Dollar pushes higher prior to the Christmas holiday ending

The green bucks have been showing significant strength in the global market after the U.S presidential election held on 8th November. The presidential election was extremely important in the currency trading community since most of the traders were thinking that the mighty dollar will slip in the ground if Mr. Trump wins the battle. But Mr. Trump shocked the whole economy in a press conference stating that he is going to increase the fiscal spending and going to implement tax cut policy from the very beginning of the next year. Most importantly he also declared that tax cut program will be implemented to ensure the ease of consumer sentiment. Such a sophisticated state after the U.S presidential election from Mr. Trump created a strong user sentiment in the U.S economy and pushed the dollar higher in the global market. After that event things went pretty smooth for the U.S dollar and it became broadly stronger against its all major rivals in the global economy and trader started to buy the green bucks.

The long anticipated rate hike was also made in the last FOMC meeting minute. The fed went for 25 basis point rate hike in this year which gave the dollar the largest boost in the forex market. The dollar index sharply rose to the 14 years high in the global market and created a record high. The dollar gained more strength in the market as the FED projected three rate hike in the next year and it created strong bullish sentiment in the global market. Most of the leading economist researchers are thinking that three rate hike will be extremely difficult for the FED since all their economic sectors needs to perform extraordinarily good in the global market. So the FED will be extremely careful about immature rate hike since it will greatly weaken the U.S economy in the long run.

In the last trading week, the U.S dollar index slipped from its 14 years high in the global market and most of the traders considered this event as bullish exhaustion criteria. Due to dollar index slip from its record high, the price of gold significantly went up in the global market and the dollar become broadly weaker against its all major rivals in the currency trading community. Some leading currency strategist also considers this event as the indication of bullish correction in the forex market against the green bucks. However, the researcher is well aware of Mr. Trump since he has the solid track record to reconstruct the structure in order to get the best output from the market.SO those who are strongly bearish on the U.S dollar needs to be extremely carefully since dollar might gain significant strength in the global market in the near term future.

In the eyes of trained professional trading, the forex market can be extremely difficult from the very beginning of the year 2017 since the trader need to carefully observe lots of other factors in the global economy. The U.S GDP growth indicators that the dollar has gained an immense amount of strength in the global market in the last three months.SO this clearly states that the dollar is still holding its ground firmly and not yet ready to lose the control. Always remember that the dollar will not lose its ground all of sudden rather it will gradually collapse after a series of the negative economic news release. So if you are thinking too short the green bucks at the current moment make sure that you know your potential risk in the market. Shorting the dollar at the current stage will be an immature act in the forex market since the bullish steam has not yet been finished.

There has been a nice sign of recovery in the EURUSD pair after it hit the thirteen years low in the global market. Most of the professional traders are thinking that the initial bottom of the EURUSD pair is now formed at the 1.03520 level. If the support level holds then we will see a strong bullish momentum in the market in the near term future. Many traders are already long on this pair but this is today an immature act since the dollar bulls are again coming to back to the market. In this week the dollar recovered it loses in the forex trading market to great extent. Most of the traders are currently on the sideline and enjoying the Christmas holiday. Economist is thinking that the market has already absorbed its bullish momentum in the market and it’s ready for the retracement. But before you go short you should look at the fundamental factors since the FED will go for at least two rate hike before the month of November 2017.Moreover they will be also under extreme pressure from the central bank as they need at least two rate hike to adjust their inflation rate.

On the other hand, the USDCAD is again pushing higher in the forex market since the price of oil is again losing its ground in the energy sectors. However, if all the leading oil producing countries in the world cut their oil production and maintain 1.8 million barrel per day then we will see a strong rebound in the oil price. The price of gold is also trading near the critical support level. Most of the investors are thinking that the price will rally high in the market if dollar slips in the global economy.TO be precise the overall sentiment of the dollar is the little bit cloudy at the current moment and we expect the traders to remain the sideline until the dust settles.