Fed Hike Fails to Propel Dollar Higher

Traders are still not certain how to react to the decision of the Federal Reserve to hike interest rates. As a result, the US dollar demonstrated rather mixed performance, showing no clear trend.

Initially, it looked like the Fed’s decision was very supportive for the US currency as many economists had anticipated. This resulted in uncertainty about the future of the currency despite the the gains. And indeed, the greenback struggled to keep its upside momentum, slowing its advance versus some peers and even falling against others, like the euro.

This week should be light on important reports and events due the Christmas holiday. But the final revision of the third quarter’s US gross domestic product is scheduled for release tomorrow, and it may have some impact on the dollar’s performance.

EUR/USD traded at 1.0917 as of 3:52 GMT today after rallying from 1.0851 to 1.0917 yesterday. GBP/USD was down from 1.4898 to 1.4881 during the previous session and remained at that level as of now. USD/JPY edged up from 121.18 to 121.27 after falling from 121.24 on the Monday’s session.

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