FXStreet (Delhi) – Research Team at Investec, notes that the US Federal Reserve raised interest rates in the US by 0.25% taking the fed funds target rate to 0.25% - 0.50%, in what some media outlets are calling a signal that the financial crisis of the last decade is over. Key Quotes “While that seems a bit exaggerated it certainly is a milestone in the epic saga. Currency markets are not quite so enthused by Janet Yellen and her committee members, with currency moves quite modest. The Fed hike was largely priced into markets, with the very minor amendments to forecasts for both growth and the FOMC members’ future rate expectations, not altering markets’ own expectations for future moves . So not much changed from before the event.” “We got the 'dovish hike' that had been touted with Yellen stressing in the press conference the Fed are acting early and gradually to avoid falling behind the curve and triggering a recession by having to hike faster later on. The Fed managed the smooth no fuss hike they had been aiming for. After a brief period of US Dollar selling last night, the Dollar has made modest gains against major currencies and emerging currencies alike. We are still in a position where the market yield curve is pricing in less than the Fed is signalling, and this still means there is scope for further US Dollar strength in the coming months. But these moves may not come until next year in any size, as for now it is mid-December and near the end of the financial trading year for many Hedge Fund and Bank players - is there an incentive to pile into new positions and take risk so close to the end of the year?” For more information, read our latest forex news.