Close: London Session | Forex, Metals, Oil, Agriculture December 15, 2022

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Currencies

Survey respondents also expected a stronger dollar and weaker stocks into the end of the year. Demand for haven assets sent the dollar and Swiss franc higher amid a wave of rate hikes from Taiwan to Norway.

United States

Yet interest-rate futures pricing still showed a peak rate in May 2023 of less than 5%, and still reflect Fed rate cuts in the second half. Hence the new median forecast of Fed officials of a 5.1% benchmark rate for the end of next year, versus the current target range of 4.25%-4.5%. But if we got another cool report next month, would the Fed start to believe that it can hit its inflation target without unemployment significantly jumping? Stocks fall US equity-index futures and European stocks fell after the Fed pushed back on expectations for a dovish tilt and said interest rates will go higher for longer.
In the US, data include retail sales, initial jobless claims, Empire Manufacturing and Philadelphia Fed business outlook at 8:30 a.m., followed by industrial production and business inventories. But it’s clear that despite some cooling in measured inflation over the last couple of months, the Fed still feels it has more work to do.
It is important that overall financial conditions reflect the Fed s policy restraint, Powell said. Battery belt | With demand for electric cars soaring, the US desperately needs a new battery supply chain. Yes, the Fed stepped down its pace of rate hikes (from 75 to 50 bps). The incoming CEO of Maersk expressed cautious optimism earlier this week that any economic downturn in the US won t last long.

Europe

Poland and Lithuania are blocking the European Union s ninth package of sanctions against Russia, a Lithuanian government minister said ahead of a meeting of the bloc s leaders.

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