EU to reduce dependance on Russian gas

and other FX market news.

Contents

    What’s new?

    The US and E.U are close to a deal that can ease commodities prices. There are ongoing discussions about how to prioritize LNG deliveries from the U.S to the EU. A reached agreement could benefit EUR and at the same time will isolate further Russia on the international scene.

    U.K taxpayers could face billions of USD cost if the government decide to not honor their forward contract signed with Gazprom forcing them to buy Spot at a much higher price. The would only reinforce skyrocketing inflation and ultimately weigh on U.K growth, the GBP would take a hit.

    USD/JPY continue to the upside, the key 120 level has been breached already so the pair is now heading to 125. One of the BOJ’s member said : "A weaker yen is positive for Japanese economy as a whole" highlighting the benefit for the export reliant economy.

    EU PMIs with be released today at 5pm HKT, we should see the first impact anchored in the EU output price of Ukraine war, which will press the ECB to move on sooner or later

    What’s in the pipe?

    • U.S President J.Biden attends NATO emergency summit in Brussels on Thursday
    • U.S initial jobless claims on Thursday

    FX rates

    USD/JPY @ 121.53 - Very bullish trend
    EUR/USD @ 1.0972 - Bearish trend
    GBP/USD @ 1.3182 - Bearish trend
    USD/CNH @ 6.3857 - Breach of the bearish trend

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