Boost for emerging markets following upbeat Federal Reserve

Emerging Markets Boost!

There has been some softening in the US dollar, even though the Federal Reserve was upbeat after raising US interest rates for the second time in 2018, with a boost to the currencies for many emerging markets.

Following the latest US interest rate increase, there has been a pattern developing of traders taking profits on the dollar and this is giving strength to different emerging markets currencies, and most currencies across Asia are trading higher against the USD, including the Chinese Yuan, Indian Rupee, Philippine Peso, Malaysian Ringgit and Korean Won.

Even though this could be a short-term shift, the rebound is not expected to last too long according to the market experts. The Federal Reserve message was more upbeat than most expected yesterday with markets, and it's now expected that we will see two more interest rate increases before the end of 2018 as there is an optimistic feel to the state of the US economy.

With the improved outlook for the United States economy and the now higher US interest rate, it is expected that many investors will buy the Dollar at surprising lower levels.

Check the latest market sentiment and date here: https://www.yadix.com/forex-trading-community/economic-calendar/