What to Look out for Today 2017.07.27 – Fed Decision Causes Dollar Drop

Although it’s not news anymore the dollar took another significant hit after the announcement that the Federal Reserve decided on keeping interest rates at their current levels. Unfortunately for the USD though the current levels of inflation are below the Fed’s target of 2%.

The more positive news from the US is that demand is surpassing the US’s oil production – at the moment it is actually the world’s leading exporter of crude. This is a substantial paradigm shift of the US as leading consumer and importer of global crude. Ironically the global demand for shale oil gapped waning domestic demand for the fuel.

Another reason the US has so enthusiastically increase crude output is to counter-balance the on-going saga of the OPEC+ agreement – that sought to restrict the production of oil, to exhaust crude reserves around the world ultimately bring the price of oil up. Beyond this with the primary role that the US has taken as a global leader in energy, investors and traders will be watching American production closely.

Today we can expect even more US-centric news with the second quarter Gross Domestic Product being released along with an estimate for the second quarter of 2017.

This article comprises the personal view and opinion of the STO Investment Research Desk and at no time should be construed as Investment Advice.

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