The euro, which fell nearly 1% yesterday versus the U.S. dollar after the Federal Reserve boosted rates by a quarter of a point, is on the decline again this morning.

The Fed also hinted at several more interest rate hikes in 2017, which spooked global bond markets and sent the dollar surging against nearly all major currencies. From Bloomberg:

The dollar gained 1.1 percent to $1.0421 per euro, the strongest since January 2003 as of 7:18 a.m. in New York. It advanced 1 percent against the yen after reaching the highest level since February.

Britain’s pound fell 0.7 percent against the U.S. currency after the BoE said its inflation target is more attainable than previously predicted.

Meanwhile, Deutsche Bank analyst Jim Reid points out how different this currency action is from the one following last year’s rate hike:

People in my profession have perhaps been guilty of over analysing the Fed in recent years when every small nuance was over examined when in reality they really haven’t done much over this period. However last night’s statement and press conference was full of interesting remarks and certainly landed on the hawkish side with the dots edging up with the median dot now showing 3 hikes for 2017 rather than 2 beforehand. Last night’s meeting broke a trend as prior to this, the last six FOMCs have seen treasury yields fall with the last seven seeing the dollar fall against the Euro. Not this time. The meeting fits in with our view that markets are vulnerable to a bond yield spike next year. Rates vol could be the main talking point of 2017.

The Guggenheim CurrencyShares Euro Trust (NYSE:FXE) fell $1.00 (-0.98%) to $101.32 per share in premarket trading Thursday. Year-to-date, the largest bull euro ETF has declined 3.83%.

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