Crude Oil Supply Disruption in Cases of Corona Virus Outbreak
The Fed has released a meeting (minutes of meeting) issue of January 2020. At the meeting, Chairman Jerome Powell and the other members decided to defend the benchmark interest rate at 1.5-1.75%.
Participants of the FOMC meeting saw the economic activity better compared to the previous and the current monetary policy of keeping the interest rates in the next month is still good enough to run.
Australian dollar’s currency slumped to 11 years through data indicating domestic unemployment rates jumped more than expected in January from a nine-month low, increasing the expectation of further monetary policy stimulus. The unemployment rate in Australia is now soaring to 5.3 percent because more people are going to find work.
The British currency, Sterling slumped to 1-1/2 a week low after the senior EU adviser on Wednesday stated that the bloc would determine Britain’s access to the financial markets in the same way that it has for Japan and the United States.
The U. S dollar index rises, hovering closer to the top of the 9-1/2-month hit in previous sessions after China reported another decline in Coronavirus cases and the expectation of the Chinese stimulus with interest rate cuts to counter the economic slowdown. Currently, without a decline in the benchmark interest rate, investing in the US dollar is still profitable. This makes US dollars a constant choice of investors.
Attention investors will remain on a series of data from the European zone economy, European Central bank accounts meeting monetary policy and ECB’s vice President De Guindos speech in front of the U.S. and Fed Barkins speech
The world crude oil prices jumped to a 3-week peak as the market worried about the crude oil supply disruption and the demand for tender demands after a sharp decline in cases of Coronavirus in the outbreak center in Hubei province, China.