# Fed: Rate call eyed for commodity direction – ABN AMRO — Octa

> ABN AMRO said markets had priced a larger Fed cut than it expected, creating a risk of disappointment and profit-taking in commodities if the cut was only 25bp. It expects sideways commodity trading, with Brent at $60-80 and WTI at $50-70, and sees downside risk for gold.

- Date: 2019-07-22 · published 2019-07-22T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/58019-fed-rate-call-eyed-for-commodity-direction-abn-amro-octa
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

A cut smaller than priced could trigger a commodity sell-off on the long side, while the bank's range-bound outlook suggests limited directional support for feed input costs.

## Read by commodity

- WTI: neutral
- BRENT: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2019-08-01 | [Commodities outlook: Fed triggers copper reaction](https://feedsoft.ai/events/57509-commodities-outlook-fed-triggers-copper-reaction.md) | -12.7% | -4.7% |
| WTI | 2024-09-19 | [How commodity prices perform following rate cuts: Analysts](https://feedsoft.ai/events/28218-how-commodity-prices-perform-following-rate-cuts-analysts.md) | -1.9% | -1.1% |
| WTI | 2021-03-19 | [WCU: Commodity markets consolidate with one eye on inflation \| Saxo](https://feedsoft.ai/events/5670-wcu-commodity-markets-consolidate-with-one-eye-on-inflation-saxo.md) | -2.4% | +5.3% |
| WTI | 2017-10-18 | [Commodities following different paths on a common upward hill - Scotiabank — Octa](https://feedsoft.ai/events/68395-commodities-following-different-paths-on-a-common-upward-hill-scotiabank-octa.md) | +1.0% | +7.3% |
| WTI | 2023-05-29 | [Inflation Shows No Signs of Cooling. What Does That Mean For Commodity Prices? \| FXEmpire](https://feedsoft.ai/events/35850-inflation-shows-no-signs-of-cooling-what-does-that-mean-for-commodity-prices.md) | -0.4% | -6.6% |
| BRENT | 2021-03-19 | [WCU: Commodity markets consolidate with one eye on inflation \| Saxo](https://feedsoft.ai/events/5670-wcu-commodity-markets-consolidate-with-one-eye-on-inflation-saxo.md) | -1.8% | +5.9% |
| BRENT | 2023-08-28 | [Commodities Week Ahead: After Fed, US Jobs Pose Next Challenge for Oil \| Investing.com](https://feedsoft.ai/events/34486-commodities-week-ahead-after-fed-us-jobs-pose-next-challenge-for-oil-investing.md) | +5.1% | +10.2% |
| BRENT | 2017-03-15 | [Will A Fed Rate Hike Boost The Price Of Oil? \| Investing.com](https://feedsoft.ai/events/71924-will-a-fed-rate-hike-boost-the-price-of-oil-investing-com.md) | +0.6% | +10.4% |

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/727705/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.