Dollar in Focus as Dual NFP Report and Global FX Shifts Shape Market Outlook
UK Wage Growth Slows Sharply, Paving the Way for Rate Cuts
Eurozone PMI Signals Resilient Growth Despite Manufacturing Slowdown
Fed Faces Liquidity Pressures as Balance Sheet Freeze Meets Market Ti
France’s Social Security Budget Passes by Narrow Margin, Raising Fiscal Risks for 2026
Summary:
Due to the US Federal Reserve's determination to maintain rising interest rates in order to reduce inflation, gold prices declined to a three-week low of $1,760 an ounce on Friday and were expected to conclude the week considerably lower. Due to the hawkish posture of the US central bank, the dollar has reached a one-month high against its main competitors, increasing the price of gold for buyers using other currencies. James Bullard, president of the St. Louis Fed Bank, stated in the most recent Fed commentary that he is considering supporting a third consecutive 75-basis point rate hike in September and that he is not yet prepared to declare that the economy has experienced the worst of the inflation spike.
Gold Dec ‘22 Futures Price Chart
As worries about a global economic downturn overcame indications of more solid short-term fuel demand, WTI oil futures traded lower at about $89 per barrel on Friday and are expected to decline by more than 3% this week. Commodity markets remained gripped by recessionary fears, and the US Federal Reserve planned to raise interest rates further higher to fight inflation. Investors weigh the gradual rise in Russian production against European Union import curbs on goods in December and the beginning of the following year. Oil prices fell to their lowest levels in six months this week as a result of efforts to resurrect the 2015 nuclear agreement, which could increase Iranian oil shipments by approximately 2.5 million bpd. The nation exported a record 5 million bpd of oil last week amid strong European demand, according to official data, which also showed that US crude inventories were declining and that gasoline demand was rising. This led to an increase in oil prices of roughly 4% over the previous two sessions.
WTI Crude Futures Price Chart
As traders weighed the chances of decreased supply against those of lower demand, cotton futures increased to levels above 120 USd/Lb, the highest in more than 7 weeks. According to the most recent USDA crop report, production for 2022–2023 will drop to 12.6 million bales, which would mark a decline from 2009–2010 levels. Additionally, the new output prediction is around 19% lower than 2021–2022. In the meantime, poor weather and pest attacks in important growing regions continue to threaten cotton crops in India, another significant producer.
Cotton Oct ‘22 Futures Price Chart
Sources: finance.yahoo.com, tradingeconomics.com
