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Is the Time Right for a US Interest Rate Rise?

Janet YellenIn its strongest hint yet, the US Federal Reserve gave a very clear indication yesterday that the time is right for an increase in interest rates. There is of course several different reasons why now is a good time for such a dramatic move, and that is of course going to affect everyone who is a Binary Options and Forex trader.

In fact as the European Central Bank has also decided they are now going to start injecting more cash into the Euro Zone, the following weeks and months are going to give all traders a plethora of potentially very profitable trading opportunities which you should grab with both hands.

Having been keeping a very close eye on the US economy, Janet Yellen has announced that the US is now in a very strong position financially and have made a remarkable recovery finally in regards to the financial crisis and the way forward will be an increase in interest rates which will hopefully allow to US to stay on track and continue to grow.

Conversely things in the Euro Zone are not looking anywhere as near as good, and with an additional money printing exercise by quantitative easing and with the current refugee crisis taking its toll financially on a lot of European countries, you need to keep that in mind when placing your Forex and Binary Options trades.

You may be wondering just which trades you should be placing your trading funds on in the coming weeks and months, and it is looking more and more likely that the financial, retail and house building sectors are likely to be the most profitable ones in the US.

However, if you occasionally place the odd Forex related trade then look at coupling up the US Dollar with a range of other currencies as the USD is currently very strong in the money markets and could continue to strengthen. The Euro is moving in the opposite direction and it may be worth placing some trades on the Euro dropping in value too.

As soon as an interest rate rise is announced and put into place expect the US Dollar value to move instantly, so keep your ears to the ground and your eyes peeled for that announcement as it is likely to come sooner rather than later, and the money markets as usual will be and are always very quick to react on any such news. Is the Time Right for a US Interest Rate Rise?