#USD Adjustment Provides Initial CCY Relief

The fact that the #FED has finally came through with the much expected 25 basis point rate hike and have given their forward guidance on the next two rate increases have given Asian markets a relief. The recent decline of the #USD - DXY retreated mid-way through the 100 support levels likewise gave its foreign currency counter-parts a boost including the #EURO and #CABLE.

Note: Off-shore investments may look more attractive to investors, with emerging markets benefiting from a weaker dollar as price adjustments are made, which in fact is attractive for the Euro at this time. Especially with the encouraging comments made by ECB Mario Draghi in his latest press conference.

European majors such as the #EURUSD have risen above the 1.0700 while #GBPUSD stayed at the lower band of the established trend trading at 1.2273 levels. While the rest of the Asian currencies have made their respective exchange rate adjustments. The confirmation by the FED's rate increase have already been priced in the market for sometime leaving enough room for the lower adjustment to be made even before the day of the Fed's announcement.

'Moving forward, we do expect a comeback of volatility as the USD, and the precious metals including the oil markets would be in the limelight. Meanwhile, the US Stock Markets would experience a wider band of trading price range as it goes through the same level of price adjustments coming into the 2nd quarter of the year.'