Open: London Session | Forex, Metals, Oil, Agriculture October 12, 2022



The pound quickly reversed an earlier advance and sank 1% to trade below 1.10 versus the dollar for the first time since late September. The Washington-based Fund forecast yesterday that the Italian economy will contract by 0.2% next year, one of only two euro members seen shrinking, alongside Germany. Yellen s nod for a strong dollar.


Biden vows to punish Saudis over oil.

United States

BOE s credibility on the line, game plan against Russia, gas price cap in Europe, the Fed s balance sheet and more headaches f View in browser Good morning. BOE s credibility on the line, game plan against Russia, gas price cap in Europe, the Fed s balance sheet and more headaches for Credit Suisse. Foreign custody holdings of Treasuries at the Fed fell notably for the second week in a row (-$30bn), consistent with central banks selling Treasuries for intervention purposes.
Meanwhile, a lawyer accused the bank as being part of a conspiracy network focused on rigging the foreign exchange market during a trial session in the US. It s understandable that interest still focuses so much on what the Fed will do next, but last week at least it seems to have sparked wishful thinking. Every market break ended with intervention from the Fed and other central banks. Game Plan President Joe Biden said the US has gamed out responses if Russian President Vladimir Putin uses a nuclear weapon in Ukraine.
It’s worth reading.And finally, on the subject of parodies, the US Supreme Court is about to consider a case on the limits on the right to parody publications. The Fed since September has been allowing its holdings of Treasuries and mortgage-backed securities to mature at a monthly pace of up to $95 billion. Meanwhile, President Joe Biden said a recession in the US is possible but that any downturn would be very slight .


But there is lingering opposition from the likes of Germany who see it as spurring demand for energy when the EU should be trying to curb its thirst. Germany and the Netherlands unveil a multi-pronged approach to help cut EU energy costs before a meeting of ministers in Prague. However, some nations remain skeptical, fearing a cap could spur demand at a time when the EU needs to curb its thirst for Russian gas. The aim is to show enough agreement to allow the Commission to present a set of new proposals before EU leaders gather in Brussels next week.
ECB s Villeroy outlines a plan for cautious, flexible tightening.