Global macro overview for 11/11/2016:
After the US presidential elections, the possibility of the FED interest rate hike by 0.25bps on 14th December is now 71.5%. Moreover, further tax cuts (promised by Trump during the campaign) and fiscal spending leads to higher inflation, and a reason why the fixed-income market is pricing in more FED hikes, starting with next month. After the flight to safe haven assets, now the US dollar gets a boost as it continues to rebound all over the board. Nevertheless, the future of Janet Yellen's chairmanship and the accommodative nature of FED monetary policy are in doubt, because there is the real possibility of a major shake-up at the Federal Reserve. As we know Trump during the campaign many times pointed criticism of the central bank's policies under Jannet Yellen's leadership and the December meeting might be the last one under the chair of Yellen.
Let's now take a look at the US Dollar index technical picture after the election is over. The massive rebound seen on the daily candle indicates the bulls have control over the market as we should see another breakout higher soon. The next resistance is seen at the level of 99.12, but it looks like the bulls might want to test the swing high resistance at the level of 100.48 before any meaningful correction will come.
