American Dollar on the roll

Today, however, the USD is not the strongest currency anymore - another Dollar is, this time from Australia, and the reason is a hawkish stance from the RBA. A few hours ago, we got an expected 25bp rate rise but what was more important was the statement from the RBA. They admitted that the inflation is higher than expected and that higher rates would be needed to ensure that the inflation returns to the target between two and three per cent.

Today’s calendar has two more gems in it. The first one is a speech by FED’s Chairman Powell and we can’t wait to hear his comments on the outstanding Friday job report. Half an hour after Jerome Powell, we will also hear a speech by the BOC Governor Macklem.

Indices were mostly bearish yesterday but the scale of the drop was not scary. Futures start Tuesday mostly on the green side of the market. The mid-term bullish sentiment is still alive and doing pretty well. It is worth noticing that oil stopped falling, even despite the stronger USD. This brings a bit of hope but the dominant sentiment is still negative.

Earnings season is still here and we just found out the numbers of a big oil player – BP, who posted their record 2022 earnings. They thus join other energy giants posting their record earnings like Exxon Mobil, Shell, and Chevron. This might then at least partially explain why we pay so much for petrol, right?