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Oil Futures Reactions to Monetary Policy Surprises: A High-Frequency Analysis

Syed Mujahid Hussain, Basel Awartani, Farrukh Javed, Iqbal Khadaroo, Nader Virk

Bulletin of Monetary Economics and Banking · 2026

Vollständiger Abstract

Worum geht es in dieser Arbeit?

This study examines how oil futures respond to monetary policy shocks arising from FOMC and ECB target-rate announcements, using high-frequency data. The results indicate that both sets of announcements significantly influence oil futures prices. However, FOMC decisions have a more pronounced effect on oil futures, whereas ECB interest rate surprises predominantly have a limited impact on the oil futures return and volatility. The analysis further uncovers an asymmetric response to positive versus negative interest rate shocks. These findings enhance the understanding of how monetary policy surprises are transmitted to oil futures markets. Therefore, these results have important implications for policymakers and portfolio and hedge fund managers.

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Publikationsdaten

Autor:innen
Syed Mujahid Hussain, Basel Awartani, Farrukh Javed, Iqbal Khadaroo, Nader Virk
Quelle
Bulletin of Monetary Economics and Banking
Publikation
2026-01-01
Band / Ausgabe
Nicht angegeben
Seiten
Nicht angegeben
ISSN / ISBN
2460-9196
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Zitierfähiger Nachweis

Syed Mujahid Hussain, Basel Awartani, Farrukh Javed, Iqbal Khadaroo, Nader Virk (2026). Oil Futures Reactions to Monetary Policy Surprises: A High-Frequency Analysis. Bulletin of Monetary Economics and Banking. https://doi.org/10.59091/2460-9196.2585
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