U.S. central bank's plan to start shrinking its massive balance sheet, which ballooned to $4.5 trillion in wake of the financial crisis, will definitely be a good effort to boost the economy. But it will be more interesting to see that how the Dr. Copper would feel after eating a chocolate coated bitter pill tonight.
On analysis of the movement of the base metals futures price during the last two sessions, I conclude that the base metals will be feeling gloomy on one hand while precious metals may feel bloomy on the other, after the announcement of final comments from the U.S. Central Bank on June 27th, 2017.
If this bitter pill is given without hawkishness, it would be too effective to remove the fatigue from the base metal prices which have just overcome with a bounce in WTI crude oil (black gold). But, if this dose is given along with a little bit of hawkish tone, it will definitely be impacting the strength of US dollar adversely.
Hope this pill would not create any adverse reaction for the Dr. Copper. This dose may create a lot of volatility ahead; therefore, hedging along with stop loss orders may be the best choice for trading tonight.
Have a nice trading time.
