Dollar Surges as Fed Hikes Rates to 3.75%-4.00%
The US Dollar Index (DXY) has broken above the psychological 100.00 barrier and held its ground, as investors assessed the Federal Reserve's decision to raise interest rates by a quarter percentage point to 3.75%-4.00%. The hike was widely anticipated.
The usual Initial Jobless Claims took center stage on Thursday, September 17, followed closely by Housing Starts, Building Permits, Pending Home Sales, and the Philly Fed Manufacturing Index.
As a result of the solid US Dollar performance post-Fed decision, EUR/USD dropped below the 1.1500 contention zone to hit fresh multi-week troughs, while GBP/USD retreated for the third day in a row, falling back below the 1.3400 level for the first time since late July.
The Bank of England (BoE) is expected to keep its bank rate unchanged at its upcoming meeting.