THE U.S DOLLAR TUMBLES AS FOMC MEMBERS DISSENT OVER FUTURE RATE HIKES
U.S DOLLAR TUMBLES
The U.S dollar index fell sharply lower following the FOMC monetary policy decision, despite the Federal Reserve hiking rates 0.25 percent. The greenback fell after the FOMC monetary policy decision, as it was revealed that Federal Reserve Bank Governors Charles Evans and Neel Kashkari dissented, going against the December rate increase. The U.S dollar index fell sharply against the euro, Japanese yen, British pound and commodity related currencies, as investors fear the FED will now increase rates more gradually in 2018.
BOE AND ECB ON HOLD
The Bank of England and European Central Bank kept interest rates on-hold this week, with policy makers from the BOE and ECB striking a cautious tone towards fiscal policy over the medium-term. The Bank of England struck a dovish tone, promising only gradual interest rate increases over the coming three years. The European Central Bank President Mario Draghi also reiterated that inflation is muted, and the need for slowly reducing fiscal stimulus from the eurozone economy
The GBPUSD pair remains bullish while trading above the 1.3400 level. Further upside towards the 1.3500 and 1.3610 levels remains possible.
Should price-action on the GBPUSD pair move below the 1.3400 level, sellers may start to test towards the 1.3340 and 1.3300 support levels.
The New Zealand dollar moved higher this week, as the government announced Adrian Orr as the New Reserve Bank of New Zealand Governor, removing some of the uncertainty around the nations monetary policy. Adrian Orr, who was once a deputy governor at the RBNZ and is currently the CEO of New Zealand’s sovereign wealth fund. Incoming Governor Orr will replace the outgoing Grant Spencer from March 27, 2018, when his term as the Governor of the Reserve Bank of New Zealand comes to an end .
The NZDUSD pair remains bullish while trading above the 0.6980 level. Further upside towards the 0.7020 and 0.7055 levels remains possible
Should price-action on the NZDUSD pair decline below the 0.6980 level, sellers may target the 0.6950 and 0.6928 levels.
LITECOIN AND ETHEREUM SOAR HIGHER
The value of the cryptocurrencies Litecoin and Ethereum soared this week, as value investors went bargain hunting. The move higher came as digital currencies gain more widespread acceptance, following the opening of Bitcoin futures on the CME Futures exchange. The price of Litecoin rose over two-hundred dollars, hitting a record $372, after starting the week around the $150 mark. The second most widely traded cryptocurrency Ethereum finally broke above the $500 mark, creating a buying frenzy, and rising to a new all-time record high of $770.