I wasn’t too surprised that the FED last week announced that they will not be raising interest rates in the near future however, I was surprised at the EUR/USD huge surge in the value of the Euro against the Dollar which occurred after the announcement was made. The rally was the biggest on the EUR/USD in three years, this was a bit unexpected in my opinion considering the all the turmoil the Eurozone is facing, with terms such as Grexit and Grexident frequently being tossed around.
However, the weakening of the Dollar gave some strength to US equities and commodities such as Oil, Gold, and Silver. This was good news for me as I invest in physical precious metals.
Perhaps this is the beginning of a trend reversal for the Dollar but I still believe the Dollar has more strength to show and I wouldn’t be surprised if within the year the Dollar reaches parity with the Euro or even becomes stronger.
We will just have to wait and see.