Dollar softening on dovish Fed Official rate talk, US crude plunging


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Dollar softening on dovish Fed Official rate talk, US crude plunging

  • The United States dollar softened and treasury yields slid yesterday, followed by a dovish comment from newly appointed Fed vice chairman, Richard Clarida
  • As US stocks remained largely histrionic, S&P 500 and Dow Jones ended in the greens
  • Oil price remained at a yearly low, as a neutralization of Khaghoshi killing talks by Saudi Arabia influenced OPEC.
The American dollar and the US treasury yields had softened yesterday, followed by a comment from a newly appoint FED vice chairman, Richard Clarida.

Market was literally shaken by his comments, as he remained guileless and didn’t even bother to respect the conventionally hawkish FED momentum. According to this newly appointed Fed Vice chairman, U.S interest rates were closing in towards a FED estimated neutral zone and “being neutral would make sense”.

He also added that there were some evidences of global slowing. More importantly, Trump told that his administration would not impose newer trade tariffs over Chinese goods. As US stocks are inveterately influenced, the US softening, a wishful thought of US-China trade deal and an unexpected dovish FED comment, sparkled up the stock prices a little.

Oil prices remained at a yearly low, as a compensatory move by Saudi Arabia influenced OPEC and US oil reserve had also breached a record high.