Global macro overview for 29/10/2015:
After the yesterday's hawkish FOMC statements the odds for the December rate hike are back on the table with the probability of 49%. The difference between the September and October FOMC meetings is as follows:
- the Fed has increased the rate of household and business spending from moderate to solid
- the recent global economic and financial developments line was reduced and used as a summary of the events that the Fed will be monitoring
- the most important lie in statement: whether it will be appropriate to raise the target range at its next meeting
The market consensus was the Fed not rising the rates this year, so this remarks has send US Dollar to surge higher across the board as the probability of the next month rate hike is unexpectedly rising. The US Dollar index has been seen trading higher after the FOMC statement and currently is at the level of 97.40, a 70 pips higher than the recent technical support at the level of 96.71. The next resistance is seen at the level of 98.32.
