Dollar Will the Mighty?

The Federal Reserve has issued a decision to raise the discount rate the Fed provided emergency loans to banking by 25 basis points to 75 basis points. By the Fed, this step is said not as a monetary policy tightening measures, because the Fed will not raise its main interest rate. The Fed said this step to encourage banks to borrow from private institutions, no longer from the Fed. This will absorb excess liquidity circulating in the financial markets so far. So if the excess liquidity that has been a pillar of market movements withdrawn, will cause a correction in the stock exchanges and other risky assets.

Market participants also saw this move as a square off the Fed to consider tightening monetary policy that resulted in U.S. dollar sentiment hunting.
Market participants will get out of risky assets and to high yield currencies such as EUR, GBP, AUD, the stock market and calculate the re-investment.
Viewed from the strength of the dollar index, the index of the dollar in recent weeks is in up trend and a little stuck on level resistennya around 80.00.
And after this news came out, the dollar index broke through the 80.00 level in areas such resistennya, and the possibility of this level will be the support level in the short term, so strengthening the dollar will likely still survive next week.

Forex