FX.co ★ Global macro overview for 07/01/2016

Global macro overview for 07/01/2016:

The yesterday FOMC meeting minutes showed that central bankers believed that economic activity expanded at a moderate pace. Those meeting minutes were from the crucial December 2015 meeting, when the US central bank made a unanimous historic decision to hike interest rates for the first time in almost a decade. Policy makers are planning to rise the interest rates gradually because they see the economic activity keeping on expanding at a moderate pace. The Fed officials have expressed concerns about inflation in the near term as the strong dollar and declining energy prices will still keep the inflation target under pressure. Nevertheless, the Committee expect the inflation to reach the target of 2% in 2018 with gradual gains in the coming years.

The US Dollar index did not manage to break out higher above the 99.30 resistance and now is slowly trading inside the trading range. The next support is seen at the level of 98.05.