But as we have already noted, the devil will be covered in detail. Namely in the comments of the Fed on the future of . They will determine the dynamics of the dollar.
To our point of view, comments have been more than aggressive but again, in general, there were expected.
Let's start with the so-called "dot plot" - the plan of the Fed to raise rates. He was quite aggressive before, but after yesterday's the FOMC meeting began to look even more "tough." According to the updated plan, we are waiting for another rate increase in 2018 (this will be the fourth (!) the Fed’s rate hike this year). Besides, the plans to increase the rate three more times over the coming year.
As we can see, forecasts are incredibly aggressive, especially amid others key World Central Banks policy, which either hold the rate sustainable (Bank of Japan, ECB) or increase it quite rarely and haphazardly overall (referring to the Bank of England and the Bank of Canada). That is, the differential of interest rates will grow in favor of the dollar. So, the dollar will become more and more attractive to "profit-seekers." Which let us a basis to recommend buying a dollar in the foreign exchange market.
This is supported by the Fed's updated forecasts on the economic growth of the United States. In particular, the outlook for GDP growth was raised, and it was also noted that the labor market situation is stable, and remains near the target level of 2%.
We attribute the results of the FOMC meeting to the dollar. The Fed continues to tighten whereas the economy is in excellent shape. All combined, and also in comparison with other developed countries, gives us a reason for recommending for buying the dollar. First of all, this can be done against the euro , as well as the Japanese yen .