The ICE-calculated index showing the dollar’s dynamics against six currencies (euro, Swiss franc, yen, Canadian dollar, pound and Swedish krone) is losing 0.03% in trading, while the broader WSJ Dollar Index is stable.
The minutes of Wednesday’s Jan. 31-Feb. 1 U.S. Central Bank meeting showed that Fed policymakers plan to continue raising rates, believing that current levels are not enough to curb economic activity to beat inflation. At the same time, they believe that the cycle of rate hikes could be completed this year.
According to the minutes, meeting participants also noted that the restrictive policy will need to be maintained until the Central Bank has “confidence that inflation is on the path to a steady decline to the 2% level.”
Eurozone inflation stats released Thursday confirmed investors’ view that the European Central Bank will continue to tighten policy sharply.
According to final data from the European Union Statistical Office (Eurostat), consumer prices excluding food and energy (CPI Core Index, an indicator of core inflation) rose at a record annual rate of 5.3% in January. They had been previously reported to have risen 5.2% in January, and analysts did not expect the data to be revised.
The estimate for consumer price growth as a whole was revised to 8.6% annualized from the previously announced 8.5%, Eurostat said.
The euro/dollar pair was trading at $1.0603 as of 8:15 a.m., up from $1.0596 at market close on Thursday.
The pound is at $1.2023 from $1.2013 the day before.
The U.S. currency fell to 134.58 yen against 134.68 yen in trading during the previous session.
Kazuo Ueda, who was nominated as the head of the central bank by the Japanese government said during his speech in the parliament on Friday that he considered it reasonable to keep ultra soft monetary policy in Japan in order to achieve the central bank’s inflation target. At the same time, he made it clear that he sees various options for controlling the yield curve of government bonds in the future.
The U.S. Defense Department has announced a new security assistance package for Ukraine to reaffirm the United States’ unwavering support for Ukrainian defenders and strengthen Ukraine’s air defense. The U.S. Defense Department press office said this on the anniversary of Russia’s full-scale invasion of Ukraine.
“This package, totaling $2 billion, is being provided by the Ukraine Security Assistance Initiative (USAI) as part of our commitment to Ukraine’s long-term security. Specifically, the United States is providing additional unmanned aerial systems (UAS) and counter UAS and electronic warfare capabilities, as well as critical ammunition stocks for artillery and high-precision firearms that will strengthen Ukraine’s ability to repel Russian aggression,” the announcement stated.
Oil prices rose on Friday for the second consecutive session, despite data from the U.S. Department of Energy on a significant increase in oil inventories in the country.
April Brent crude futures on London’s ICE Futures exchange stood at $82.91 a barrel by 7:10 a.m. Friday, up $0.7 (0.85%) from the previous session’s close. Those contracts rose $1.61 (2%) to $82.21 a barrel on Thursday.
The price of WTI futures for April oil grew by $0.66 (0.88%) to $76.05 per barrel at electronic trades of the New York Mercantile Exchange (NYMEX) by that time. At the end of previous session the cost of contracts grew by $1.44 (2%) to $75.39 per barrel.
Commercial oil inventories in the United States rose 7.65 million barrels last week to 479.04 million barrels, the highest since May 2021, the nation’s Energy Department’s weekly report showed.
Stocks at the Cushing terminal, where NYMEX traded crude oil is stored, rose for the eighth straight week to their highest since June 2021.
Distillate stocks increased by 2.7 million barrels, while gasoline reserves unexpectedly declined by 1.86 million barrels.
The oil market has remained in a narrow price range – about $11 per barrel – since the beginning of 2023. On the one hand, it is supported by expectations of increased demand in China after the lifting of quarantine restrictions and fears of supply reduction in the market due to the reduction of Russian production. On the other hand, the market fears weakening of the American economy amid tightening of the monetary policy by the Federal Reserve System (FRS), notes Bloomberg.
“A stronger increase in business activity in China is needed for a solid rebound in oil prices,” notes Saxo Capital Markets analyst Charo Chanana.
Shakhtar Donetsk have beaten Rennes on penalties to reach the last 16 of the UEFA Europa League.
The main time ended 1-0 in favour of the French team, with Shakhtar winning the first leg by the same score.
In extra time, the teams traded goals with Rennes netting on 119 minutes. And then the Pitmen’s goalkeeper Anatoliy Trubin managed to put away three penalties in the penalty shoot-out to lift the Ukrainian team into the 1/8 tournament.
Forecast of dynamics of changes in GDP in % for 2022-2024 in relation to previous period
Source: Open4Business.com.ua and experts.news
China unveiled a 12-point peace plan Friday to end the Ukraine-Russia war.
The document, posted on the Foreign Ministry’s website, lists the first point as “respect for the sovereignty of all countries.” “The universally recognized norms of international law, including the purposes and principles of the United Nations Charter, must be strictly observed. The sovereignty, independence and territorial integrity of all countries must be effectively protected,” the text reads.
“A rejection of the Cold War mentality. The security of a country should not be secured at the expense of others. The security of the region should not be ensured by the strengthening or expansion of military blocs,” the 2nd paragraph notes.
Among China’s other proposals is a cessation of hostilities. “All sides should support Russia and Ukraine to work in the same direction and resume direct dialogue as soon as possible in order to gradually de-escalate the situation and eventually reach a comprehensive ceasefire,” it says.
China also proposes resolving the humanitarian crisis, protecting civilians and prisoners of war (POWs), securing nuclear power plants, reducing strategic risks (no nuclear weapons and no nuclear wars), promoting grain exports, ending unilateral sanctions, maintaining the stability of production and supply chains, and promoting post-conflict reconstruction.
The Embassy of the People’s Republic of China in Kyiv specified to Interfax-Ukraine that the document was based on the “four necessities” proposed by President Xi Jinping; the “four common positions” to be followed by the international community; and the “Three Observations” on the crisis.
As the embassy explained, the “four necessities” are that the sovereignty and territorial integrity of all states should be respected, the purposes and principles of the UN Charter should be observed, the rational security concerns of all countries should be taken seriously, and all efforts contributing to a peaceful resolution of the crisis should be supported.”
“The four ‘common positions’ to be followed by the international community imply that the international community should support all efforts contributing to a peaceful resolution of the crisis in Ukraine and call on the parties concerned to remain prudent, exercise restraint, and establish direct contacts as soon as possible and create conditions for renewed negotiations; together oppose the use or threat of use of nuclear weapons, advocate the unacceptability of nuclear weapons and the conduct of nuclear war
“Three observations” on the crisis – “There are no winners in conflicts and wars,” “Complex problems have no simple solutions,” “Confrontations between great nations must be avoided
Meanwhile, on Thursday, the UN General Assembly voted in favor of the resolution “Principles of the United Nations Charter underlying the achievement of a comprehensive, just and lasting peace in Ukraine,” a draft of which was submitted by 57 countries, including Ukraine.
According to the resolution, the General Assembly “reiterates its demand that the Russian Federation immediately, fully and unconditionally withdraw all of its armed forces from the territory of Ukraine within its internationally recognized borders, and calls for a cessation of hostilities.
The resolution also calls for “the immediate cessation of attacks on Ukraine’s critical infrastructure and any deliberate targeting of civilian objects, including homes, schools and hospitals.
China abstained from voting for the resolution.
