In today's market insights, we delve into Citibank's oil price predictions, the evolving competition between Huawei and Apple, the Saudi Arabia-Tesla partnership, and the upcoming rate decisions from the world's major central banks.
Trade the USD on the extreme volatility
The Federal Reserve will make its monetary policy statement and announce the official rate on December 19, at 21:00 MT time.
The market anticipates the rate hike from 2.25% to 2.5%, as was suggested during November's meeting. If the Fed increases the interest rate, it will be the fourth rate hike in 2018. In addition, the tone of the statement by the Fed Chair Jerome Powell may provide the volatility to the US Dollar. During the last month, a few members of the Federal Open Market Committee pointed on the increased uncertainty regarding the effects of current fiscal and trade policies on economic activity and inflation. Also, they told not to underestimate the current trade tensions with China. These comments made traders worried. The current Fed statement is anticipated to shed light on its future monetary policy.
• If the Federal Reserve increases the interest rate, the USD will rise;
• If the Federal Reserve leaves the interest rate unchanged, the USD will fall.
It will be the hottest week of September, with four central banks’ meetings, five PMI releases, and a lot to trade.
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Oil prices are rising and Russia banned the export of its petrol. What's happening in the markets?
Today's main event for the markets is the FOMC Interest Rate Decision, where the US regulator is widely expected to keep the interest rate at the same level of 5.5%.