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The Federal Reserve raised its benchmark rate by 25 basis points, as widely expected, and kept its outlook for a third hike in 2017. The statement was more optimistic than expected, noting solid employment and expanding household spending despite softer inflation.
The dollar surged after the decision.
A hawkish Fed lifts USD-denominated yields and the dollar, which tends to pressure dollar-priced commodities and raises import costs for feed buyers in other currencies.
forex.comGlobal authorJun 14, 2017After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
The hawkish Fed hike with an intact third-hike outlook and balance sheet reduction plan triggered a dollar surge, which is the main driver of the move.
