FX.co ★ Global macro overview for 20/08/2015

Global macro overview for 20/08/2015:

The yesterday's release of the FOMC meeting minutes showed that the most of the Fed members were in favor of a short-term interest rate hike; however, the economic conditions justifying that hike has not been met yet. The odds for an immediate September rate hike decreased from 50% to 40% and the next possible term for this decision is in December. Moreover, the minutes revealed that most members would like to see more evidence for a rate hike in the improving economic conditions, lower unemployment and increasing inflation to the target of 2%. So it looks like the Fed is continuing with its typical "wait and see" approach in regard to the rate hike and it does not look like something will change in the near future.

In reaction to the minutes release, the US dollar index DXY sharply fell after a failed test of the golden trendline and currently it is slowly approaching the support at the level of 95.91.