Market Analytics and Considerations
Key Notes
- After experiencing a 2-day decline, crude oil prices recovered some help today.
- The WTI Fed conclusions show its determination would slow the economy, which is being dragged down by an IMF alarm and China’s economic problems.
Despite the “big dollar” suffering substantial losses overseas, the price of crude oil expressed in US dollars plunged sharply overnight. The USD/JPY was a notable exception, as it made a decent climb to a high of 132.71 until settling.
The International Monetary Fund (IMF) Director Kristalina Georgieva issued a warning before trading for 2023, pointing out that the US, China, and EU are all decreasing in the same time and that a third of the world will experience a recession this year.
Expectations the Fed to hold at 5.4%. Until rates start to decline again, the market has already factored in a much lower high. If inflation is not kept in check, rates may continue to increase beyond 5.4%.
Oil has fallen in value in Japanese Yen as a result of price movements in WTI crude and USD/JPY. If both markets keep falling, this might reduce energy inflation for the 3rd-largest the world’s economy and possibly increase output growth.
