Daily Market Commentary 29th March 2022

The Bank of England warned of massive cost-of-living increases, following a report confirming falls in the UK standard of living, would be the greatest in 50 ears, as the energy crises spreads to general goods and services. Governor Baily warned of energy price rises, the likes of which, had not seen since the energy crises of the 1970’s. These are sobering warnings and only reveals the extent of the crises, the UK and Europe find themselves in. Europe and the UK have committed slow motion suicide, with their energy policy and have only highlighted their colossal mistakes, with the Russian sanctions backfiring. The GBP has crashed below 1.3100, while the EUR spirals below 1.1000, in deep trouble.

The Bank of Japan intervened into the local bond market, to arrest a big sell-off in an effort to keep rates low, which saw the Yen crash to 125.00. Commodity prices have been extremely volatile and the latest dips have translated directly into the associated currencies. The NZD fell back below 0.6900, while the AUD slipped back below 0.7500, awaiting key domestic data releases today.

The Ukraine war continues, with Istanbul peace negotiations resuming, while NATO allies unity stumbles.