The US dollar is holding onto the previous session's gains as European markets open. On Wednesday, the greenback posted its sharpest rebound since June, following comments from senior Federal Reserve officials that tempered the optimism sparked by last week’s 50-basis-point rate cut. At that time, expectations for further easing had grown, with some forecasting another half-point cut by year-end. However, recent statements from Fed officials have not supported these dovish expectations. On Wednesday, Governor Adriana Krugler refrained from signalling any further rate cuts, prompting some analysts to suggest a lack of consensus among US policymakers. Against this backdrop, Jerome Powell’s upcoming remarks, scheduled for later today, will be closely scrutinized by traders eager for insights into the central bank's next steps, potentially adding to dollar volatility.
Source: ActivTrader
Brent oil prices fell more than 2% in early European trading after reports emerged that Saudi Arabia is planning to ramp up production. On Wednesday, it was revealed that Saudi Arabia, the world’s largest oil exporter, intends to move away from its $100 per barrel price target, laying the groundwork for increased output. Additionally, reports suggest that Libyan oil may soon return to the market, further boosting supply. At the same time, markets are increasingly sceptical about the effectiveness of Beijing’s stimulus measures in reviving China’s struggling economy, which has dampened hopes for a rebound in global crude demand. With rising supply and uncertain demand, oil prices may face further downward pressure in the near term.
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.