The Fed has made it apparent that the emphasis of policy going ahead is inflation, and Treasury rates have recommenced their rising trajectory overnight in response. After dipping several bps in the Asian session, the benchmark 10-year note is now close to 3.18%.
Suhail al-Mazrouei, the energy minister of the United Arab Emirates (UAE), made some remarks that have made the oil production restrictions brought on by the political unrest in Ecuador and Libya worse.
Their oil production, according to him, was almost at maximum. One of the few countries that might fill the gap created by Russian sanctions was the UAE, per the market.
In Asia, the WTI futures contract has crossed the US $111 barrel mark, whereas the US$ 116 bbl mark for the Brent contract.
Worries about global growth have been the main focus for commodities markets, with copper and tin extending their decline.
APAC stocks are uneven, with the Australian and Japanese indices being a little firmer than the Chinese and Hong Kong.
Even though the Euro has maintained its gains from June 27, the oil-backed Norwegian Krone has gained the most ground so far in what has been a rather quiet currency day.
The ECB forum will begin, and the president of the San Francisco Federal Reserve, Mary Dale will speak as well. There will be some consumer confidence statistics in the US.
The USD (DXY) index has just pulled back, but it is still well over an upward trend line that has gotten steeper since March 2022. The current high of 105.79 or the surrounding 10-day simple moving average could serve as resistance.
Support for the negative might be found at the 103.42 retreats low or the upward trend line (102.20).