Brexit, trade wars, slow economic growth and heightened tensions with Russia, not exactly the ideal environment for a central bank to consider raising interest rates. Yet, that's exactly what the Bank of England is doing and on Thursday, they may signal and intention to do just that at the next meeting in May.
U.S. futures are coming under pressure once again ahead of the open on Thursday, as investors continue to display an anxiety about the path of interest rates against a backdrop of escalating trade conflicts.
You can talk all you want about rising U.S. oil production, but the fact is that U.S. crude oil supply is below average. The Energy Information Agency, in its weekly report, said that U.S. commercial crude oil inventories fell by 2.6 million barrels to 428.3 million barrels, which the EIA says are the lower half of the average range for this time of year. This is happening even as U.S. oil production reportedly increased to 10.047 million barrels of oil a day.
The Federal Reserve raised rates a quarter point as expected this afternoon. However, they continued to project only three hikes this year while many speculated a fourth will be added. Citing a stronger economic outlook in the face of dismal February data, they raised their growth forecast for 2018 and 2019. The Fed did increase next year’s rate-hike projections to three from two. But still, the U.S. dollar got hammered. We have been discussing the impact of perception for months now.
The dollar rebounded today against all major currencies as tomorrow’s FOMC Meeting comes into focus. This price action started early on poor reads from UK inflation and German and Eurozone Sentiment data.