Economies

The G7 countries pledged over the weekend to phase out Russian oil, while in speech earlier today, Mr Putin did not announce any major policy changes

The Fed and BoE have hiked rates, and pressure is on the ECB to raise, but growth concerns may limit policy.

The pair tries to catch a breath, following its worst day in two years, due to the Bank of England gloomy economic outlook

Although gold rallied yesterday, following the Fed-perceived dovishness, it remains weak on the daily time frame.

The US Federal Reserve hiked interest rates by 50 basis points as expected on Wednesday, which was the biggest increase since 2000 and the dot-com bubble

The core PCE reading of 5.2%, the higher than anticipated employment cost index, and tight labour conditions will trump the disappointing GDP contraction of -1.4% q/q (1.1% q/q forecast).

Oil is climbing following a proposal made by European Commission President Ursula von der Leyen to embargo Russian crude oil imports within the next six months. This ban will include both seaborne and pipeline supply. Moreover, refined products will be phased out by the end of 2022.

Gold charts a lower peak followed by a lower trough on its weekly chart.

BoJ diverges further away from Fed as it defends 25bps on its 10-year treasury. Core PCE moderates slightly, but employment costs are up. Advanced GDP stumbles to -1.4%contraction Q/Q. The RBA surprised with a 25bps hike, and the market looks to the Fed announcement on Wednesday for an expected 50bps hike and QT information. The market expects the BoE to raise rates by 25 bps, and Friday sees the NFP…

The required rate of return is in flux. This adjustment increases uncertainty in the financial markets.

The Reserve Bank of Australia (RBA) increased interest rates by 25 basis points today, delivering the first hike since November 2010, in a backdrop of surging inflation