Gains in Treasury bonds strengthen dollar and open above $3,766 average

The dollar opened at an average of $3,766.10, which represents an increase of $17.95 compared to the Representative Market Rate (TRM) of $3,748.15 for today’s session.

The opening price recorded by the Set-FX platform was $3,765, the highest was $3,770.50, and the lowest was $3,760. During the day, $7.7 million was negotiated in 30 transactions.

Energy stocks fell along with oil prices as the Biden administration considered releasing large volumes of crude from US stockpiles to fight inflation.

Treasury bills gained and the dollar rose. Russian stocks rose as the country partially lifted its short-selling ban on domestic equities on Thursday, removing one of the measures that helped limit market declines after a record close.

News that Washington is preparing a plan to release about one million barrels a day helped reverse the crude rally ahead of the OPEC+ supply meeting, where the cartel approved its May target. Rising global prices risk turning into a 1970s-style inflation shock, according to hedge fund Brevan Howard Asset Management.

Ukrainian President Volodymyr Zelenskiy has accused Russia of trying to harm the country’s agricultural sector and potentially sparking a global food crisis. The head of NATO said that Russian forces have not withdrawn from parts of Ukraine.

Unemployment Claims in the USA. It rose more than expected last week, but overall levels remain low. Meanwhile, inflation-adjusted spending in the US fell last month as higher prices softened demand.

“Quarter assessments aside, oil is getting a lot of attention,” Simon Ballard, chief economist at First Abu Dhabi Bank, said in a note to investors, according to Bloomberg. Still, he added, “all the usual suspects keeping the market in check remain in play, including the specter of the Fed, which is pursuing an aggressive path of monetary policy normalization in the coming months.”

Inflation in France set a new record, accelerating more than expected after unexpectedly high readings from Germany and Spain on Wednesday.

Global stocks are heading for their worst quarter in two years amid concerns about slowing growth as the war in Ukraine fuels commodity market volatility.

Buyers are also nervous about the prospect of a sharper pullback from the stimulus, as the fastest inflation in a generation forces central banks to be more aggressive in rate hikes. Markets now see a strong possibility that the Federal Reserve will raise interest rates by half a point at its May meeting.

Meanwhile, Chinese data and regulatory concerns weighed on Asian stocks. According to sources familiar with the matter, Chinese officials are planning to raise several hundred billion yuan for a new fund to support troubled financial companies.

The group eliminated the Agency as the Organization of the Petroleum Exporting Countries (OPEC+) and its allies, including Russia, prepared to stick to plans for a modest increase in oil production in May, according to sources. IEA) from data collection reflecting an increasingly hostile confrontation with the West.

US WTI crude fell 4.19% to $103.39, while European Brent crude fell 3.59% to $107.47.

The group has resisted repeated calls from the US and IEA to cool prices, which are approaching an all-time high amid concerns over supply cuts from Russia, after Washington and Brussels imposed sanctions on Moscow for its invasion of Ukraine. .

“Saudi Arabia is keen to avoid a conflict with Russia by adding more barrels at a time when Russian production is down,” Investec’s Callum Macpherson told Reuters.

Saudi Arabia and the United Arab Emirates, which have most of OPEC’s spare production capacity, have resisted calls to increase production, arguing that the group should stay out of politics and focus on stabilizing oil markets.

U.S. President Joe Biden’s administration is assessing up to 180 million barrels of oil from the Strategic Petroleum Reserve (SPR), and the IEA will meet on Friday to decide on a bulk crude release.

Source: Lare Publica

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