Profit: -$6.44 Total: $655.49
The rate hike was raised first time this year by 25 basis point but the dollar bulls were not happy. In fact, there were a lot of profit taking along with selling across the dollar. Although Yellen has stated optimism in the labor market and business sentiment, she still remains cautious. If everything still goes well to plan and the economy continues to gradually grow, it looks like we’ll have 2 more rate hikes this year; a hawkish decision would be 3 rate hikes.
Things were funky before the FOMC statement and I gained a few losing trades by falling into a long dollar trap. Luckily I was able to make some of the losses back and stayed away during FOMC volatility. It looks like the dollar bulls will be quiet for a bit until we can find some support. The strong reaction in any dollar chart, here’s one of USD/JPY.