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Oil Drops on US Shale Output | EU Increases Pressure on May
Published December 18, 2018
West Texas Intermediate crude futures have dropped more than 8% in the past week, falling to $47.95 this morning. The continued sell off in the commodity is being driven mainly by increased US shale supplies, as well as effective implementation of the latest OPEC cuts.
The Federal Reserve Open Market Committee begins its two-day meeting today, with the fourth rate hike this year to be announced tomorrow. Market expectations center on a dovish hike, with ample attention focused on forward guidance for the year ahead.
British Prime Minister May has requested an additional four weeks to salvage the Brexit deal. European Union leaders have increased pressure on the UK, stating that a no-deal situation would not conclude in multiple treaties with Britain to ease any transition.
Chinese President Xi Jinping held a conference of party officials military yesterday, specifically outlining that “no one is in the position to dictate to the Chinese people”. The strong rhetoric was further emphasized by revamped policies for the party looking into 2019. The communist party’s annual economic policy meeting begins Wednesday.