Global macro overview for 31/08/2015:
The annual central bankers' meeting in Jackson Hole US ended last week. Bankers from around the globe were present at that conference to discuss the short-term prospect of the long-anticipated interest rate hike by the Federal Reserve Bank (Fed). The fear of Fed's first in 6 years tightening of the monetary policy was lower than some central bankers had expected (i.e. Agustin Carstens from Mexico). Many participants disagree about that issue, but Yao Yudong, head of the People's Bank of China Research Institute of Finance and Banking, was the most opposite to any rate hike. Nevertheless, the overall message to Fed was very clear: the world is expecting it to raise the rate soon, despite the potential further US sollar straightening, capital outflows from some emerging market and changes in prices of traded goods. Please notice the first rate hike might come as soon as in September 2015 or December 2015.
The technical picture of the EUR/USD did not changed much since last Friday as the Jackson Hole revelations might still be digesting and the market might be expecting the NFP jobs report later this week.
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