FOMC left the rate unchanged, WTI responds with a hike

February 1, 2016

A decision on federal funds rate was supposed to be taken at yesterday’s FOMC meeting, which was held on a cautious note. The liftoff was postponed as expected. Committee officials are pointing out a need for a more gradual monetary schedule as the tightening access to liquidity may further arrest the recovery of the world’s economy.

The decision has sent the U.S. stocks in the red zone with Dow Jones dropping by 1.38% (222.77 points) at the session’s closing. S&P declined by 20.68 points (1.09%) to 1882.95. Nasdaq Composite suffered the most tumbling by (2.18%) to 4468.17 points with gloomy corporate data from the Silicon Valley. Apple reported that after a 12% drop in revenue in Q4 2015 the growth in sales averaged at 4% in Q1 2016. YoY growth averages only at 2% which raises concerns over further demand for Apple products. Company stocks slid by 6.57% to 93.42 on these news.

Mixed data released yesterday made WTI grow by 3%. However, this was the first time from December when crude’s rally had no positive impact on stock markets. Russian Ministry of Energy reported that they consider an option to cooperate regarding output levels with OPEC members. Meanwhile Saudi Oil Minister Al-Naimi said that the global supply may exceed the demand by 2M barrels daily and market will probably need time to ease the glut and return prices to reasonable levels.

EIA report posted yesterday showed that despite the cold season and the U.S. companies’ dumping price wars, crude inventories rose by 8.4M barrels almost by two times exceeding the estimate of only 3.3M barrels increase. Today’s session started with Crude dropping by 1.19%, currently hovering near the $32 level.

Publication source
Tickmill information  Tickmill reviews

October 21, 2016
EUR/USD remained unchanged after the ECB
The price maintained its bearish tone on Thursday. The EUR/USD pair stayed around its recent lows during the day. The euro slightly strengthened towards 1.1000 ahead of the US opening. The 50-EMA limited the euro recovery in the 1 hour chart...
October 21, 2016
Decisions on QE Postponed until December
Asian stock markets are narrowly mixed, with Japanese bourses managing marginal gains as the Yen falls against the Dollar. Stock futures in the U.S. are down...
October 21, 2016
EURUSD at $1.09, but declines could be limited
The ECB monetary policy meeting yesterday saw the euro give up its intraday gains to close on a bearish note. As Draghi signaled that the central bank would need time to assess the monetary policy situation...

Vantage FX Rating
Fort Financial Services Rating Rating
Grand Capital Rating
HYCM Rating
Larson&Holz IT Ltd Rating

Beeoptions Rating
TopOption Rating
Grand Option Rating
OptionFair Rating
TropicalTrade Rating
EZTrader Rating