Finally, after almost 10 years, the U.S. economy is strong enough to handle higher interest rates after nearly a decade of financial crisis emergency life support by the Fed.
The Fed raised rates by 25 basis points yesterday;This was followed by a statement that said more rate hikes are on the way;Rate increases will be at a “gradual pace”;The Fed will remain “data Dependent”.
The above key points give me enough support to buy US dollars on weakness, provided the data stream does not fall off a Cliff.
What do USD traders do from here?
The trading strategy, as we move forward the post rate hike, in my opinion, is to keep an eye on the U.S. economic data stream (Economic Calendar) and as long as the data is relatively positive, buy the USD on weakness.
Trade safe friends.Publication source