A Hawkish Fed sends Dollar Index to new Highs

Last night Federal Reserve of America hiked the interest rate by quarter of a percentage point as expected along with a strong hawkish commentary. A 3 time rise of interest rate in the next year and similar pattern till 2019 was the forecast by the Fed which sent the equity as well as the commodity markets spiraling down with Dollar index the key beneficiary gaining over 1%.
Since morning yet again the dollar index is gaining momentum as the day progresses with a hike of 0.43% at 102.47 last checked during the opening hour of European trading session.

Now what lies in store along the path with a Higher Dollar index?  its precious metals as well as emerging markets which are feeling the heat of a stronger dollar with Asian markets closing in red with substantial cuts excepting Japan which traded higher on account of a weaker yen, India trading almost flat and European markets trading modestly higher with a positive bias, also American index futures showing a hint of green too.

This suggests fund flows into Developed markets rather than Emerging markets, which was earlier vice versa in this year with EMs getting most of the attraction around the globe.

Dollar index technically has room for more upside with gains possibly facing resistance around 102.81 level according to the bullish trend line where as a breakout above this level opens up the corridor towards 104 mark.
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