Recently, oil prices plunged by more than 5% in just a few hours. Interestingly, the reason for decline was not a report about oil freeze or output, but Federal Reserve Bank of Boston President Eric Rosengren calling for an interest rate hike.
It is unknown why traders reacted to the words of Rosengren in such a way, but the fact remains that the dollar immediately jumped against majors, thus triggering a fall in stocks, oil and other risky assets.
Analysts associate the reaction with the fact that Boston Fed President had adhered to a dovish monetary policy, but suddenly became hawkish. It is no surprising that sometimes the market does not behave in the way monetary authorities need. This time, Mr Rosengren was the market driver.
However, some time later the market was weighed by statistics from Baker Hughes. The oil driller reported that the number of active oil rigs in the US climbed by 7 to 414 last week.
This was the 11th week of increases in US active oil drilling rigs. As a result, the dollar retreated against its peers.
