Qatari gas carriers resume their voyages in the Red Sea

Despite the escalation of military operations, Qatari gas carriers resume their voyages in the Red Sea.

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Expectations of a 70% likelihood of a 25-basis-point reduction by the U.S. Federal Reserve in March.

The dollar rises amid bets on a faster interest rate cut and tensions in the Red Sea.

The yen declines after producer price data hits the lowest level in a year and a half.

Despite the escalating military operations, Qatari liquefied natural gas (LNG) carriers have resumed their voyages in the Red Sea, according to ship tracking data. Four carriers transporting Qatari LNG shipments have resumed their journeys after being halted for several days due to the intensification of military operations in the Red Sea.

Houthi attacks disrupted trade along the main east-west route, which carries about 12% of global shipping. According to Reuters, the Houthi group has threatened to expand its targets in the Red Sea to include U.S. ships following the U.S. and British strikes on its sites in Yemen.

Data shows that the LNG carrier “Al Rekayat” has resumed sailing through the Red Sea, heading towards Qatar, after stopping on January 13 during its journey in the Red Sea. The data also reveals that the ships Ghariyah, Hawila, and Numan, loaded with Qatari LNG, are also moving, but they have changed their course to head south, although they still indicate the Suez Canal as their destination, according to Reuters.

Federal

Expectations of a 70% likelihood of a 25-basis-point reduction by the U.S. Federal Reserve in March.

The FedWatch tool indicates that markets expect a 70% chance of the U.S. Federal Reserve lowering interest rates by 25 basis points in March, compared to 77% the previous day and 63% the previous week. This highlights the changing expectations regarding interest rate cuts. However, traders anticipate a reduction of more than 160 basis points this year, up from the 140 basis points expected the previous week.

dollar

The dollar rises amid bets on a faster interest rate cut and tensions in the Red Sea.

The U.S. dollar index witnessed a Tuesday, January 16, increase as investors scaled back their bets on an imminent interest rate cut by the U.S. Federal Reserve, following hawkish statements from European Central Bank officials. Meanwhile, concerns about more ship attacks in the Red Sea impacted risk appetite.

The U.S. dollar index rose 0.73% to 103.15 points. It had already increased in quiet trading during the U.S. holiday on the previous Monday.

The yen declines after producer price data hits the lowest level in a year and a half.

yen

The Japanese yen fell by 1.20% to 146.55 against the dollar after data showed that the producer price index remained flat in December compared to the previous year, marking the twelfth consecutive month of slowing. The data suggests that inflation acceleration will moderate in the coming months, easing pressure on the Bank of Japan to gradually move away from the negative interest rate curve soon.

Expectations of a shift in the Bank of Japan’s monetary policy have boosted the yen towards the end of 2023, with the currency rising 5% against the dollar in December. However, since then, it has sharply declined, dropping by 3% in January so far.

Qatari gas carriers resume their voyages in the Red Sea

Qatari gas carriers resume their voyages in the Red Sea

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