Broker Arena

December 14, 2016

FED hikes the rate: Don’t miss unique trading opportunities!

FED hikes the rate: Don’t miss unique trading opportunities!

The US Federal Reserve raised its key rate by 25 b.p. to 0.75% and projected another three rate hikes in the following year.

Despite a certain degree of “hawkishness” the FED cooled market enthusiasm saying that the monetary tightening implies gradual increases leaving themselves a room to adjust forecasts.

It is highly likely that the policymakers will raise borrowing costs three times in the coming year.

Markets was almost certain in December increase although reaction on US Dollar suggests some degree of uncertainty has been hovering in the air. US Dollar index soared more than half of percent posting biggest declines against Australian Dollar plunged together with commodity market.


European currency and Pound also slid against the Dollar as the tone of Yellen speech appeared to be more than hawkish ensuring short term strengthening of the American currency.

Oil plunged after short-term spike provoked by upbeat EIA US inventories data as stronger Dollar negatively affects Dollar-denominated commodity market. FED outcome also incited a rout on equity markets both in developed and emerging markets. Gold plunged due to the gloomy prospects of yields on the metal while Silver rose.

Based on the current fundamental data here are some short-term trading calls:

Oil (WTI): BUY, TP 54.50, SL 49.50

EURUSD: SELL, TP 1.0490, SL 1.0645

USDJPY: BUY, TP 119.50, SL 113.90 

Stay tuned with our updates to get free trading signals!

Feel free to leave your comments in the section below.

No votes yet.
Please wait...
0 likes Market notes
Share: / / /

Leave a Reply

Explore sections
Top 10 Forex Brokers
  1. Pepperstone
    Rating: 5.0. From 1 vote.
  2. Tickmill UK
    Rating: 5.0. From 1 vote.
  3. FX Pro
    Rating: 5.0. From 1 vote.

Subscribe to get our Premium ideas for trading!

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

Broker Arena will use the information you provide on this form to be in touch with you and to provide updates and marketing.