This afternoon’s FOMC rate statement and economic projection presser resulted in a bullish response for the Dollar as further rate hikes are likely until 2024.
The Federal Reserve discussed the possibility of 6 to 7 interest rate hikes until 2024 as the council is optimistic about the economy recovering from the pandemic. The Dollar is back on the path to reach 93.430 and the daily hammer suggests a move that pushes past this level.
The Dollar appeared bullish to start the week and this afternoon’s presser has added more momentum to the bullish side. As a result, many majors are breaking out of their consolidation and are headed lower. Both pairs look to attain the low made back in August.
Later today traders will have the release of the Euro and Pound PMI manufacturing data. This release will span across much of the London session. Traders will most certainly see volatile conditions for both EURUSD and GBPUSD during this time.
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