Open: London Session | Forex, Metals, Oil, Agriculture September 26, 2022

Britain s currency briefly took out an all-time low against the dollar that had stood since early 1985, when Margaret Thatcher was prime minister. It is now in its most prolonged drawdown since the Global Financial Crisis of 2007-11: And on any sensible basis, the US dollar is very, very strong. Friday s trading saw the fourth-biggest fall for the pound against the dollar in the last four decades. Data for the 19-nation euro zone are due Friday following reports from the region s three largest economies.
Asian shares slid on Monday and the dollar maintained its rally. Against the euro, and against a trade-weighted basket of currencies, this selloff is drastic but the lows set during Covid remain intact.

Low taxes on gasoline mean that rises in crude prices translate swiftly into big percentage increases at the pump. By the end of last week, crude oil contracts had dropped below their level on the eve of the Ukraine invasion. The oil market may yet have another turn in it. Look no further than the oil price.

But the falling gas price, by stimulating extra consumption at a point when the Fed wants to engineer a slowdown, also promises to be a problem. Sullivan said the US also has made it clear in public that it would respond decisively if Russia uses nuclear weapons. Bond Markets For one key trend that doesn t fit the prevailing narrative, look at consumer confidence in the US.

The pound is taking a severe beating, Italy s first female PM, a private warning against Russia s nuclear threat and updates to the EU s draft energy plan. The Brexit vote itself was intended as a step to reclaim control from elites. ECB President Christine Lagarde is to appear before the Committee on Economic and Monetary Affairs of the European Parliament in Brussels.