by Marc Chandler
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Here is a few minute video where I try to sketch out the significant developments last week, including the Fed's hawkish hold, BOJ rate hike, and the by-election in the UK, whose effects may not have run their course yet.
That said, the Fed's hawkish hold will likely to persist, and the El Nino weather pattern warns of the risk of another food shock in the fall. The BOJ's rate hike did not stop the market from extending the yen's sell-off. Gaming intervention and the possibility of greater US support (than in April and May) is part of trading the yen now. The UK's Brexit referendum was a decade ago, and in that time, the country has had six prime ministers, and seems likely to have a seventh in the second half of the year.
August WTI has come off a little more than 25% since the peak on May 18, a little over $100. At last week's lows, it was back at levels seen in mid-March. Much good news seems to be discounted, and yet the ceasefire remains fragile.
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