Japanese officials have recently strengthened their verbal intervention in the JPY exchange rate, so the depreciation of the JPY is expected to ease. In technical terms, the JPY oscillates and adjusts at highs, with the possibility of further pullbacks.

Intensive and aggressive interest rate hikes by many central banks may stimulate risk aversion sentiment in the market, thereby weakening the EUR.

Market expectations of the terminal interest rate of the Federal Reserve (Fed) and risk aversion can support the US dollar (USD) to the upside.

The Bank for International Settlements assessed in its quarterly report on Monday that replacing Russia's oil supplies could be a daunting task for the West in the long run. The fundamental problem is Russian oil's huge market share, as Russia alone accounts for 10% of global oil exports. In addition, losing supplies of Russian oil products would have a major negative impact on the global economy, and other producers are unlikely to have enough capacity to fill the shortfall. Also, investment in discovering and drilling new wells remains below pre-pandemic levels. However, the G7 agreed this month to set a price cap on Russian oil exports. 

SZSE Component Index was at 11,274.86 points, up 0.61%; Growth Enterprise Index was at 2,366.79 points, up 0.70%; SZSE SME Composite Index was at 7,766.54 points, up 0.63%. In the stock market, power equipment led the rise, and automotive, petroleum, petrochemicals, coal, non-ferrous metals, basic chemicals, and other sectors were among the top gainers. While social services led the decline, and banks, real estate, food and beverage, pharmaceutical and biological, agriculture, forestry, animal husbandry, and fishery were weak. On the news, Li Keqiang said that China's economy keeps running in a reasonable range and is generally in a recovery trend. China's National Development and Reform Commission said it will accelerate the first batch of 300-billion-yuan policy-oriented development financial instruments to form a physical workload as soon as possible. Many banks have lowered their listed deposit rates and the cap on rate increases.

Gold prices are at risk of further declines due to expectations of a sharp Fed rate hike. Technically, after the price falls below 1680, it will be biased to the downside both in the short and medium terms.