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There has been a massive confusion into the mind of the investors regarding the ongoing strength of the U.S dollar due to the pending interest rate hike decision. During the FOMC meeting, minutes in last December FED chairperson stated that they are going to increase their interest rate for at least three times in the global economy. Most of the leading investors are overly cautious in this week since the FED is most likely to hike their interest rate in the upcoming FOMC meeting minute. If the FED comes up with a hawkish hike than the green bucks will gain enough bullish power in the financial market and push down most of its major rivals. However, if the FED postponed the current interest rate hike then we are going to see a weaker dollar for the next one week at least. In the last week, the average hourly income also fell for the U.S economy which signifies that the current economic performance of the U.S economy is not up to the market. Some of the leading economists in the global market are thinking that the March rate hike will not be enough to secure a stable platform for the green bucks.

Dollar slightly weaker: The U.S dollar is slightly weaker in global economy prior to the FOMC meeting minute. In the last week, the green bucks lost most of its bullish momentum in the global market since the average hourly income fell significantly. Some of the leading economists are thinking that a rate hike at such stage might have a negative impact on the U.S dollar but still, this statement from the leading economist is not giving any ease to the leading investors as Mr. Trump administration is totally unpredictable. There has been a decent drop in the U.S dollar index for near about 0.22 percent and it traded at 101.16.The U.S dollar index is the overall measure of the green bucks strength against the six major currency pairs in the world and the last two consecutive week fall of the index has created a line of fear into the mind of dollar bulls. Currently, the U.S dollar index is trading near a critical support level and if it manages to exhibit bounce from this level then you will see a stronger dollar in the upcoming days. Most of the leading investors are currently on the sideline and waiting for a clear clue to trade the market.

Currency market overview: In the last week the green bucks lost most of its bullish momentum in the global economy prior to the market closing after the release of the news of U.S non-farm payroll data and average hourly income. During that event, the EURUSD pair rallied higher in the global market and touch a significant high at 1.0705 posting a strong bearish threat to the green bucks. On the contrary, the ECB president Draghi also gave a hawkish speech in the ECB press conference and it gave the EURO a solid platform in the global market. The mighty dollar slipped against the Japanese Yen for near about 0.09 percent in the global economy and traded at 114.71 prior to the market closing. However, the Great Britain pound recovered some its losses for near about 0.45 percent and traded at 1.2224 in the global economy. On the other hand, the EURGBP pair suffered extensive loss for near about 0.65 percent in the global market and traded at 0.8724.Most of the leading investors are currently on the sideline since there is no clear overview of the market. However, some of the aggressive investors are buying the green bucks since there is a strong possibility of a rate hike in the upcoming FOMC meeting minutes.

U.S consumer sentiment: There has been a catastrophic confusion into the U.S consumers. After Mr. Trump become the newly elected president of the U.S economy he stated that they are going to increase the fiscal spending and include tax cut policy. After such an optimistic statement from the U.S president, the green bucks rallied higher in the market and during that the event the U.S dollar index secured a 14-year record high in the global market. But when the consumer realized that Mr. Trump had failed to keep his promise the market reacted sharply and the dollar bulls lost the control of the market. However, in the upcoming week, the dollar bulls might get fresh buying pressure in the global market as there is 90.4 percent chance of interest rate hike decision by the FED. Most importantly the FED is now currently under the pressure of the U.S central bank since they need at least two rate hike before the month of November 2017 so that they can adjust their current inflation rate. A hawkish rate hike from the FED along with Mr. Trump positive statement might create extensive buying pressure in the market for the green bucks.

Summary: The global market is totally uncertain regarding the next move of the U.S dollar. This week is very important since FED is going to declare their interest rate hike decision. Most of the leading investors are expecting a hawkish rate hike and if FED chairperson manages to come up with a hawkish rate hike than the green bucks will push all of its major rivals lower in the market. However, according to some leading economist, the hawkish rate hike in the march FOMC meeting minute might not be enough for the green bucks so it’s better to play safe at the current moment.

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