Market Snapshot – ECB Leaves Policy Unchanged, Crude Oil Below $50

ECB Leaves Interest Rate Unchanged, Cuts QE to €60B

ECB left its interest rate policy unchanged confirmed the QE schedule through to the end of the year, which cuts back monthly purchase volumes to EUR 60 billion starting next month, but also repeated that QE purchase volumes can still be lifted if necessary.

There was change on the rate guidance either, and Bund futures moved higher as the hawks lost their push for at least a change in rhetoric in the light of higher inflation and growth data. EUR/USD rises to 1.06, +0.55%.

Crude Oil Breaks Below $50

Crude oil futures continue to sell-off early Thursday following yesterday’s steep plunge. The driving force remains hedge and commodity fund liquidation, triggered by Wednesday’s bearish U.S. Energy Information Administration’s weekly inventories report.

The crude oil is trading below $50 a barrel for the first time since December 2016 at 49.49, -1.57%, touching an intraday low of $48.80.

Gold Prices Under Pressure on Rate Hike Projections

Gold is trading lower on Thursday for its fifth consecutive day as expectations of the Federal Reserve will raise interest rate in their next meeting on March 15.

The gold was trading closer to 1200 during the day with bearish sentiment. According to CME Fed Funds, chances for March rate hike priced in at 90%, however markets are also pricing an increase in every quarter this year.