Global macro overview for 24/08/2016:
There is an increasing level of uncertainty weighing on trader's sentiment just before the Jackson Hole economic conference. The financial mass media were surprised to find out, that majority of regional FED banks voted for discount rate hike according to the latest FED Meeting Minutes. Eight regional banks sought to hike rate as Dallas and Philadelphia joined in others who had previously supported an interest rate increase. This might be the first signal that many regional Federal Reserve banks are ready for another interest rate hike and many of global investors will be on the lookout for possible clues and hints regarding the timing of the next hike from the FED at the incoming meeting. In conclusion, the FED Chairperson Jannet Yellen should give her speech at Friday afternoon and this will be the main economic event of the week.
Let's now take a look at the US Dollar index technical picture at the daily time frame. The market has bounced from the technical support at the level of 94.15, but it wasn't strong enough to break out above the technical resistance at the level of 94.96. This horizontal sideways price action is being expected during the rest of the week as the trades are waiting for the final conclusions of Jackson Hole conference.
