Dollar was weaker after FOMC meeting on Thursday. Fed hiked interest rate to 1.75% and retained view to raise interest rate 3 times as well as inflation at 1.9% in 2018. The result did not surprise market as investor awaited for 4 times hiking of this year. Therefore, U.S. dollar fell hard after Fed meeting on Thursday. I think greenback fell on the short-term speculation so it may need to struggle to get back the strength for long-term. Powell expressed the positive on U.S. economy and increased GDP forecast to 2.7% in 2018 so it may support world shares to stand tall. However Trump trade policy may keep swinging markets as investor are scared about the future growth so this issue is also concerned by Fed.
I think today U.S. dollar may try to get back some strength supporting by core durable goods at 19.30 p.m. which may edge higher after existing home sales rose on Tuesday as well as new home sales at 21.00 p.m. also predicts higher. Nonetheless, U.S. dollar may weak in this week compare with other main currencies. USD/CAD may fall lower than 1.2800, If core CPI and core retail sales of Canada at 19.30 p.m. reach the forecast or better. If U.S. dollar is still weak and Trump still set the trade tariff for China, gold price may rise higher and may break 1340 points on Friday.
Bitcoin rose back to 9,000USD and Ethereum rose above 500USD again even the volume in India decreases 90% because of the central bank measure. U.K. may have a government “crypto assets task force” that will help the U.K. to manage the risks around Cryptoassets, as well as harnessing the potential benefits of the underlying technology including the next steps in “robo-regulation”.
By Niramon Nitnitiphruet
Financial analyst, Olymp Trade.