INTEREST RATES WEEK? FOMC NEWS RELEASE AND ITS IMPACT ON THE USD

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Good evening traders, I hope you're all good and had a great weekend. The last trading week was one to remember as it was full of high impact news from the Swiss National Bank on Swiss Franc (CHF) monetary policy to Bank of England releasing their monetary policy report and the most high impact being the Federal Open Market Committee (FOMC) that shook the markets after the interest rates hike. 
Job gains have been robust in recent months and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices and broader price pressures. The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the long run. To support this, the Committee decided to raise the rates from 2.50% to 3.25% , a 75bps hike and anticipates that ongoing increases in the rates will be appropriate. The Fed estimates an increase to 4.40%, another 115bps hike in the near future which is extremely hawkish. 
This caused the US Dollar Index (DXY) to rally sharply, breaking the daily supply level of 109.857 & 108.615 and monthly level forming new highs and closing the week at 112.767, the highest the dollar has ever been. This in turn caused a strong bullish sentiment on all USDXXX pairs ie USDCAD, USDCHF, USDJPY, USDZAR and a strong bearish sentiment on all XXXUSD pairs ie EURUSD, GBPUSD, NZDUSD, AUDUSD including assets like gold (XAUUSD) and crypto like BTCUSD and ETHUSD.


DOLLAR INDEX DAILY CHART


DOLLAR INDEX MONTHLY CHART



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