Global macro overview for 15/12/2016:
Just as widely anticipated, the US Federal Reserve raised the interest rates from 0.50% to 0.75% yesterday (all 103 economists surveyed by Bloomberg forecasted a hike). At the press conference, the FED Chair Jannet Yellen said the votes were unanimous and gradual policy path plan would support 'some further strengthening' on goals. Moreover, she noted that the FED policy remains accommodative as inflation has accelerated since earlier this year. This is why the FED projects three more hikes in 2017. The near-term risks to the economic outlook appear roughly balanced, household spending has been 'rising modestly' as the FED sees a slightly higher pace of growth and lower unemployment. In conclusion, the statement offers many clues about what comes next and it is pretty hawkish. However, the economic comments are not that much changed, except the increased positive tone regarding the job market.
Let's now take a look at the US Dollar index technical picture on the monthly time frame after the FED interest rate decision and economic projections. Based on very simple Fibonacci techniques and basic Elliott Wave Principle labeling, we can clearly see the impulsive move from the lows set in 2007 has not been completed yet. The most probable price cluster that would act as a target for the price is between the levels of 108.39 and 108.72. It still looks like this is where the price will be heading in 2017.
From www.instaforex.com http://ift.tt/2gEdBcC
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