Global macro overview for 21/08/2018
The macroeconomic data publications at the beginning of the week are light, but one of the most important information recently is the statement of Donald Trump being part of the interview given to the Reuters news agency. In an interview with Reuters journalists, the President of the United States openly criticized the Federal Reserve for the current tightening of monetary policy and interest rate increases.
According to Donald Trump, the Federal Reserve should support the actions taken by him and decisions aimed at improving the state of the American economy. Gradually raising interest rates in the current business cycle is inappropriate, in his opinion, and he intends to criticize the Fed until such a failure to stop the process of tightening its monetary policy.
This is not the first time that the American president negatively refers to the activities of the central bank, which in its assumptions should be independent of political pressure. Trump then stated that he was not “satisfied with rate hikes” referring to the first months of the term of office of Jerome Powell, whom he nominated himself to take over Janet Yellen’s chair.
“We are conducting very strong and fruitful negotiations with other countries and we are going to win. During this period, however, we need a little support from the FED. Other countries have an adjustment policy, ” said Trump in an interview with Reuters.
In response to the words of the American president, the local stock market was red before closing Monday’s session. The US dollar followed in its footsteps, so let’s take a look at the DXY technical picture at the H4 time frame.The market has drop towards the technical support at the level of 95.44 and now this level is being tested. In a case of a further sell-off, the next technical support is seen at the level of 95.15.