FX.co ★ Global macro overview for 30/08/2016

Global macro overview for 30/08/2016:

The echoes of the Jackson Hole meeting are still present in the financial mass media. Recently, US FED vice chair Stanley Fischer spoke to Bloomberg TV about the possibility of the September interest rate hike. His answer regarding this topic was: central banks can't say "one and done" on rate hikes. This is another hawkish statement from the FED policymaker, released just after Friday's Jannet Yellen speech. Moreover, Fischer said the employment is rather close to full, the FED is closely monitoring the markets and it does not plan to introduce a negative interest rate anytime soon as they are very difficult for savers. In conclusion, hawkish remarks from Fischer go hand in hand with Dudley's remarks from last Friday, despite a rather dovish Jannel Yellen speech. It is clear that some FED officials have a different idea regarding the period of the low interest rates than FED Chairperson Yellen.

Let's now take a look at EUR/USD technical picture in the 4H time frame. The market is still trading near the lows as bears have re-gained control after Yellen's speech in Jackson Hole. The EUR/USD pair has broken below the important support at the level of 1.1243 and now it is trading close to the 50% level of the trading range. The next support is seen at the level of 1.1127.