Global Macro Overview for 29/03/2016
Global overview for 29/03/2016:
Fed Chairperson Janet Yellen is due to speak today on the Economic Outlook and Monetary Policy at the Economic Club of New York luncheon and her comments are likely to be followed very closely by investors. Currently, the markets are not very convinced that the Fed will hike interest rates again as it did in December 2015. The Fed Funds futures market sees only a 12% probability of an April meeting hike, but it might change after today's remarks. In conclusion, if we take into the account the hawkish tone from a number of other policy makers over the last week, any change in tone in Yellen's speech from dovish to more hawkish might change the current expectations dramatically. That is the main event of the day, worth to keep an eye on.
Let's now take a look at the EUR/USD technical picture on the 4h time frame. After touching the 38% Fibo at the level of 1.1144, the market bounced, but it wasn't strong enough to break above the 1.1218 resistance level. Currently, the market is in the range zone and we should wait for one of the mentioned levels to be violated in order to determine further price movement with greater probability.
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