Markets in the Asian domain have turned risk averse as investors are experiencing sheer anxiety ahead of the interest rate decision from various central banks. Indices are following the footprints of the S&P500 and are likely to remain on tenterhooks as the fresh rate hike cycle will escalate recession fears. The US Dollar index (DXY) is aiming to overstep the day’s high around 105.20 amid an upbeat market mood. Meanwhile, the US Treasury yields have surrendered their gains and have shifted into a negative trajectory.
At the press time, Japan’s Nikkei225 eased 0.20%, ChinaA50 plunged 1.23%, Hang Seng plummeted 1.93% while Nifty50 added 0.07%.
This week, the Federal Reserve (Fed), European Central Bank (ECB), Bank of England (BOE), and the Swiss National Bank (SNB) will announce their last monetary policies of CY2022. All western central banks are expected to hike their interest rates, which will accelerate the risk of recession in the global economy. Also, their guidance on interest rates will be keenly watched.
Meanwhile, Chinese equities are facing immense pressure as Covid restrictions easing-inspired optimism is fading away. No doubt, the institutional investors are hiking their guidance for economic projections but the impact of recent carnage will stay for a while.
On the oil front, oil prices have rebounded after dropping to near the critical support of $70.00. The oil price has managed to defend the critical support and has resurfaced firmly as a key pipeline supplying the United States remained shut while Russian President Vladimir Putin threatened to cut production in retaliation for a Western price cap on its exports, reported Reuters.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
GBP/USD struggles to gain traction early Monday and continues to trade below 1.2250. The data published by the UK's ONS showed that GDP grew by 0.5% on a monthly basis in October, compared to market expectation for a contraction of 0.1%, but failed to provide a boost to the pair.
EUR/USD grinds lower toward 1.0500, printing mild losses to extend Friday’s downward trajectory. Traders await this week’s bumper US and EU events in early Europe. Economic slowdown fears, EU-Russia tensions join pre-Fed anxiety to fuel the US Dollar rebound.
Gold price is dropping for the first time in five trading days on Monday, kicking off the week on a negative note. Investors prefer to hold the United States Dollar (USD), in what seems to be a decisive week for the market.
Terra Labs founder Kwon Do-Hyung is in Serbia, as reported by a local media Chosun. The report says that Do Kwon is avoiding arrest by Korean officials who believe he has fled to Serbia. Luna Classic price hovers around $0.000166.
US CPI (Nov): The catalyst for the recent sharp slide in the US dollar was October’s CPI numbers, which came in well below expectations. The fall to 7.7% on the headline number along with a decline in core prices to 6.3% also saw yields slip back as well.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and omissions may occur. Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, clients or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
