Interest Hike gives Strength to the Dollar

Interest Hike gives Strength to the Dollar




With good data coming from the US we entered the USDCHF with expectation on the Dollar gaining strength from an interest rate hike.

Federal Reserve Chair Jerome Powell briefed the media on the Fed decision, markets had been waiting eagerly. Many had been anticipating a hike including ourselves, so wanted to get priced in to the market.

A recent downfall in price from above the 10000 mark had shown a quick sell off so investors and speculators of the Dollar and Swiss Franc could hope for a good position in the market.

We could see buyers at around about the 9800 mark waiting for the moment.

When the announcement  of the interest hike and been made by the Fed Chair we were in a good position to enter a Buy trade.

We still had to be a little cautious as always, knowing some news from coming out of Switzerland on the same day for the Swiss PPI m/m data – a leading indicator of consumer inflation, this data was released before the US data, coming in better than forecast gave some analysis on it’s potential impact on the USDCHF direction.

We entered the Buy trade for a short period of time, the Dollar strength could only be temporary, a huge amount of sellers could be lurking at around the 10000 and above zone.

We still managed a good profit.

Interest Hike

(Our trading and image was done using an account with UK based broker IG)

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2 comments so far

Trader2.0Posted on12:09 pm - Jun 16, 2018

Thanks for posting your trade, I too was looking to take this trade but was put off by the prospect of the marrkets being volatile, glad someone did, just with that I had.

I like your caution to the trade, I hate losing money whenever I put a trade on the price seems to go the otherway.

AdminPosted on5:26 pm - Jun 18, 2018

Hi Trader2.0

Thanks for your comment.

Sounds like from what you’ve said your new to trading, please can we suggest taking a look at some of the information on our site which we feel maybe of help to you.

https://hiltonbritcapitalfund.co.uk/avoiding-a-forex-margin-call/

https://hiltonbritcapitalfund.co.uk/new-trader-resources/margin-and-leverage/

https://hiltonbritcapitalfund.co.uk/tips-to-stay-safe-trading-forex/

Trading can be fun and exciting but can also have it’s downfalls if you are not fully aware of what can happen.

If are put off putting a trade on then stay out of the market, no one says you have to trade everyday, trade only when you have done your analysis and money management, (most important, never risk money you can’t afford to lose) remember the is always the next day. One thing to remember in trading is losses will happen, it’s only to be expected.

All the best in your trading career.

Many Thanks
HBC

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