Headlines:
- Russian court lifts suspension for Caspian oil pipeline operations - Fined $3,300
- German economy minister, Czech industry minister in joint statement on Nat Gas supplies
- Spain energy minister urges utilities to reduce LNG imports from Russia
- US reportedly to use Quad talks to get India, Japan on board Russian oil price cap
- Nord Stream 1 Gas Pipeline Planned Maintenance Has Started - Operator
- Norway CPI YoY (Jun) Act: 6.3% Prev: 5.7% Fcst: 5.9%
- US reportedly considering possible resumption of offensive weapons to Saudi Arabia
Markets:
- USD leads, AUD lags on the day
- European equities lower; S&P 500 futures down 0.6%
- US 10-year yields down 6.6 bps to 3.035%
- Gold down 0.4% to $1,734.98
- WTI crude down 2.5% to $102.19
- Bitcoin down 6.2% to $20,488
Risk tones are more on the defensive to start the new week as equities retreated with the focus staying on recession risks while bond yields also dropped. It was a straightforward switch to the dollar as the greenback dominated proceedings in European morning trade.
USD/JPY touched 137.25 early in Asia before running higher again now to 137.40 levels, its highest since 1998.
The greenback also posted solid gains elsewhere with EUR/USD down 0.9% to below 1.1000 and GBP/USD down 0.7% to 1.1930, near the lows for the day currently.
With equities looking sluggish, USD/CAD breached 1.3000 and AUD/USD fell by over 1% to below 0.6800 - currently 0.6770 on the day.
There's still no alternative besides the rampaging dollar for now, as markets look to sort out their feet in dealing with the outlook beyond inflation. Recession risks are a key factor that is slowly coming to the forefront and Europe's gas crunch won't ease worries on that in the months ahead.
