Global macro overview for 14/12/2016:
The most anticipated event of the month, the Federal Reserve interest rate decision, economic forecasts (07:00pm GMT) and press conference (07:30pm GMT) will be in the focus of all global investors today. The Interest rate hike from 0.50% to 0.75% is widely expected (almost certain), so now the most important question is how will today's revised economic forecasts stack up in the central bank's first official outlook since Donald Trump's election victory? The stock market response to Trump election is very bullish, mainly due to the expectations that Trump's administration will deliver a pro-growth policy mix via tax cuts, milder regulation, and infrastructure spending. Moreover, most of market participants assume that US economic growth will slow down from the 3.2% gain in Q3. The question is whether the FED has a different view? We will find out today at 07:00pm GMT.
Let's now take a look at the EUR/USD technical picture in the 4H time frame. The market is trading in a tight horizontal range between the level of 1.0602 and 1.0666 as it awaits the FED decision and economic projections. The outlook still remains bearish and there is still a chance that the parity level of 1.0000 will be hit before any meaningful larger time frame correction will take place.
From www.instaforex.com http://ift.tt/2gIcmhq
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