Global macro overview for 25/05/2017
May 25, 2017 11:58 amVideo
Latest News
- Technical Analysis – EURGBP brings bullish scenario back to the table April 22, 2024
- GBP/USD. April 22nd. The bulls continue to retreat April 22, 2024
- Can Australian CPI data lift the struggling aussie? – Preview April 22, 2024
- Meta reports Q1 earnings after new AI model – Stock markets April 22, 2024
- Weekly forecast based on simplified wave analysis for GBP/USD, AUD/USD, USD/CHF, EUR/JPY, AUD/JPY, and US dollar index on April 22, 2024
- Technical Analysis – GBPUSD tumbles to 5-month low April 22, 2024
- Weekly forecast based on simplified wave analysis for EUR/USD, USD/JPY, GBP/JPY, USD/CAD, NZD/USD, and Gold on April 22nd April 22, 2024
- Video market update for April 22, 2024 April 22, 2024
- Weekly Technical Outlook: 22/04/2024 – Dollar index, USDJPY, EURUSD April 22, 2024
- Market Comment – Risk appetite returns as geopolitical fears calm April 22, 2024
- Weekly Technical Outlook – Dollar index, USDJPY, EURUSD April 22, 2024
- Forex forecast 04/22/2024: EUR/USD, GBP/USD, USD/JPY and Bitcoin from Sebastian Seliga April 22, 2024
- USD/JPY: trading tips for beginners for European session on April 22 April 22, 2024
- Technical Analysis – EURUSD consolidates after decline pauses April 22, 2024
- GBP/USD: trading tips for beginners for European session on April 22 April 22, 2024
- EUR/USD: trading tips for beginners for European session on April 22 April 22, 2024
- Hot forecast for EUR//USD on April 22, 2024 April 22, 2024
- Technical Analysis – EURJPY rallies ahead of key market events April 22, 2024
- Trading plan for GBP/USD on April 22. Simple tips for beginners April 22, 2024
- Trading plan for EUR/USD on April 22. Simple tips for beginners April 22, 2024
The FOMC Meeting Minutes have revealed the dovishness among the policymakers. Despite the fact, that FED seems content to hike rates again in June, the minutes reflected more uncertainty over the trajectory for rates. The main reason for this change in the mood is uncertain inflation outlook. Some policymakers are becoming concerned that the unemployment rate is running below the full-employment level which could pose upside risks to inflation. Other policy members, in contrast, keep seeing the downside risks to the inflation outlook, particularly given the low inflation print and still-low measures of inflation expectations. Moreover, their other concern is the possible labour market tightening without giving rise to inflationary pressures. This is why this sentence from the minutes: “prudent to await additional evidence indicating that the recent slowing in the pace of economic activity had been transitory” was the key clue regarding a further wait-and-see approach made by FED policymakers and the main reason of the lack of the hawkish tone in the minutes. In conclusion, the June rate hike is still possible, but further rate hikes are now slightly less possible as the FED will await further economic data to justify the hike later this year.
Let’s now take a look at the US Dollar technical picture on the H4 time frame. Since the FED interest rate hike in March, the US Dollar index keeps making lower highs and lower lows. Moreover, any attempt to rally is quickly faded by the bears, so the price is now quite close to the very important support at the level of 95.91. This was the level from the US Dollar surged after the presidential election campaign was won by Donald Trump. The index is trading below all of the moving averages and the momentum indicator is pointing to the downside. The next immediate support is seen at the level of 96.80 and the next immediate resistance is seen at the level of 97.48.
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
Related Posts: