2022 was rough: inflation, energy crisis, and plenty of other controversial situations…
Economic Consequences: Wednesday’s News
The impact of sanctions against Russia and Ukrainian conflict has become more visible, especially if we talk about natural commodities.
Stocks continued to sell off on Wednesday as the war in Ukraine and sanctions against Russia caused a record surge in commodities, clouding the economic outlook and boosting demand for sovereign bonds.
Russia's invasion of Ukraine threatens the flow of crops, energy and metals. The two countries account for more than a quarter of the world's grain trade, and Russia is rich in oil and gas as well. Wheat hit a 14-year high, XBR was near $110 a barrel, and the commodity index jumped to a record high since 2009. Now the resistance is at $111.50, and support is at $108.30.
Safe-haven demand supported the global fixed-income rally, with 10-year US Treasuries yielding about 1.72% and the Australian equivalent down 11 basis points. XAU fell in price, but remained near the 13-month high. USD was firm.
EU ambassadors agreed to exclude seven Russian banks from the SWIFT financial messaging system. Still, they spared the country's largest lender Sberbank PJSC and a bank partly owned by Russian gas giant Gazprom PJSC.
What to watch next?
CAD overnight rate, 05:00 PM MT
USD Fed chair Powell Testifies, 05:00 PM MT
OPEC-JMMC Meetings, all day
The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
Happy Monday, dear traders! Hope you had a great weekend and you’re ready for the last trading week in 2022! Later this week we’ll announce some exciting news for you, but now let’s look through some interesting news! Today’s events: USA, UK, Hong…
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.