US raises interest rates - dollar strengthens

[sasguru]

Which means commodity prices rise for those of us with a banana republic currency

More inflation, bring it on, it's all character building

[AtW]

Dollar got a bit weaker after announcement...

[sasguru]

Dollar got a bit weaker after announcement...

Not for long ...

[northernladyuk]

Which means commodity prices rise for those of us with a banana republic currency

More inflation, bring it on, it's all character building

It is like expecting that a price increase in Greggs will lead to a meaner fitter shauny, when we all know he would just drown his sorrows with British fortified wine and stop buying soap.

[jamesbrown]

Dollar got a bit weaker after announcement...

Quite a lot weaker. The reason being that the hike was fully expected and the dot plots were fairly disappointing, about the same as December, IIRC. Points to another two hikes this year, max, and we all know what happened in earlier years. I think DXY is a little down on on the calendar year, if anything. If a border tax is introduced, all bets are off...

[sasguru]

Quite a lot weaker. The reason being that the hike was fully expected and the dot plots were fairly disappointing, about the same as December, IIRC. Points to another two hikes this year, max, and we all know what happened in earlier years. I think DXY is a little down on on the calendar year, if anything. If a border tax is introduced, all bets are off...

Temporary market reaction purely because of less than expected hikes as you say.

[jamesbrown]

Temporary market reaction purely because of less than expected hikes as you say.

Probably. As with the jobs report, the initial reaction to the Fed is quite often reversed over subsequent days. That said, it has quite a lot of strength priced in w/r to Trump's tax policies, and it's becoming increasingly obvious that he's going to struggle to get anything radical through Congress (too many vested interests). Any sign of backsliding and the Dollar will take a major hit. However, any concrete signs of a BAT, and it will appreciate substantially (in theory, by roughly the new CT rate, but probably not that much in practice). More difficult to guess than usual.

[DimPrawn]

Which means commodity prices rise for those of us with a banana republic currency

More inflation, bring it on, it's all character building

Wow, there's a future for you as an economist.

An economist is an expert who will know tomorrow why the things he predicted yesterday didn't happen today.

Laurence J. Peter

[sasguru]

Wow, there's a future for you as an economist.

I'm a millionaire already, I don't need to be an economist.

Hth

[clearedforlanding]

I'm a millionaire already, I don't need to be an economist.

Hth

Oh, how naive you are. It is all the more reason to be. A million isn't very much these days.