Ipek Ozkardeskaya
Swissquote Bank Ltd
The US yields pushed higher and the dollar rally gained further momentum yesterday, as investors continued to surf on the idea that Donald Trump’s pro-growth policies and tariffs would boost inflation in the US and limit the Federal Reserve’s (Fed) capacity to ease the monetary policy as much as previously anticipated. All eyes are on the US inflation data, today. October figures won’t tell much about the Trump effect on consumer prices, but the higher the numbers, the lower the December cut expectations. And the latter is supportive of the US dollar.
In energy, the barrel of US crude is testing the $68pb offers to the downside on sluggish Chinese, global demand, ample supply from non-OPEC countries, and the absence of fresh tensions from the Middle East. Add to that the fact that OPEC cut its oil demand forecast for fourth consecutive month this week, and you have a comfortably bearish picture in crude oil. Sentiment is mixed for oil stocks, however, which feel the comfort of oil-friendly Trump taking over the reins of the country.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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