Dollar Index - Will Rate Hikes Cause Risk Off Conditions?It’s been a risk off environment over the last few weeks and because of this, we have seen the appreciation of GBPUSD and EURUSD which was called weeks in advance.
With a massive imbalance above and daily sellside liquidity taken, the question is will Dollar Index fill the daily SIBI before the rate announcements happen?
If this happens, it will be a classic ‘buy the rumour, sell the news’ scenario.
Next week will be very volition due to the news events being released and this could be the catalyst for price to expand into the local SIBI outlined on the daily timeframe.