<ul><li>Will deal with the crisis in people’s energy bills</li><li>Will deal with long-term issues on energy supply</li></ul><p style=““ class=“text-align-justify“>She’s going to have a tough time to balance out keeping a tight fiscal line and throwing money at the problem in trying to tackle the energy and cost-of-living crisis that is worsening in the UK. There is a good thread <a target=“_blank“ href=“https://twitter.com/Peston/status/1566703806825615362″ target=“_blank“ rel=“nofollow“>here</a> by ITV’s Robert Peston on how Truss‘ idea in dealing with surging energy prices might not actually work out well.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>The JMMC meeting seems to be taking a bit longer than expected but if this is the decision, it is a symbolic one. As mentioned at the start of the day, such a move will be bullish for oil prices and we are seeing a reaction already. WTI crude just hit a high of $90.10 on the day, up over 3% at the moment.</p>

This article was written by Justin Low at www.forexlive.com.

<p>Headlines:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/dollar-in-control-to-start-the-new-week-20220905/“>Dollar in control to start the new week</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/european-benchmark-dutch-ttf-gas-futures-open-up-26-higher-to-start-the-week-20220905/“>European benchmark Dutch TTF gas futures open up 26% higher to start the week</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/russia-says-europe-is-to-blame-on-nord-stream-shutdown-20220905/“>Russia says Europe is to blame on Nord Stream shutdown</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/pboc-cuts-fx-reserve-ratio-by-200-bps-to-restrain-yuan-weakness-20220905/“>PBOC cuts FX reserve ratio by 200 bps to restrain yuan weakness</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/eurozone-august-final-services-pmi-498-vs-502-prelim-20220905/“>Eurozone August final services PMI 49.8 vs 50.2 prelim</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/eurozone-september-sentix-investor-confidence-318-vs-275-expected-20220905/“>Eurozone September Sentix investor confidence -31.8 vs -27.5 expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-august-final-services-pmi-509-vs-525-prelim-20220905/“>UK August final services PMI 50.9 vs 52.5 prelim</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/switzerland-q2-gdp-03-vs-04-qq-expected-20220905/“>Switzerland Q2 GDP +0.3% vs +0.4% q/q expected</a></li></ul><p>Markets:</p><ul><li>USD leads, EUR lags on the day</li><li>European equities lower; S&P 500 futures flat</li><li>Gold up 0.1% to $1,712.93</li><li>WTI crude up 3.2% to $89.62</li><li>Bitcoin down 1.4% to $19,681</li></ul><p style=““ class=“text-align-justify“>As Russia switches off the gas on Europe, energy prices in the region are sent jumping in the new week. We’re not revisiting the highs in the past two weeks but the surge higher is notable as concerns continue to grow about the energy crisis in Europe. For some context, the benchmark Dutch TTF futures are up 30% to €272 MW/h.</p><p style=““ class=“text-align-justify“>Regional equities are weighed lower on the worries with the DAX bearing the brunt of the declines, down nearly 3% on the day. European bond yields are also lower as the negative development weigh on sentiment.</p><p style=““ class=“text-align-justify“>In FX though, the dollar continues to reign supreme with EUR/USD briefly trading to fresh 20-year lows below 0.9900 before keeping 0.3% down around 0.9920 currently. GBP/USD continues to be pressured below 1.1500, though the pair is holding off the lows for now near the figure level.</p><p style=““ class=“text-align-justify“>USD/JPY is also sticky above 140.00 as buyers look to build on a firm extension above the key psychological level while AUD/USD is down 0.3% to just below 0.6800 as the downside pressure builds amid a stronger dollar.</p><p style=““ class=“text-align-justify“>In the UK, Liz Truss is officially named the next UK prime minister but she will have a tough task ahead of her in trying to do something about the flailing economy and the energy/cost-of-living crisis that beckons.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>She took home 81,326 (~57.4%) of the votes in the Tory leadership contest against Rishi Sunak, who had 60,399 votes (~42.6%). I outlined some thoughts with regards to the pound earlier <a target=“_blank“ href=“https://www.forexlive.com/news/gbpusd-stays-pressured-on-economicenergy-worries-new-pm-eyed-20220905/“ target=“_blank“>here</a>. In short, it hardly would’ve mattered who became the next prime minister. The UK is still set for tough times economically and Truss‘ ideas of dealing with the energy crisis is one that will be difficult to navigate – either from execution or from being fiscally „responsible“.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>The dollar initially threatened to run away in the early stages today but has seen gains pull back with EUR/USD rising up from 0.9880 to 0.9940 on the day. The pair is still down 0.1% but is at least off fresh 20-year lows earlier with the 0.9900 barrier being breached temporarily.</p><p style=““ class=“text-align-justify“>GBP/USD fell to a low of 1.1444 before recovering to flat levels now around 1.1510. Liz Truss is almost certainly set to be named the next UK prime minister and the results of the voting should come in around 1130 GMT (roughly an hour from now). I talked a little about what that means for the pound <a target=“_blank“ href=“https://www.forexlive.com/news/gbpusd-stays-pressured-on-economicenergy-worries-new-pm-eyed-20220905/“ target=“_blank“>here</a>.</p><p style=““ class=“text-align-justify“>In any case, the dollar is still keeping steady overall and the technicals are still looking good as mentioned earlier <a target=“_blank“ href=“https://www.forexlive.com/news/dollar-in-control-to-start-the-new-week-20220905/“ target=“_blank“>here</a>.</p><p style=““ class=“text-align-justify“>Elsewhere, S&P 500 futures are up 0.3% but that comes after a turnaround on Friday where Wall Street faced heavy selling at the end. European indices are down today, facing the wrath of an energy crisis after Russia deepened concerns by shutting down the Nord Stream 1 pipeline.</p><p style=““ class=“text-align-justify“>The Eurostoxx is down 1.8%, the DAX down 2.2% and CAC 40 down 1.5% currently.</p><p style=““ class=“text-align-justify“>It will be a US holiday later, so there might not be much in it but just be wary of an extension of the current undertones in the market. Another key spot to watch today besides European energy is oil prices with OPEC+ set to meet within the next hour as well.</p>

This article was written by Justin Low at www.forexlive.com.