The year 2016 ends imposing a bullish tone to the dollar

The U.S dollar traded higher in the last trading week imposing a strong bullish momentum in the market for the last four trading year in the market against its all major currency pairs in the global market. Though the green bucks traded higher in the last trading week, the EURUSD pair managed to rally high in the market even during low volatility trading session. However, the gain of the EURUSD pair was erased to a great extent prior to the market closing. The over the strength of the U.S dollar index has been measured against the major six currencies in the world, gained 3.5 percent in the year 2016 and hit the 14 years high in the market. Despite the strong bullish rally in the U.S dollar index the EURO gained a near about 2 cents on the market and traded at $1.0651 level which is also the highest price since December 2014.

The dollar gained its first bullish momentum in the market in the event of the U.S presidential election held on 8th November 2016.After winning the presidential election Donald trump declared that they are going to increase the fiscal spending in the next year and such an optimistic statement from the newly elected president gave the dollar a strong boost in the global economy. The U.S dollar index rallied hard during that event and gained near about 4.3 percent in the global market since the U.S presidential election. In the last FOMC meeting minute, the FED also hiked their interest rate on the basis of 25 points and FED chairperson Janet Yellen stated that they are planning for another three rate hike in the year 2017.On that event, the U.S dollar index scored a record high in the market and pushed the most of its major rivals on the ground.

Most of the traders are now saying that the bullish momentum in the US dollar index will exhibit strong pressure in the next year also. But some the professional traders are overly cautious about Mr. Trump new policy since a slightest unexpected activity will create strong bearish sentiment in the market. According to the chief market analyst of one of the most reputed brokers FX Primus, Marshall Gittler said that the dollar is most likely to continue its bullish momentum in the global economy as Mr. Trump business mentality will help out the Chinese economy. However, the dollar index fell by 0.62 percent in after hitting the 14 years high at 103.65 level on 20th December 2016 and traded near 102.40 level.

During the bearish slip in the U.S dollar index the Japanese Yen gained near about 3 percent in the market and all the major pairs showed nice bullish retracement against the mighty U.S dollar. On that event, the USDJPY pair traded at 116.77 marks in the global market.

On the contrary, the Great Britain Pound suffered an extensive loss in the global market during the Brexit event on 24th June 2016.After hitting the critical low in the market the market managed to initiate its bullish correction but the bullish sentiment has been completely washed with the current strength of the U.S dollar. On the recent weakness of the green bucks the pound was up by 0.82 percent and traded at $1.2368.The euro also gained a decent amount in the market and went up by 0.67 percent against the green bucks and trade at $1.0561 level. Most of the professional traders are now thinking about the next movement of the market. All the major currency pairs are now trading at a critical level and professional traders are cautiously waiting for the next year begin into trade the market.

The next year is going to be very important for the U.S economy since the FED has declared that they are going to implement three rate hike. If the FED goes for three rate hike in the next year then the dollar will be significantly stronger against its all major currency pairs in the gold. The price of gold is also trading near a critical level and most of the professional traders are thinking that price of gold will rally high from the very beginning of the next year. However, things remain broadly support in favor of the green bucks and the gold traders should be extremely cautious while investing in gold. But if the current support level in the gold price manage to create a bullish momentum in the market then we will see a strong bullish recovery in the price of gold.TO be precise the over market sentiment is slightly bullish for the gold but technically and fundamental the dollar is still holding the ground.

If the FED goes for two rate hike before the month of November 2017 then the green bucks will become significantly strong in the global market and we will a long term bearish trend in all its major rivals in the market. Leading economist are thinking about the long-term consequence of the rate hike. If the FED goes for a premature rate hike in the market the overall inflation rate will be imbalanced in the U.S economy. To safeguard the current performance of the U.S economy the central bank will force the FED for at least two rate hike before the month of November. So if you are thinking too short the green bucks at the current level then you should probably wait for the dollar to lose its ground fundamentally. Make sure you trade the market on the basis of major three types of analysis.

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