Dollar bulls hold its ground as possible rate hike in March

There has been massive confusion into the mind of traders from the very begging of the year 2017 as the U.S economy faced the extreme level of trouble under the administration of the newly elected president Mr. Trump. He gave the dollar a strong bullish momentum in the global market by stating that they are going to increase the fiscal spending and include tax cut policy. But the market absorbs all the bullish heat of the green bucks prior to year closing of 2016 and impose a new bearish threat to the mighty dollar. However, the dollar still remained broadly supported in the global economy as FED chairperson stated that they are going for possible three rate hike in the year 2017 during the FOMC meeting minute held on December 2016.Though the current economic performance of the U.S economy is little bit slow and strong negative consider sentiment is prevailing in the market but the optimistic dollar bulls are hopefully the U.S dollar index will rally higher in the global economy in near future. On the other hand, some of the investors are still staying on the sideline as Mr. Trump policy is totally uncertain and full of new surprise which significantly impacts the global market.

The possible rate hike by FED in March: During the early session of this trading week the dollar lost some its bullish momentum in the global market as a possibility for a rate hike by the FED in March increases. There has been a decent bullish push in the U.S dollar index for near about 0.03 percent in the global economy and it traded at 101.15.The U.S dollar index is the over the measure of the green bucks strength against the six major currencies in the world so a slight change in its value significantly impacts the global economy. The decent bullish bounce off the green bucks was closed by the speech of Dallas FED President Robert Kaplan in Oklahoma where he clearly stated that the U.S economy might face another rate hike in the upcoming month. If the FED manages to go for a rate hike in the next month then we will see another strong bullish rally in the green bucks which will push most of its major rivals down in the global market. However, some of the leading economic researchers are still in doubt about the next month rate hike since Mr. Trump administration policy is totally uncertain at the current moment and the market might see another dazzling surprise from him.

Currency market overview: Most of the currency pair rallied higher in the global market prior to the market opening however the dollar bulls have come back to a certain extent and again trying to take control over the bulls from Tuesday trading session. According to FED rate hike monitor tools, only 33 percent of the traders are now expecting a rate hike in the next month which is an extremely good news for the bears in the market. After a sharp failed bullish attempt by the GBPUSD pair, there has been a drop for near about 0.2% in the Great Britain pound and it traded at $1.2438 in the global market. The EURUSD pair also rallied higher in the global market but it failed to break the critical resistance level at 1.0600 level. On the other hand, the green bucks gained near about 0.5 percent in the global economy and traded at 112.80 in the market. Most of the leading investors are thinking that the market will remain sideway for the remaining part of this week since there is no major news release for any of the major currency pairs in the global market except for the Aussie dollar.

Economic researcher sentiment: Most of the economist researchers in the global market are thinking that the FED will hike their interest rate in the next month since they have proposed three rate hike in this year. Most importantly the U.S central bank will also pressurize the FED for at least two rate hike in this year so that they can readjust their currency inflation rate in the global economy. However, some of the conservative investors are thinking that the U.S economy is still not ready for another rate hike under the new admiration of Mr. Trump since his orders and instruction are not clear at all. Upon the weakness of the green bucks, most of the major pairs in the global market rallied higher but the conservative traders are not ready to sell the green bucks yet. If you Mr. Trump implement tax cut policy that a strong positive consumer sentiment will be prevailing in the global market which will again push the dollar higher against its all major rivals in the economy. So investors are thinking that the dollar bulls will show its power in the global market upon the next interest rate hike by the FED.

Summary: There has been huge uncertainty prevailing in the global economy regarding the strength of the green bucks. Most of the conservative trader are waiting for the next FOMC meeting minutes where they will have a clear clue regarding the next movement of the U.S dollar. Some of the leading economists are now thinking that if the U.S economy does well for the upcoming days than there is strong chance that the FED will hike their interest rate. If the FED hike their interest rate then we will see a stronger dollar in near future.