U.S. Dollar Forex Trading Forecast

Greenback unlikely to maintain recent momentum

After yesterday’s Fed announcement, the U.S. dollar rallied against other major currencies. However, things are already changing around for the U.S. dollar forex trading forecast. While the greenback received some momentum from the announcement, GFT’s Kathy Lien explains in FX360 why the dollar rally is unlikely to last:

So if the Fed did nothing, then we can expect nothing to alter the near term outlook in the currency market. As we indicated in our FOMC Instant Insight , the “rally in the dollar may not have significant follow through because at the crux of it, the statement remains virtually unchanged.”

Indeed, the dollar is already dropping to the euro in forex trading, even though it is gaining against the pound and the yen. In the long term, the greenback is not expected to maintain any sort of a rally against the euro in forex trading.