Open: London Session | Forex, Metals, Oil, Agriculture November 04, 2022

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Currencies

After all, he said, the upside risk to the terminal rate will keep the dollar supported.But what would a stronger dollar plus higher rates mean for earnings estimates? In the short term, the euro area will experience zero or negative growth with high inflation, a senior EU official admitted yesterday. Price growth in the euro zone, which hit 10.7% last month, is way too high, Lagarde said Thursday evening in an interview with Latvian television. But nobody now wants to fight the strong dollar.
The stock now trades for less than a dollar. In more ways than one.First, the dollar.

Oil

France s national weather service forecasted that warmer-than-normal temperatures will continue through December, and therefore the trend of falling natural gas prices since late August may continue. The recession, in combination with the extremely high cost of essential imports led by fuel and natural gas, will do much of the Bank s work for it. US, partners opt to set fixed crude price for Russia oil cap.

United States

This is unlikely to happen, says Perkins, for two reasons:First, the US authorities have only a domestic mandate, not an international one. At some point the Fed will pause but that s not going to help if earnings are going down a lot. ECB President Christine Lagarde and Boston Fed President Susan Collins speak at events.

China

The two leaders met in Beijing this morning ahead of their first in-person talks since Scholz took office, the official Xinhua News Agency reported.

Europe

Can Go Higher European Central Bank President Christine Lagarde said there s still a way to go on raising interest rates to counter record inflation. Lagarde said earlier Thursday at a conference in Riga that while a mild recession is possible, that wouldn t be sufficient to tame inflation. While a contraction isn t her baseline scenario, Lagarde s Latvian colleague, Martins Kazaks, said he expects one in the coming months. But rather than Russia, Poland s most powerful politician laid into EU ally Germany, the ruling party s latest convenient enemy.
The Chinese leader s efforts to solidify ties with Germany are part of a broader push to prevent relations with the European Union from further deteriorating. Meloni tells EU that Italy is ready to play by the rules.

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