25.02.2019: Oil prices plunge amid Trump’s remarks (USD, Dow Jones, Bitcoin, Brent)

25.02.2019: Oil prices plunge amid Trump’s remarks (USD, Dow Jones, Bitcoin, Brent)


The appetite for risky assets was boosted
by hopes that the United States and China
will settle down the trade dispute in the
nearest future.
Therefore, demand for safe-haven assets decreased.
The US dollar index that tracks movement of
the American currency against other majors
is losing ground amid such sentiment.
The index is moving in a downward trend, having
plunged to 96.40 earlier in the day.
At the same time, the stock indices have gathered
upward momentum.
The US and European stocks hit 4-month peaks.
At the opening of the American trading session
the Dow Jones Industrial Average was near
26,000 points.
The US stock indices are rising ahead of the
Fed’s Chair appearance.
Jerome Powell will deliver speeches thrice
this week: tomorrow, on Wednesday, and on
Friday.
And each time he is likely to reiterate that
the interest rate will not be changed as fast
as last year.
As a rule, such comments entail a rally in
stocks and bonds’ yields.
Meanwhile, a rise in the appetite for risk
did not influence cryptocurrencies.
Recently, bitcoin has managed to reach the
psychological level at 4,000 dollars, but
shortly after that it plunged by 10%.
Probably, a fall in the most popular cryptocurrency
started as investors fixed their profits.
Crude oil is also a popular trading asset
today.
Donald Trump’s comments have influenced
the oil market.
The US President appealed to OPEC to limit
a rise in oil prices.
His remarks triggered a crash in Brent quotes.
This benchmark plunged by 180 pips from autumn’s
level to settle at 65.50 dollars per barrel.
It seems that only buyers are able to make
profits on the stock markets today.
Will the situation change tomorrow?
We will answer this question in our next news
editions on InstaForex TV channel.
See you tomorrow!

Leave a Reply

Your email address will not be published. Required fields are marked *