Fed Rate Hike & Oil Inventories Drives Market

By Xtrade Academy - on December 19, 2018

It’s all about the Fed Rate Hike and Oil today. Among the high impact economic reports due for the day from the UK’s Consumer Price Index CPI, US Existing Home Sales, there are two other highly anticipated ones, i.e.  The FOMC’ Fed Interest rate decision at 19:00 GMT followed by the Press meeting at 19:30 GMT which is likely to set the pace for the near future trends. The tone is also going to reveal just how much influence President Trump’s criticism or warnings against quick successions of rate hikes impact the Fed’s considerations. Inevitably higher rates contribute to making the USD too strong.
The anticipation is to raise rates from 2.25% to 2.50% an increase of 25 basis point. Currently, only 68.9% of market participants believe rate would be hiked a drop from 80% where it stood for a while.
Wednesday’s Crude oil inventories from the EIA is also on tap. Yesterday, the API reported a build of 3.450million barrels the news did not fare well in an already oil saturated market causing prices to plummet to close at 46.60 earlier at EU market open it fell 0.09% before gaining momentum.
Oil: Is likely going to pick up till the report is released at 15:30 GMT.  At least to 46.97 then 47.15 before losing ground depending also on the rate hike.
Gold: Is being used as a hedge today however remains volatile between 1,249.40 – 1,255.30.
US 30: will likely is also likely to play on the Fed rate decision climbing now to 23, 779.50 then to 23,885
Global Markets:
Markets are trying to have a run before the US releases it rate decision. A high dollar market trading against the USD expensive which could weigh on stocks and pushing Emerging Markets to the brink.

  • US 30: Is to be seen ranging from 23,563.0 – 23,826.5 any breach up or down this would come as a reaction to the rate hike. likely to play on the Fed rate decision to climbing towards 23,779.50 and then maybe to 23,885.
  • Germany 30: Bullish at the EU open up 0.47% at the time of print 10:00GMT and traveling from10,749.33 – 10,799.06 hoping to take on gains for profit taking.
  • Italy 40: Was spotted 0.84% up to trade from 18,450.00 – 18,880.00 ahead of the day’s events. Jubilating, over the EU’s acceptance of the Italian budget.
  • UK100: Even the FTSE 100 forgot about its Brexit pains to recoup some losses. Upside to 6,765.80 if breached upside to 6,774 may be possible before knee-jerking set in.

Commodities:

  • Oil: Is likely going to pick up till the report is released at 15:30 GMT. At least to 46.97 then 47.15 before losing ground depending also on the rate hike.
  • Gold: Is being used as a hedge today however remains volatile between 1,249.40 – 1,255.30.

For further details, please visit Xtrade.com. You may also leave your comments below.

Related Links:
https://uk.investing.com/news/politics-news/in-nodeal-brexit-eu-would-keep-trade-flowing-for-limited-time-1409200
https://www.cnbc.com/2018/12/19/italy-and-eu-reach-budget-deal.html
https://www.cnbc.com/2018/12/18/fed-expected-to-move-forward-with-rate-hike-despite-trumps-scolding.html

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