Now: Attention on FED and EU Energy Crisis
Uncertainty is back in the atmosphere, and this benefited greenback greatly. There a few factors on this situation and of the major reason is energy crisis in which become the headache for the European Union.
According to Germany, Gazprom which is one of the Russian gas giants is right now did not delivering the gas at full capacity. Figure show that Gazprom only sending 20% of the output that they normally do. In order to cope with the current situation, EU Countries agreed to reduce the usage of the gas for the winter by at least 15% for the upcoming 6 months.
Another focus is on the FED tonight. The FOMC meeting tonight will be watch by many as people speculate that FED will hike the rate by 75-basis points. Although there a possibility of hike by 100-basis point but it will be unlikely. The current inflation is quite high in which may result in FED to be a bit aggressive in other to tackle the problem but at the same time they do not want to risk the recession.
27 July 2022