Other news

As ECB governing council member Mario Centeno stated in his recent interview with Reuters, the European Central Bank needs to hold back the pace of tightening from next month.

On Thursday, oil prices tumbled following an ease in fears of supply disruption. Investors’ sentiment recovered on the news that the Group of Seven nations (G7) agreed a plan to impose a high price cap on Russian oil.

On Wednesday, the Bank of England announced plans to sell some long-dated and index-linked gilts. These gilts were purchased by the bank in the period from September 28 to October 14 in order to provide stability to the financial markets.

BOE’s Top Economist Huw Pill declared that the bank should increase the interest rate level more. It is necessary to curb the inflationary pressure which becomes more dependent on inner factors.

The U.S. dollar fell significantly on Thursday. This is because investors, convinced of the prospect of slower interest rate hikes by the Fed, began to bet on riskier assets.

According to Bank of Canada Governor Tiff Macklem, inflation in Canada is strong and higher interest rates will be needed in order to cool the overheated economy.

Due to risks of consumer spending slowing, threats to worldwide economic stability and new rate hikes, Fed staff economists see a higher probability of a downturn to come in 2023.

Today, on November 23, the U.S. Federal Reserve’s (Fed’s) minutes of the previous meeting are to be released. Analysts at Canadian bank, Scotiabank, highlighted three key moments, which are worth looking out for.

According to the latest data on Tuesday, consumer sentiment in the euro area has significantly improved in comparison with the forecasts for November.

Investors are in no hurry to make big bets. The renewed COVID restrictions in China influence their risk appetite. In addition to this, investors are currently waiting for the Fed minutes to be released. The results of the meeting will be available on Wednesday at 19:00 GMT.