The Federal Reverse decision did have effects, as expected, but I am not that sure that the effects was expected. As with USD currency. Today, USD hit its 3-week low against Euro & Sterling, meanwhile it hit its 4-week low against Canadian dollar. According to news, it would be because the minority was still powerful and this is the result of the unhappiness of the part of the market believing in the hike for September, instead of the current situation of no changes and no moves from the Fed. However, Australian dollar gained a lot, with the Kiwi dollar. Why? Probably because it is more risky currencies. What is your opinion on the US dollar low, how it should be handled and will it continue?
Some analysts think the Fed decision will not stop appreciation of the dollar. I wonder though now that it's a little weaker does it mean that the bucks rally has stopped? I think though that it will take some more time to actually find out which direction the dollar is headed.
As I understand it after watching the NHK morning news (11 pm EDT) a few hours ago, investors had pulled money out of the Japanese and South Korea markets in anticipation of the Fed rate rise. The purpose was to seek higher rates of return in the USA markets, particularly in the financials that would have benefited.
The real problem is between what analysts says and what happens, sometimes it's so apart that we can't know. Honestly, I think as analysts said, that dollar won't be much affected, but I know already that the growth of the dollar is not unlimited, and if it happens that the Fed interest rise would help dollar to go up, maybe they should consider it quickly before the dollar ever gets in stagnation or falling. And when I say falling, it's not really like today, but a real fall, indeed. The minority who believed in the rise. Well, they're not only the minority, but a part of it.
