Kremlin Spokesman Peskov: Putin-Biden Summit was rather positive – Interfax

Dhwani Mehta FXStreet

Commenting on the highly-anticipated meeting between US President Joe Biden and his Russian counterpart Vladimir Putin, a spokesman from Kremlin, Dmitry Peskov, said that the “Summit was rather positive.”

Additional comments

“Understanding with the US that needs to talk about stability, arms control as soon as possible.”

“Russian ambassador to return to the US in coming days.”

On Wednesday, Presidents Biden and Putin signed a joint statement vowing to launch a bilateral Strategic Stability Dialogue to lay the foundation for arms control talks and avoid nuclear war.

Russia’s Deputy Foreign Minister Sergey Ryabkov said, “The first meeting within the bilateral Strategic Stability Dialogue on arms control will happen in a matter of weeks, not months.”

Market implications

The positive US-Russia geopolitical development failed to lift the market mood, as the Fed’s hawkish signal continues to have a significant weight on the investors’ minds.

The S&P 500 futures drop 0.38% to 4,196 while the US dollar index renews two-month highs at 91.75.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD hangs close to monthly lows, still defends 0.7100 ahead of Fed decision

AUD/USD retains its negative bias for the third straight day, defending 0.7100 while trading close to a monthly low in Wednesday's Asian session on Wednesday. The US Dollar stands firm near a two-week high as the anticipated Fed rate hike and oil-driven inflation fears continue to push US bond yields to a multi-year high. Furthermore, escalating Middle East tensions benefit the safe-haven buck and weigh on the risk-sensitive Aussie.

USD/JPY holds firm above 155.00, awaits Fed policy announcements

USD/JPY climbs to a fresh one-week high above 155.00 in the Asian session on Wednesday amid a bullish US Dollar. Oil-driven inflation fears, along with the anticipated Fed rate hike, continue to support surging US bond yields. Moreover, rising US-Iran tensions underpin the USD's reserve currency status. The pair, however, remains below the mid-155.00s as bulls seem hesitant ahead of the Fed decision later today and the BoJ meeting, starting on Thursday.

Gold traders seem noncommittal below $4,350; eyes Fed rate decision

Gold clings to modest intraday gains through the first half of the European session, albeit it lacks follow-through buying and remains below $4,350. The US Dollar eases from a two-week high amid some profit-taking, offering support to the commodity. Traders, however, seem hesitant to place aggressive directional bets and opt to wait on the sidelines heading into the key central bank event risk.

Cardano's bearish breakout warns of a 15% downside risk

Cardano (ADA) hovers around $0.1900 at press time on Wednesday after a 6% decline the previous day, breaking below a crucial support level. Declining on-chain activity across the Cardano ecosystem, with reduced transaction count and Real Economic Value (REV), suggests waning user demand.

Fed decision in focus

Starting with the most important, the Fed decision. Heading into the event, data showed a rather punchy US August jobs report, which, you will likely recall, triggered a hawkish Fed rate repricing in rates markets. However, the recent US August CPI print mattered more.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.