Markets are experiencing extreme volatility in the face of tumultuous economic, social and Geo-Political times. The US and UK are beating the drums of war over the Ukraine, sending support in the form of military equipment and promises of further logistical support and sanctions, if war was to break out. The European powers seem totally unconvinced of the situation, writing it off as sabre-rattling to divert attention from domestic political issues, tormenting the regimes of both the UK and US. The heating up of tensions has unsettled markets, along with the impending FOMC meeting, which is due to have a press conference tonight. Inflation is a political and economic cancer and must be addressed. The Fed have already indicated 3 or 4 interest rate rises for 2022 and may end QE earlier than expected?
The global stock markets are experiencing extreme volatility, the likes are experienced in times of global crises, with massive swings in markets, as US equities head into correction territory. US Bond Yields have been on the rise and supporting a stronger US Dollar, with the EUR slipping back below 1.1300, while the GBP trades around 1.3500.
Commodity prices rebounded and this saw a slight recovery in the associated currencies. The NZD looked to regain 0.6700, while the AUD traded up to 0.7150, but both remain vulnerable to negative market sentiment. All eyes remain on the Fed and their press conference tonight.