FOMC Results, 1,000 days after Brexit & “bargain of the century”

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FOMC Meeting Results. Rate left unchanged, as expected. Therefore, all the attention of the markets was focused on comments about the plans regarding the rate, reducing the balance of the Fed, as well as economic forecasts.

So, the Fed was able to perplex the markets, saying that there is no increases this year (recall, the only consensus was increasing this year). The motivation for extending the pause until the end of 2019 is a slowdown in economic growth. In addition, The Fed's program to reduce on its balance will end in September. In general, more than "pigeon" position, so dollar will adversely affect. However, we warned about the feasibility of selling the dollar in yesterday's review. In the light of FOMC outcome, our recommendation “sell the dollar” has become more relevant.

Brexit, 1,000 days since referendum. 1,000 days ago, British elected to leave the EU. But it does not work out. But they still far from any agreement.

Theresa May is today expected to ask the European Union for a short delay Brexit just days before Britain is scheduled to leave the bloc (no more than three months) in order to agree on new terms of the deal on leaving the EU, but it is not that simple. The European Union could grant Britain's request for a short Brexit delay if parliament votes next week (with just 9 days, until the scheduled date of Britain's exit from the EU) A long- term postponement should be given, but not eliminated the possibility that the U.K. leaves the EU without a deal.

In addition, the election in the EU is coming, if the UK does not participate in the European election then the EU may well point the UK at the door. That is why the pound was under downward pressure yesterday.

Yesterday's data on UK inflation came out within the framework of forecasts, which means that the Bank of England will leave its monetary policy parameters unchanged. The foreign exchange market will follow the news from Brussels.

A sharp decline in oil reserves in the United States (almost 10 million barrels), which is traditionally perceived as a bullish signal. So, our recommendation is to look for points for buying oil on the intraday basis which continues to be relevant.

We also continue to recommend buying gold on the intraday basis. One of the most successful hedge funds of 2018, Crescat Capital LLC broke out with apocalyptic predictions. In their opinion, the world is on the verge of recession, which means that the best trading tactics will be buying gold and getting out of risky assets. Analysts of Crescat Capital LLC have responded nobly to loud epithets, calling the purchase of gold "bargain of the century."