The EUR is the strongest and the AUD is the weakest as NA traders enter for the day

The EUR is the strongest and the AUD is the weakest as the NA session begins. China becomes an important driver as Shenzhen was put under lockdown due to Covid outbreak. Shenzhen is an important manufacturing hub in China. The Jilin region was also fresh lockdown measures. Hong Kong is also suffering from an outbreak of omicron. In separate news, US and China officials will be meeting in Rome in an attempt to limit/stop any aid that the Chinese may provide Russia that would undermine sanctions.

In Ukraine, there is further hopes for peace as officials suggested there may be soon produce a draft agreement. IN US, officials are supporting the idea that Russia is showing signs of movement toward agreement. Meanwhile, Russian military aggression in Ukraine continues unabated.

Crude oil is moving lower on the back of potential peace and lower demand from China lockdown.

US yields are higher. US stocks had the Dow up over 400 points but is up about 1/2 that gain currently. The Nasdaq has moved into negative territory.

The calendar in the US is empty with the  Federal Reserve 
Federal Reserve

The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the US while buttressing a financial system for the country. Its general duties are setting and guiding monetary policy and overseeing effective economic operation, both of which are at the service of the public interest.How the Federal Reserve Affects ForexThe Fed can materially impact the US dollar by virtue of the interest rate it sets, measured by the Board of Governors of the Federal Reserve System. The current interest rate and the expectations of future interest rate changes can influence the value of the US Dollar. For example, if traders anticipate a change in interest rates based on announcements from the Board of Governors, this can cause the US dollar to appreciate or depreciate in value against other currencies.Forex traders should always be aware of meetings and announcements from the Fed and should keep track of developments within the central bank.Ultimately, the Federal Open Market Committee (FOMC) holds eight regular meetings per calendar year, where policies and interest rates are discussed and agreed upon. The best course of action is to keep up with news ahead of these meetings as a forex trader to make predictions about interest rates, and whether to buy or sell the US dollar.

The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the US while buttressing a financial system for the country. Its general duties are setting and guiding monetary policy and overseeing effective economic operation, both of which are at the service of the public interest.How the Federal Reserve Affects ForexThe Fed can materially impact the US dollar by virtue of the interest rate it sets, measured by the Board of Governors of the Federal Reserve System. The current interest rate and the expectations of future interest rate changes can influence the value of the US Dollar. For example, if traders anticipate a change in interest rates based on announcements from the Board of Governors, this can cause the US dollar to appreciate or depreciate in value against other currencies.Forex traders should always be aware of meetings and announcements from the Fed and should keep track of developments within the central bank.Ultimately, the Federal Open Market Committee (FOMC) holds eight regular meetings per calendar year, where policies and interest rates are discussed and agreed upon. The best course of action is to keep up with news ahead of these meetings as a forex trader to make predictions about interest rates, and whether to buy or sell the US dollar.
Read this Term set to start their 2-day meeting tomorrow. The decision will be announced at 2 PM tomorrow with expectations of 25 basis points (although some may argue for a full 50 BPs as the Fed is increasingly behind the curve). Later this week, the UK is to continue it’s tightening trajectory with its third hike that will take the target rate to 0.75%.