Open: London Session | Forex, Metals, Oil, Agriculture August 10, 2022



Where is the coffee?

United States

Since the first Covid shutdown, stocks have tended to rise and fall with liquidity injections by the Fed. What matters is the effective balance sheet, which measures how much liquidity the Fed puts into the system. The last time the Fed attempted quantitative tightening (QT), in 2018 and 2019, it was forced to reverse course by ructions in the repo market. While Ukraine has received billions of dollars of weapons from the US and Europe, Russia must rely on its own resources to support frontline forces.
Regional Fed presidents Charles Evans and Neel Kashkari are due to make comments at separate events.