Currency comment 3/15

The Fedral Reserve raised interest rates by a quarter percent on Wednesday.  This move has been expected for weeks and the Fed did not disappoint.  On the news the dollar fell; foreign currencies and gold rallied strongly.

Traders are now of the opinion that there will be one or at most two additional interest rate increases for the remainder of 2017.  This has taken some of the bullish wind out of the dollars sails. Many had talked about the posibility of three or even four rate increses this year.

We will see in coming sessions if the bull case for the U.S. dollar has been weakened or if it is only delayed.