Global macro overview for 06/01/2016:
The FOMC meeting minutes will be released today at 07:00 GMT and they might unveil policy makers' insight into historic decision regarding interest rate hike. Almost a month ago, the US Federal Reserve ended a seven-year stretch of near zero rates with the first interest rate hike since 2008. The hike was 25bp and it was considered small. The current question market participants are asking is whether the next hikes will be gradual (like the first one) or more aggressive. This is a rather important matter because Fed Chair Yellen only clarified during her press conference in December that gradual does not mean mechanical and the Fed policy decisions are still data-dependent. In that case, any hawkish statements from the committee will likely boost the USD, and more dovish comments could deflate the USD and dampen more rate hike expectations in 2016.
The US Dollar index has broken above the technical resistance at the level of 99.30 (now support) and it is trying to test another technical resistance at the level of 99.98.
