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Posts by "faisal"

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Faisal
(London, United Kingdom)
   
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Faisal
London, UK
Posts: 0
5 years ago
Sep 17, 2019 11:59
In Thread: Fed & USD
In reply to Ashraf Laidi's post
Good points Ashraf, Thank you for your insights.
Faisal
London, UK
Posts: 0
5 years ago
Sep 17, 2019 11:21
In Thread: Fed & USD
The risk is there won't be a cut! We have yet to see a response from the US and Saudi's on this infrastructure attack... this is the 911 to the energy world, it happened in Saudi today, it can happen all over the world tomorrow.

Markets aren't taking it seriously because there is no response from the US, once they respond then the market will respond, I suspect Oil will go to $80-90 as it will become a precious commodity again.

The impact of higher oil prices will certainly be felt by the consumer, we saw exactly what happened to the British consumer and inflation straight after Brexit vote.

The fed would be in their right mind to cut, but why the hurry? there has been no response from Saudi or the US, so why not wait a month and respond by a cut once you know the outcome.

Remember the US did not respond to 911 straight away, they waited. The fed waited too, it was a coordinated response when they went to war with Afgan and Iraq to no upset the markets and the markets responded by moving higher.

The risk is definitely for a no-cut tomorrow, they can deal with a 4-5% drawdown tomorrow rather than a 20-30% drawdown next month.
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