Fed: to Cut or Not to Cut

Daily Analysis - 17/09/2019

The fed might not cut rates this week


Monday's rising oil improved the possibility that the Federal Reserve may not have in its plans to cut the interest rates. The central bank reduced its benchmark by a quarter-point at this week’s Federal Open Market Committee gathering. Now the prospect of extended cuts has become more limited. On Monday Investors in the fed funds futures market were rating a 34% probability that the Federal Reserve will not raise the interest rates. The U.S chief economist at S&P Global Ratings, Beth Ann Bovino said that “While the push-through of inflation from oil prices to core prices is small, the jump in overall prices, in combination with signs that core inflation is already heating up, may make it more difficult for the Fed to cut rates further.”

On Monday the dollar index almost gained 0.5%

On Monday, correlated assets with oil remained strong while the greenback got generally supported as the recent attacks on Saudi oil plants and the probabilities of full military conflict in the area held crude rates strong and connected currencies. Kyosuke Suzuki, the director of foreign exchange at Société Générale said “Aside from big moves in oil prices, currencies and bonds are relatively calm, as investors are still trying to gauge the extent of political risks,” On Monday the popular dollar index increased by almost 0.5% to 98.624.


Apple’s new iPhone to be the most demand model in China

Apple’s more economical iPhone 11 seems to be the most demanding pre-ordered model in China and Chinese consumers are anticipating the phone following the company's new pricing. The cheaper iPhone 11 has got Chinese buyers pleased. Now the consumers must wait for the 64GB and 128GB iPhone 11 to be released near to October 3, which is approximately two weeks after the release date. Delivery times can usually provide a sign of what the more popular models are.


European stocks looked weak on open

On Tuesday Oil gave back some of yesterday's large profits following indications from the US that it plans to release crude supplies. However, the fears of a military encounter held traders’ confidence moderately depressed.

The FTSE 100 was about 5 points below at 7,315, CAC 40 was pushing 1 point downward to 5,600 while the DAX was anticipated to move around 5 points below to 12,374.


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