Open: London Session | Forex, Metals, Oil, Agriculture May 24, 2022

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Currencies

As purchasing power wanes amid high energy and food prices, even ECB workers sought pay rises in line with euro-area inflation currently at a record 7.4%. Meanwhile, member states disagree over how to design a 9 billion-euro plan to cover Ukraine s urgent financial needs and the EU summit could leave the issue unresolved. A lower dollar should buoy US corporate profits by flattering multinationals overseas earnings. That weakens the dollar, which is a relief to more or less everyone.

United States

That should eventually favor them, once they get past the inevitable slowdown that aggressive Fed tightening will bring.

Europe

The president of the European Central Bank chose Monday morning to post an essay to the ECB website, effectively setting out a new and more hawkish policy. The UK is eyeing changes to its Brexit deal w View in browser Good morning. The ECB has form for effectively promising monetary policy moves months in advance. A busy week for ECB speakers continues as Francois Villeroy de Galhau speaks in Davos about financial inclusion. The EU proposed extending the escape clause yesterday to address the fallout of the war in Ukraine.
Read more in our rolling update.Hawks Unhappy | ECB President Christine Lagarde s rate hikes strategy has irked some in her institution. In Case You Missed It Rubles Rules | The EU s guidance on rubles-for-gas contracts continued to spark criticism from member states. The UK is eyeing changes to its Brexit deal with the EU.

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