The art of the dovish hike

The Ides of March proved to be ominous for dollar bulls as the Fed succeeded in beating the greenback while hiking rates. We discuss what this means and touch on other market moving events before previewing the next week.

  1. We told you: The Fed probably took advantage of the rally in stock markets to bring forward a hike, as we told you. Otherwise, it is hard to find an explanation for raising rates without upgrading the outlook. The move hurt the dollar and allowed stocks to rally.

  2. What’s next? The Fed seems to gain more market-moving power. How many rate hikes can we expect for 2017? Markets are only slightly less bullish and we will all be looking at the data. This promises higher volatility.

  3. Other events: The BOE surprised with a hawkish tilt and Dutch voters did not provide much support to the extreme right, boosting the pound and euro respectively.

  4. Preview: A calmer week awaits markets but Yellen and dissenter Kashkari have their chance to move markets. Also note the durable goods orders.

Listen to the podcast here:


Foreign exchange (forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher.
investment objectives, risk appetite and the trader’ level of experience should be carefully weighed before entering the forex market. There is always a possibility of losing some or all of your initial investment / deposit, so you should not invest money which is which it can’t afford to lose. The high risk that is involved with currency trading must be known to you. Please ask for advice from an independent financial advisor before entering this market.

Any comments made on Forex Crunch or on other sites that have received permission to republish the content originating on Forex Crunch reflect the opinions of the individual authors and do not necessarily represent the opinions of any of Forex Crunch’s authorized authors. Forex Crunch has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: Omissions and errors may occur.
Any news, analysis, opinion, price quote or any other information contained on Forex Crunch and permitted re-published content should be taken as general market commentary. This is by no means investment advice. Forex Crunch will not accept liability for any damage, loss, including without limitation to, any profit loss, which may either arise directly or indirectly from use of such information.