The Fed can start tapering already this November, oil is rallying pushing the Canadian dollar up! Jump in to know more!
OIL: hoping for a deal
This Thursday, at 15:00 MT time, OPEC+ will be holding a video conference aimed at regulating the global oil supply.
Why is it important?
Because the global oil market is in a crisis now: there is a huge oil oversupply which doesn’t seem to end any soon – unless Russia, Saudi Arabia, and the US (call it OPEC++) all agree to reduce their output, in line with other oil-producing countries.
How much of a reduction?
The market expects a figure in the ranges of 10mln bpd, which is roughly 10% of the current global oil production. This cut, and no less than that, is needed now to stabilize the oil market.
If a cut no less than 10mln bpd is agreed and delivered, it would be the best outcome; oil would definitely skyrocket – WTI, in particular, would break the $30 resistance. Indirectly, such an outcome would push the USD, inject more life into the Forex market, and boost the stock market as well.
If only a small cut is agreed or nothing is agreed at all, oil is likely to plunge as it would mean the no stabilization to the oil market would be delivered in the nearest future and no certainty about this future is to be expected from any side. Plummeting back to $20 and below is very likely in this case.
That day has come, guys! The Fed will hold a meeting at 21:00 GMT+3. It can be a highly impactful event. The markets expect the bank to hint about the timing of tapering.
A selloff in stocks stopped. S&P 500 has reversed up from the 100-day moving average. It should be the perfect time to buy the index.
Commodities (iron ore, oil) and commodity-linked currencies (AUD, CAD) surged. West Texas Intermediate has reached $75 a barrel, while Brent rose to the highest mark since October 2018.
Although Jerome Powell’s speech sounded hawkish on Wednesday, September 22, markets did not get scared and the main stock indices got bought back…
Turkey’s central bank governor was at a crossroads: to hold interest rates and take a risk to be fired like it was for three governors before him, or to comply with the president, to cut rates, and to risk the market. Let’s find out, how to react to the rate cut.