Fed Raises Interest Rate by 25 Basis Points

The Fed's 25 basis point rate hike is a slightly positive signal for the DXY. However, this decision may be largely priced in; indeed, the 24-hour change is only +0.09% and the price is just above the SMA20 and SMA50. The RSI at 57 is not in overbought territory, and the MACD is only slightly above the signal line, indicating weak momentum. In the short term, I expect a moderate upward trend in the dollar index, but the movement is likely to remain limited and encounter profit-taking.

The Fed's 25 basis point rate hike, while in line with market expectations, may suppress risk appetite in the short term. The S&P 500 (SPX) closed down 0.53% at 7621.92, trading below its 50-day moving average (7635.93), confirming a weak technical picture. The RSI is at 52, in neutral territory, but the MACD is negative and below its signal line, indicating that downward momentum may continue. Post-rate hike statements and data flow will determine the direction; a hawkish tone could increase selling pressure. In the short term, support at 7600 is critical; a close below this level could accelerate the decline.

The Fed's 25 basis point rate hike, while in line with market expectations, may suppress risk appetite in the short term. The NDX closed down 0.56% in the last 24 hours at 29,215 and is trading below its 50-day moving average (29,280). The RSI is at 53, in neutral territory, but the MACD is negative and below its signal line, confirming weak momentum. After the rate hike, profit-taking may be seen in technology stocks, with 29,100 (SMA20) watched as the first support. Nevertheless, since the decision was priced in, the decline is likely to be limited; therefore, confidence is moderate at 0.55.

The Fed's 25 basis point rate hike is generally a negative factor for gold prices, as higher interest rates provide an alternative yield to gold and can strengthen the dollar. However, GLD's last close was 4336.07, up 1.23% in 24 hours, with an RSI of 52.5, indicating a neutral zone. The MACD is below the signal line, suggesting weak short-term momentum. The news may already be priced in, so the impact could be limited. Nevertheless, downward pressure on gold can be expected after the rate hike.