Let’s start our review! Today, the focus of market participants is on the prospect of a hike in the Fed’s interest rates, which immediately affected the markets. The point is that the very prospect of dramatic changes in the regulator’s monetary policy is already a threat. This could upset the delicate balance the market is still trying to achieve. Do you want to know what effect this had on the commodity market and the ruble exchange rate? Then watch the video till the end! Brent crude oil has dropped to $79.20 per barrel for a number of reasons. Firstly, market participants are increasingly wary of new coronavirus restrictions worldwide, especially after Australia announced a lockdown. Secondly, traders are concerned about a possible supply glut in the commodity market due to the likely release of oil from the US Strategic Petroleum Reserve. Japan is also considering this option. Against this background, the estimated range of oil prices has shifted, and the current trading range is $78 - $81 per barrel. If the price drops below $78, Brent crude is expected to extend losses. Meanwhile, the foreign exchange market reacted to the statement of Janet Yellen about a possible increase in interest rates with steep gains in the US dollar. As a result, the ruble fell to 74.1 against the greenback. Now the Russian currency has a chance to recoup losses only on downbeat news from the United States, in particular, on the labor market data to be released soon. The dollar/ruble pair is expected to trade near 73.80 - 74 rubles per dollar, with possible fluctuations in one direction or another. The statement of Former Federal Reserve Chairman Janet Yellen affected gold as well. The precious metal began to lose value. In this situation, such a movement of the asset suggests a great speculative component in its current price. It can be assumed that in case of the Fed’s monetary policy tightening, gold will hardly rise as a safe-haven asset but rather fall. Friday's events make it clear that such a scenario is possible. Thus, last Friday, gold futures, which had traded in a sideways channel of $1,850 - $1,877 per troy ounce for quite a long time, broke through the lower boundary of that corridor. If the quote fixes below the level of $1,830 per troy ounce, the precious metal will most likely continue its bearish movement. Otherwise, gold may start trading sideways. Here’s our forecast for the beginning of the trading week. As you can see, trading instruments reacted strongly to the prospect of an interest rate hike. Today, we will find out whether the gained momentum will turn into a trend. Well, that’s it. Subscribe to our channel, watch new videos, and leave comments.


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