Russia Has Announced To Cut Its Production By 500 000 Barrels Per Day, Equities Are Under Selling Presure
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US equities recorded their worst week since the year started.
Hawkish comments from many Federal Reserve (Fed) members hammers sentiment, as stress mounts before the much-important US CPI data due Tuesday.
US CPI
If US inflation hasn’t eased, or eased enough, or God forbid, ticked unexpectedly higher on yearly basis, we could rapidly see the post-NFP optimism, and the pricing on the goldilocks scenario to leave its place to fear and chaos.
Fed
At the start of the week, the activity on Fed fund futures hints at around 91% chance for a 25bp in the next FOMC meeting, and around 9% chance for a 50bp hike.
Forex
In the FX, the US dollar index finally cleared the 50-DMA offers on Friday - which I think could be premature if tomorrow’s US inflation number is sufficiently soft.
A a wave of fresh buying in the Japanese yen also marked the latest mood in the currency markets, but didn’t last long.
The EURUSD, on the other hand, slipped below its own 50-DMA. What’s next depends on the US dollar, as the US dollar is what leads the dance right now.
Read next: Amazon Is Slowly Dismantling Tony Hsieh’s Version Of Zappos, Louisa Vuitton Doubled Sales| FXMAG.COM
Energy market
In energy, US crude oil jumped past the $80pb on Friday, as Russia announced to cut its production by 500’000 barrels per day, which is roughly 5% of its daily production. But gains remain limited by an overall bearish mood and recession fears, and offers remain strong into the 100-DMA, which currently stands near $81pb level.
Watch the full episode to find out more!
- 0:00 Intro
- 0:27 Investors are tense before US inflation data due Tue
- 3:30 S&P500, Nasdaq: key technical levels to watch this week
- 5:27 FX update: USD up, euro, yen down
- 7:47 UK avoids recession, FTSE at record, BP tops £100bn valuation
- 9:09 Crude jumps on Russia, but 100-DMA still intact
Ipek Ozkardeskaya
Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020.
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