Market Outlook

“EU leaders agree to ban 90% of Russian oil by year end.” Risk aversion began to pick up during Asian trading session as economic conundrum emerges in the European Union. According to reports, EU leaders have agreed to ban oil imports from Russia. The move is enforced to cut off revenues from oil sales that may be channelled towards war in Ukraine. The embargo covers oil and petroleum

“Traders shifts their focus as Fed signaled to pause policy tightening.” Bears continue to steer the greenback as traders shifts their focus towards risky assets in the market. For the time being, investors have seemingly priced-in for 2 more 50 basis point rate hikes from Fed, before pausing its tightening effort to monitor its impact towards US economy. Likewise, risk appetite towards

“Demand for greenback dwindles as Fed mulls to pause rate hike.” Greenback is expected to record its biggest lost in four months as traders lower their expectation towards aggressive interest rate hike from Federal Reserve. Recently, meeting minutes from Fed signalled for a possible pause in rate hikes as they would like to monitor policy adjustment’s impact upon US economy. The latest

“Fed toning down on aggressiveness hinder further bets.” Greenback relinquished, hovering near one-month low as latest meeting minutes from Federal Reserve failed to excite market bulls. On yesterday, the minutes confirmed recent comments from Atlanta Fed President Raphael Bostic who suggested a pause on rate hikes in September. Bostic emphasize that the exercise is necessary to monitor

“Lagarde indicates that negative interest rate may likely be gone by end of summer.” Greenback extended its losses, hovering near one-month low after European Central Bank President Christine Lagarde delivered hawkish signal on yesterday. Lagarde commented that euro-zone interest rates may be tweaked to positive territory by the end of third quarter. Her comment was a significant

“Risk-on mood dragged on US dollar, propping up demand for Australian dollar” Aussie dollar hovers near two-weeks high, extending its consolidation phase after greenback bulls comes to a stall. Market sentiment towards the currency was rather positive as Reserve Bank of Australia signalled for a larger interest rate hike in June due to stubbornly high inflation. Traders speculate that

“China reported 802 cases for Sunday, down from 824 on Saturday.” Investors seemed unsettled as of recent due to mixed signals, thwarting off any signs for an apparent trend to emerge. According to Reuters, net long position on the greenback slipped, pressured by the change in sentiment towards riskier asset. However, soaring inflation in the US offered the currency some support, even

“Heat upon greenback cools, all eyes on future data.” US dollar loses its steam, trimming off further gains and recording its worst week since early February. Investors shifted their focus towards other risky assets as they may have fully digested the possibility for more aggressive rate hike from the Federal Reserve. Likewise, as Fed’s decision is solely dependent on future US data,

“Greenback gave up as market participants turn away.” Greenback faces hurdle from the upside as it began to falter during European trading session. Last week, Federal Reserve Chair Jerome Powell signalled for an aggressive approach in monetary policy to curb stubbornly high inflation in the US. While his comment sparked a major appreciation on the greenback, investors began to price-in on

“Shanghai lockdown restriction eases, spurring optimism among market participants.” Oil bulls extended their climb on Wednesday as market sentiment towards China improves. Yesterday, sources revealed that Shanghai local government has allowed financial institutions to resume their work in office. The decision was made after Shanghai recorded zero coronavirus cases for three consecutive