Friday Market Snapshot
WTI Crude Oil
The aftermath of the Fed’s monetary meeting has been bearish for risk assets so far, even though Treasury yields haven’t risen too much following the central bank’s slightly hawkish statement. The Fed didn’t mention the recent turmoil in financial markets yesterday, and that could mean that the “Fed put” under the stock market is much deeper than bulls hoped, and until the economy remains on track, Jerome Powell will keep on tightening.
Stocks markets are lower today globally, although the losses are muted, and the recent lows are not in any kind of danger for now. Commodities are in more trouble, with oil continuing its decline, gold hitting a new one month low, and copper also falling below key support.
WTI crude oil plunged below the $60 level, as we expected, and now the crucial commodity is testing the long-term support zone just below that price level. Traders playing the short side now face a heightened correction risk, and a stronger short-covering rally could be ahead next week, with the $65 level being the obvious target for that.
EUR/USD, 4-Hour Chart Analysis
The Dollar is once again in the center of attention in forex markets, and the Greenback is drifting towards its recent high as measured by the Dollar index and the EUR/USD pair. The latter is now only slightly above its August lows, and the common currency is looking ready to hit new 16-month lows after the recent failed rally attempt.
While the USD pulled back just after the midterms,