Brent Crude Oil Drops: 5 Reasons Why | Fed Rate Hike, Gold, GBPJPY & BoJ Outlook

In our last video, we stressed the importance of the US Fed interest rate decision.

You may not have got that equities and indices almost always react negatively to rising interest rates, and look what happened to indices like the NASDAQ.

I’m Brad Alexander, and in today’s GCI Market Outlook, let’s take a look at Forex trading on GBPJPY, GBPCHF, Brent Crude Oil, Gold, XAUUSD, and the NASDAQ.

Just a reminder that these videos are intended as observational and educational, and are not to be considered as trading advice.

Last video: https://youtu.be/hVowskaHOEY?si=twDU8lmtWe8rGdli

As I always say, trade the news after the event, and our News Catalyst Trade strategy picked the bottom perfectly.

The DI- on the ADX peaked and fell, and the stochastic oscillator was oversold and turned up.

Now, price has returned to normal as investors saw the bargains and bought back in.

Of course, USD got even stronger last night, which drove gold lower.

And you can see the News Catalyst Fade indicators picked up the bottom on a lower time frame.

Unfortunately, for our strategy, all USD pairs, including XAUUSD, price went with the trend, so if you were short gold before the news, you got an early birthday present.

Now, we are still looking at USD strength and short on gold, as the trend lines are proving to be quite accurate.

Looking at Brent and WTI Crude Oil prices are lower for a few reasons, not least that the US Congress voted positively on a bill to end the war.

Will Trump sign it?

Also, Saudi Arabia is rerouting its crude and rapidly fixing its pipeline.

US Crude inventories were in better shape than thought, and we have seen profit-taking after the latest rally.

The stronger USD after yesterday’s Fed interest rate announcement has helped bring down the price, and in general, traffic is moving through the Strait of Hormuz with less geopolitical risk.

Today we have the BoE interest rate decision, and we see mixed GBP strength and weakness, so we may have some countertrend opportunities.

The BoE are expected to hold rates steady, but watch the voting numbers.

We always expect volatility, but if these numbers are different from the forecast, the volatility will be amplified, creating opportunities.

For example, if the news drives price action against the trend, this gives us an opportunity to enter the market WITH the trend.

Check all your GBP pairs, of course.

On GBPJPY, and all JPY pairs, we noted a lot of yen buying yesterday, as tomorrow the BoJ is expected to raise rates.

If recent history holds true, we should see JPY strength temporarily, then a return to normal JPY weakness.

That’s all for now.

CFDs and FX are leveraged products, and your capital may be at risk.