while Feds increased another 25bps for interest rates, I think DXY will drop more... but why?
the only reason is that the Fed's decision to raise interest rates is not made in isolation, but in response to broader economic conditions. If the Fed raises interest rates in response to inflation, for example, this could be seen as a negative for the U.S. economy and could lead investors to sell the dollar. so If investors are worried about the unhealthy economy in USA , they may go to invest in other safe assets or (other countries with higher interest rates).
" the possibility of this is very small"
Targets for DXY: 101,100,99,96... maybe lower, depends on Fed's decision on future
the only reason is that the Fed's decision to raise interest rates is not made in isolation, but in response to broader economic conditions. If the Fed raises interest rates in response to inflation, for example, this could be seen as a negative for the U.S. economy and could lead investors to sell the dollar. so If investors are worried about the unhealthy economy in USA , they may go to invest in other safe assets or (other countries with higher interest rates).
" the possibility of this is very small"
Targets for DXY: 101,100,99,96... maybe lower, depends on Fed's decision on future
