It was another blow to crude oil prices yesterday as we learned from the Energy Information Administration (EIA) that U.S. crude oil inventories had risen by 14.4 million barrels the previous week. Since the beginning of the week, WTI oil prices have given up more than 7%.
To no great surprise, the U.S. Federal Reserve left its key rate unchanged yesterday. However, hints pointing at monetary tightening in December were increasingly numerous within the statement, particularly the clarification that inflationary pressures are gaining strength. The likelihood of a key rate increase of 0.25 points next month now stands at 78% compared to 67% before the announcement. It’s a good bet that these odds will climb further if U.S. job data released tomorrow do not disappoint. In this light, placing orders with your trader may prove a wise decision.
To wrap up, the pound sterling is soaring this morning after a decision by the London High Court that Parliament must give the green light before the government invokes article 50 to trigger Brexit next year. Yet another element that leads us to believe that leaving the EU will not be an easy task and is far from a settled matter.
