Hawkish Fed

The Greenback strengthened in response to President Trump’s address to congress, and now investors are moving on to the next big thing; Fed speakers and a possible rate hike for March.

Our Forex signal from Monday-Tuesday agreed as we bought the USD and sold the GBP and reached our Target ahead of Trump’s speech.

USD INDEX

The USD Index climbed to its highest level since early January as Federal Reserve Bank Presidents William Dudley and John Williams (New York and San Francisco presidents) hawkish comments spurred bets for a rate hike. Chances of a Fed rate hike at the March meeting is now over 60 percent. These are all appetizers to the main course on Friday when Fed Chair Janet Yellen speaks in Chicago, and then of course the actual Fed meeting midway through the month.