Exness’s chief market strategist Wael Makarem said in an interview with Al-Arabiya that the continuation of Jerome Powell as chair of the Federal Reserve means the continuation of the same approach, and therefore the markets have been reassured on this issue, that there is no change in monetary policy.
Wael Makarem added that 4 Federal Reserve members suggested accelerating the pace of reduction in purchases of asset, and this has impacted the markets in the past couple of days, with greater benefits expected for the US dollar.
He explained that there is a clear discrepancy in monetary policy between the Federal Reserve and other central banks, which should lead the dollar index to other gains, especially with a greater reduction in asset purchases, and which depends on the next meeting. of the Federal Reserve.
As for the European markets, Wael Makarem said the Purchasing Managers Index in Germany today is positive, but if the movement is limited in Germany, this will affect German markets, emphasizing that the euro was impacted by Lagarde’s adoption that inflation is temporary, but stocks are most affected in the European region.
As for the oil markets, Exness’s chief market strategist said that if oil-consuming countries had waited without withdrawing from reserves until next year with a sufficient supply of oil expected in the markets, they would not have rushed in and would have withdrawn from strategic stocks, but are looking forward to a quick result by entering the market quickly.
He added that compared to the layoff of reserves in previous years, prices have now fallen by more than 10% from current levels of $ 85 to $ 75 and in in the past the decline was 20%.
Wael Makarem stressed that the supply of strategic oil reserves, its numbers are small, compared to the size of the oil market, and therefore this step will not have a long-term impact, especially with technical problems in production that put consumers in countries in difficulties in the long run because producing countries will remain conservative and therefore demand will not be sufficient.
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