· More sanctions on Russia are likely to trigger a further sell-off in the ruble, according to one currency expert.
Russia's currency has already been faltering this week in the face of escalating tensions with the West in Syria, and more sanctions could be the trigger, said Simon Derrick, a chief currency strategist at BNP Mellon.
Over the last seven days, the ruble has fallen from 63 against the dollar to trade at 61.2, amid a war of words between Russia and the U.S. — and its allies — over Syria. More sanctions were expected to be imposed on Russia Monday, but the country appeared to win a reprieve with the White House stating that President Donald Trump had not yet approved additional measures.
· The United States and Britain on Monday warned of a global cyber attack targeting routers and other networking equipment, blaming Russian government-backed hackers for the campaign on government agencies, businesses and critical infrastructure operators.
The alert comes two months after the United States and Britain accused Russia of carrying out the damaging "NotPetya" cyber attack in 2017 that unleashed a virus that crippled parts of Ukraine's infrastructure and damaged computers across the globe.
· U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe will seek common ground on how to deal with North Korea’s nuclear challenge on Tuesday amid fears in Tokyo that Trump might be prone to make too many concessions.
Abe is due to arrive at Trump’s Mar-a-Lago retreat in Palm Beach, Florida, for two days of talks dominated by North Korea but also expected to cover trade, relations with China and other issues.
· Syrian anti-aircraft defenses shot down missiles fired at the Syrian air base of Shayrat in Homs province late on Monday and another base northeast of the capital, Damascus, Syria’s state television and pro-Iranian Hezbollah media said.
A Pentagon spokesman said there was no U.S. military activity in that area at this time.
Asked about the missile attack, an Israeli military spokesman said: “We don’t comment on such reports.”
· President Donald Trump has resumed his efforts to put his own stamp on the Federal Reserve, preparing to nominate one person for vice chair and another for a governor's position, CNBC has learned.
The nominees are Richard Clarida, a Columbia University economist and global strategic advisor at bond giant Pimco who was tapped for vice chair, and Michelle Bowman, Kansas bank commissioner, who the president picked for an open governor's spot.
Clarida's nominee is key in that he will be the chief deputy for new Fed Chairman Jerome Powell. The position has been vacant since Stanley Fischer left in October.
He is viewed as holding mostly conventional views on monetary policy and praised Trump's selection of Powell.
· Crude oil prices recoiled from resistance cluster in the 66.63-67.49 area (January 25 high, rising channel top, 38.2% Fibonacci expansion). From here, a move back below the 23.6% level at 63.90 opens the door for a test of channel floor support at 62.50. Alternatively, turn above 67.49 sees the next upside barrier at 70.38, the 50% Fib.
From here, crude prices are eyeing the weekly US inventory flow statistics from API. The release will be judged against forecasts calling for a meager 600k outflow to be reported in official EIA statistics due the following day. A larger draw might send prices higher. Alternatively, an unexpected build may help extend yesterday’s selloff.
Reference: Reuters,CNBC
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