Global macro overview for 06/07/2016:
The FOMC Meeting Minutes for the month of June will be released today at 06:00pm GMT and this is what is to be expected from the US policy makers in the statement. We expect that the Fed will need to further scale back its planned interest rate path at the upcoming FOMC meetings. The current plan was to introduce two more interest rate hikes this year, but the key thing to watch in the June minutes is how the Fed's officials assessed the recent slowdown in US data, particularly the labor market, and how concerned they were about adverse global spillovers. In conclusion, the overall tone is likely to be cautious and dovish, although markets have moved further to price in some chance of a rate cut by December.
Let's now take a look at the US Dollar index before the FOMC Meeting Minutes release. The market bounced from the 100 DMA and from technical support at 95.32 level. Currently, bulls are in control over this market and if the technical resistance at the level of 96.72 is violated, then another higher high in the overall sequence will be made.
