USD rallies, Oil falls – Eyes on US CPI data [Video]

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.

Author

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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