This week, financial markets have been waiting for the FED’s decision and the press conference of Jerome Powell. The interest rate was left unchanged, just as most market participants expected. FED’s chief again stressed the importance of price stability and justified the restrictive monetary policy.
As a result, stock indices plummeted along with Crude oil and major currencies against the US dollar. Bond markets consolidated not having reacted to a relatively neutral statement of FED’s governor.
Brent and WTI futures have corrected from recent peaks ahead of the FOMC meeting due to active profit-taking. That’s a classical speculative pattern - overheated markets often correct ahead of important news announcements.
After long bullish runs, markets usually tend to consolidate unless there are rapid changes in the markets conditions, so we may expect to see rapid pullbacks for Brent and WTI from local dips.
As a result, stock indices plummeted along with Crude oil and major currencies against the US dollar. Bond markets consolidated not having reacted to a relatively neutral statement of FED’s governor.
Brent and WTI futures have corrected from recent peaks ahead of the FOMC meeting due to active profit-taking. That’s a classical speculative pattern - overheated markets often correct ahead of important news announcements.
After long bullish runs, markets usually tend to consolidate unless there are rapid changes in the markets conditions, so we may expect to see rapid pullbacks for Brent and WTI from local dips.