According to the latest macroeconomic reports coming from the USA, the economic health of America leaves much to be desired and has been raising a lot of concerns and doubts among international experts. Indeed, despite the propaganda spread around the globe by the American authorities, the state of affairs in the world’s biggest economy is not as good as it is claimed to be. Most likely, this is the very reason why the Fed is still reluctant to raise the interest rates, Masterforex-V Academy experts say.
The U.S. economic slowdown seems to be of long-term nature. According to the latest update, the US Economic Surprise Index has been below zero since the beginning of 2015. It should be noted that the mentioned index reflects the macroeconomic stats against analyst estimates and expectations. On top of that, the index has been in the red zone over the longest period in its entire history.
On taking a closer look at US Economic Surprise Index, we can see a pretty steady bearish tendency, which is essentially the key point of concern for the international expert community.
This leads us to believe that the Fed’s initiative to raise the interest rate is now questioned.
Keep in mind that the U.S. GPD report for Q3 2015 is scheduled for this week. The analyst estimates are 1,5%. If that’s the case, the y/y slowdown is going to reach 240 basis points, which will bring the chances of a near-term interest rate hike down to zero or close to it.
As for the USD index, the price has just broken a major resistance level – the top of the descending MF sloping channel, Masterforex-V Academy experts report. The index is currently trading close to 96,99. The closest upward target is 98,40. As for the major levels of support, these are the bottom of the ascending MF sloping channel and MF pivot 93,85, as shown in the chart below, courtesy of Masterforex-V Academy.
