.jpg)
The Federal Reserve hikes into a Dollar Index basket that also raised rates
The Fed has raised its rate to 3.75-4.00%, its first increase since 2023. This index measures the Dollar against six currencies, and it is not a broad measure. The Euro alone is 57.6% of it. Add the Yen and the Pound and three currencies account for roughly four-fifths of the whole thing, and two of those three central banks are raising rates as well. The European Central Bank (ECB) took its deposit rate to 2.50% six days ago, and the Bank of England answers at 11:00 GMT tomorrow. The vote was 12-0, and the statement offered nothing at all about what comes next. What the index measures is not whether American rates went up, but whether they went up by more than everyone else's. The weights it uses to answer that were last changed in 1999.
US Dollar index is in a temorary rally with heavy resistance at 101
https://stockcharts.com/sc3/ui/?s=%24USD&...7573553682
But the up trend in gold price is intact with only a pull back on the strength of the US Dollar, after the dust settles, gold price will take off, supported by strong fundamental of central bank buying around the world and bullish technicality.
https://stockcharts.com/sc3/ui/?s=%24GOLD&...1855118363
Mining stocks also are making technical correction after XAU's 43% gain from Index 300 to 430
https://stockcharts.com/sc3/ui/?s=%24XAU&...8449525445
SPA.V is in an over sold territory and in a final shake out of the weak hands in low volume.
https://stockcharts.com/sc3/ui/?s=SPA.V&p...1855118363 .
.
.
The Fed has raised its rate to 3.75-4.00%, its first increase since 2023. This index measures the Dollar against six currencies, and it is not a broad measure. The Euro alone is 57.6% of it. Add the Yen and the Pound and three currencies account for roughly four-fifths of the whole thing, and two of those three central banks are raising rates as well. The European Central Bank (ECB) took its deposit rate to 2.50% six days ago, and the Bank of England answers at 11:00 GMT tomorrow. The vote was 12-0, and the statement offered nothing at all about what comes next. What the index measures is not whether American rates went up, but whether they went up by more than everyone else's. The weights it uses to answer that were last changed in 1999.
US Dollar index is in a temorary rally with heavy resistance at 101
https://stockcharts.com/sc3/ui/?s=%24USD&...7573553682
But the up trend in gold price is intact with only a pull back on the strength of the US Dollar, after the dust settles, gold price will take off, supported by strong fundamental of central bank buying around the world and bullish technicality.
https://stockcharts.com/sc3/ui/?s=%24GOLD&...1855118363
Mining stocks also are making technical correction after XAU's 43% gain from Index 300 to 430
https://stockcharts.com/sc3/ui/?s=%24XAU&...8449525445
SPA.V is in an over sold territory and in a final shake out of the weak hands in low volume.
https://stockcharts.com/sc3/ui/?s=SPA.V&p...1855118363 .
.
.
