Hello, everyone! Wednesday is here and we are ready, to sum up, yesterday’s bloodbath in the gold, currency, and oil markets.
A renewed spike in Covid cases in China and expectations of a US recession in the next year resulted in the mixed performance of Forex, stocks, and commodities. US Treasury yield stays inverted for a second straight day on Wednesday. US dollar index broke above the ascending wedge pattern on Tuesday and reached the 106 level. At the same time, EURUSD fell to the low of 2002 and almost reached psychological support at 1.0200. USDCAD tested the resistance at 1.3080.
Gold broke below the crucial support zone at 1800 and move lower towards 1760. The next target for sellers of the yellow metal lies at 1700.
The oil prices slid lower as well. XTIUSD dropped below the $100 level and tested the support at $97. XBRUSD fell below the lower border of the ascending trading channel and tested the $100 level. Meanwhile, a Russian court ordered the Caspian Pipeline Consortium (CPC), one of the world's largest pipelines which bring oil from Kazakhstan to the Black Sea, to suspend activity for 30 days, adding to global worries over oil supplies. This news has already pushed oil prices higher since the start of today’s trading session.
Two senior UK cabinet ministers resigned on Tuesday in protest over Prime Minister Boris Johnson’s leadership, following a string of scandals that have plagued his tenure over the last few months.
Today, the FOMC Meeting Minutes at 21:00 GMT+3 will reveal the regulator’s views on further steps regarding monetary policy amid surging inflation and a weakening economy.