A couple of weeks ago, a number of Fed officials issued statements that made market participants believe that the regulator would raise the key interest rate by only 25 basis points at the upcoming meeting. This is what largely caused a protracted and steady decline in the dollar.
As a result, a weaker greenback contributed to a rise in a number of currencies and other financial instruments, including commodities. This once again confirms an inverse correlation between the dollar and all other financial assets. However, St. Louis Fed President James Bullard said yesterday that he would prefer policymakers stay on an aggressive path until they saw compelling evidence that the inflation cooling was not temporary. This forced traders to revise their expectations towards a 50-basis-point rate hike, which in turn led to an instant rally in the dollar.
Against this background, oil prices collapsed to $84 from over $87 per barrel. At the moment, the market is experiencing a rebound, which is not surprising after such a steep drop. Given that oil was among those to show the strongest reaction, its local downside potential is almost exhausted. Thus, the most likely suggests consolidation at current levels. Nevertheless, its chance of extending losses is now somewhat higher than that of resuming gains. Apparently, oil prices will try to return to $80 per barrel in the near future.
If the price fixes below 83, it will continue its bearish move. Otherwise, the asset may enter a sideways range and then reverse.
Gold was also affected by James Bullard's speech. It fell from almost $1,925 to $1,900. Like oil, the yellow metal is currently in a correction. The situation is similar. That is, its slight consolidation is likely to be followed by an attempt to dip below $1,900 per ounce.
At first glance, the ruble remained steady. However, the previous trading day was marked by no attempts to go below the level of 68 rubles per dollar. So the statement of the head of the St. Louis Federal Reserve still had an impact on the Russian currency by limiting its upside potential. If the dollar keeps rising across the board, it will most likely advance to 70 from 69 rubles.
If the price is able to consolidate above the 70 mark at least on the four-hour chart, the volume of long positions will increase. In this case, the greenback may well head for the area of 72-73.

00:00 Introduction
00:24 Oil Market Situation
01:03 Brent
01:49 USD/RUB
02:13 GOLD
02:58 Conclusion

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