WTI Crude Oil Rallies with Gold Prices.

CRUDE OIL

Different assets rallied across financial markets in the past 24 hours in a synchronized systemic move, including the WTI crude oil prices that rallied 5 percent on Wednesday in the best daily move in over 4 months. As the USD and the UK 30-year government bond yields fell, oil alongside gold and S&P gained 500 futures.

The recent market-moving event originated in the United Kingdom. The Bank of England (BoE), in a limited amount, effectively restarted quantitative easing, notwithstanding the highest inflation in years.

The markets punished the Sterling as it briefly hit a record low on Monday.

Crude oil is closely linked to the move of the global business cycle. After the BoE’s action, global government bond yields dropped, even in the United States. This showed a dovish move in monetary policy expectations. Markets went from pricing in almost 2 Fed rate hikes in 2023 to less than 1. Less hawkish central banks could reduce global growth slowdown bets.

If Asia-Pacific markets extend Wall Street’s rosy session, ten WTI could enjoy another positive day. On the other hand, Fed policymakers may provide the possibility of a pivot or a measure like the BoE did along the way, which could set crude oil up for disappointment.

This Post Has 19 Comments

  1. NormanVaf

    farmacia online espaГ±a envГ­o internacional: mejores farmacias online – farmacia online envГ­o gratis

Leave a Reply

Contact Us

Disclaimer

Forex, Crypto, Options, and Binary Options have both large potential rewards and large potential risks. Therefore, before investing or trading any of the assets, ensure you are aware of and willing to accept the accompanying risks. Do not trade money you cannot afford to lose.

All Rights Reserved. None of the content of this website can be published elsewhere by any means without the prior consent of the owner(s). Please, check our terms & conditions and privacy policy before continuing to use this website.

This website and its owner(s) are not in any way liable for any incurred loss, whether caused by the information provided on this website or otherwise. The use of this website, including the content and information provided, is the user’s sole liability.