EU

The EU’s Borrell continues to discuss sanctions, but there are still some issues to work out

The EU is still unable to reach an agreement on Russian oil sanctions

Europe’s struggle for solidarity continues. Borrell says he hopes this can be resolved by the Foreign Affairs Council meeting next week, but that no one should hold their breath.

Dollar

Push and pull sees the dollar little changed on the day

The dollar regains some ground after early gains were reversed

Most major currencies are now trading within 0.1 percent change against the dollar on the day, implying more of a push and pull feel for the time being The dollar was stronger after yesterday’s gains, but it lost some ground early on, as previously mentioned.

However, the EUR/USD is still hovering around 1.0560 and the GBP/USD is back down to 1.2320, down 0.1 percent on the day. Commodity currencies have also weakened against the US dollar, with USD/CAD rising to just above 1.3000 and AUD/USD falling 0.1 percent to 0.6945:

The aussie and the loonie remain two key currencies to watch as technicals begin to crack and risk sentiment comes into focus.

So far in European morning trade, equities have held a modest rally, with European indices up 0.6 percent to 1.3 percent, while S&P 500 futures are up 0.9 percent. However, it is still early in the day.

Oil

The OPEC+ hierarchy will stick to their guns

UAE energy minister: Oil market is balanced, no need to pump more Expect nothing less than a continuation of oil prices above $100.

The more difficult global economic outlook will also not motivate them to act more decisively.

Equities

Eurostoxx +1.1 percent, Germany DAX +1.3 percent, France CAC 40 +1.1 percent, UK FTSE +0.6 percent, Spain IBEX +0.8 percent, Eurostoxx +1.1 percent, Germany DAX +1.3 percent & France CAC 40 +1.1 percent

S&P 500 futures are also continuing to rise, currently up 0.9 percent.

Meanwhile, Nasdaq futures are up 1.4 percent as equities sentiment is expected to improve slightly following yesterday’s disastrous performance.

It’s still early in the day, so don’t rule out a potential risk mood shift later in the day or later this week

BOJ

Kuroda of the BOJ: We haven’t decided whether to issue CBDC yet. BOJ Governor Haruhiko Kuroda discusses central bank digital currencies

However, it is critical to be well prepared

This is to ensure the safety and efficiency of the overall payment system

In experimentation, the BOJ is exploring potential institutional arrangements

This includes, but is not limited to, a division of roles with the private sector

This appears to be a long way off for the time being, but as previously stated, when one major central bank begins to formalise the adoption and blaze the trail, expect the others to follow suit rather quickly.

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