Global macro overview for 22/01/2018

The US Congress has failed to pass legislation on lengthening public administration finances, and from Saturday, federal employees can not go to work (for which they will not be paid). The weekend talks did not bring results, but the Senate is expected to return to the debate today at 05:00 GMT. Republicans and Democrats in mutual struggle want to get as much as possible for their side in terms of budget spending, but this childishness on the market is not impressive yet. A few days of administrative paralysis is not a big problem - in 2013, the offices did not operate for 16 days, which lowered the economic growth in this quarter by 0.3%. It's only if it's taken longer, the USD has nothing to fear. However, press reports indicate that both sides are not far from agreement. Therefore, after the initial weakening of the dollar at the opening of trading on Monday, now there is no trace. Despite this, some distaste remains, and this will block the dollar and adds to the general reluctance of investors to currency in early 2018.

Let's now take a look at the US Dollar Index at the H4 time frame. The market is still in consolidation mode as there was almost no reaction to the recent US news. The nearest technical support is seen at the level of 90.11 and the nearest technical resistance is seen at the level of 90.98. Please notice, the momentum indicator is still hovering around its fifty level, so there is still a chance for another leg down in this market.


The material has been provided by InstaForex Company -