28.09.201609:58 Forex Analysis & Reviews: Global macro overview for 28/09/2016

Global macro overview for 28/09/2016:

San Francisco Fed President John Williams said in an interview at his bank's headquarters on Tuesday, that The Federal Reserve can raise interest rates without threatening the U.S. economic recovery. "It is getting harder and harder to justify interest rates being so incredibly low given where the US economy is and where it is going," the policymaker noted, which is a rather hawkish statement. Moreover, he sees a significant difference of view between the Fed and the latest dot plot revealed last week. According to Williams, Jannet Yellew is the right person to find the way forward, and he expects Yellen to stay until term ends in 2018 no matter who becomes the next US president. In conclusion, hawkish comments from Williams are another clue that no matter who will win the presidential election, the Fed may increase the interest rate in December anyway.

Let's now take a look at the EUR/USD technical picture on the 4H time frame. After a failure at 1.1283, the market took out the technical support at 1.1191 and now it looks like the bears are in full control of this market. The next support is seen at 1.1120.