Clearer Picture Of The Federal Reserve’s Intentions
The National Bank of Canada | Nov 03, 2016 09:36AM ET
It was another blow to crude oil prices yesterday as we learned from the Energy Information Administration (EIA) that U.S. crude oil inventories had risen by 14.4 million barrels the previous week. Since the beginning of the week, WTI oil prices have given up more than 7%.
To no great surprise, the U.S. Federal Reserve left its key rate unchanged yesterday. However, hints pointing at monetary tightening in December were increasingly numerous within the statement, particularly the clarification that inflationary pressures are gaining strength. The likelihood of a key rate increase of 0.25 points next month now stands at 78% compared to 67% before the announcement. It’s a good bet that these odds will climb further if U.S. job data released tomorrow do not disappoint. In this light, placing orders with your trader may prove a wise decision.
To wrap up, the pound sterling is soaring this morning after a decision by the London High Court that Parliament must give the green light before the government invokes article 50 to trigger Brexit next year. Yet another element that leads us to believe that leaving the EU will not be an easy task and is far from a settled matter.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.