These Are the Key Market Risks Investors Need to Digest Now!


 The US dollar is still showing a strengthening pattern in Tuesday's trade yesterday in the New York session as investors are increasingly wary of more turbulence next week.

Awaiting the results of the last FOMC meeting of the year, the uncertainty regarding the decision to set monetary policy by the Federal Reserve (Fed) is seen to invite uncertain movements, especially for the US dollar until the beginning of next week.

Previously, Fed Chairman Jerome Powell has stated that interest rate hikes have begun to slow down.

However, the positive published economic data of the United States (US) fueled expectations for policy tightening by the central bank which is likely to continue.

Adding to investor vigilance, market sentiment began to look mixed towards the end of the week.

Positive developments in China with reports of the easing of restrictions in several key locations are seen to drive recovery such as demand for global crude oil.

However, service sector activity in China which was reported to have fallen to a 6-month low is starting to inject concern again.

Because of that, the crude oil market declined even worse after showing excellent performance at the beginning of the week, especially on Brent and WTI US crude oil prices.

In addition, the tension between Europe and Russia is also in the world's attention regarding the price limit of $60 per barrel imposed on Russian crude oil by the G7. However, the decision was not approved by Russia.

In other reports about Russia, the issue of war is back in the spotlight when it is reported that Russia has launched missile fire into Ukraine resulting in the latest deaths and destruction of homes.

Ukrainian President Volodymyr Zelenskiy announced that 70 missiles had been launched and at least 4 lives had been lost.

Investors are likely to be more wary of being in the market with market sentiment reassessed as risky.

Other major markets such as stocks, commodities and crypto are also currently in decline with the current factors influencing the market.