Risk sentiment improved slightly earlier in Asian session on rumors that China is going to exit its zero-Covid policy earlier. Yet the announcement of the National Health Commission on speeding up vaccination for the elderly was a big let-down. After all, Dollar, and Swiss Franc are on the softer side today so far, with Euro.
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Abu Dhabi National Oil Company (ADNOC) will cut 5% of the December crude oil supply to some term-lifters in Asia but will provide full contractual volumes in January, five sources with knowledge of the matter said on Monday. The oil producer cited the operational tolerance clause which can adjust loading volumes by typically plus or
Risk aversion is the theme of the day as protests in China spread to multiple cities. There might be talks that pressure is mounting on the government to exit zero-Covid policy early. Investors are clearly more pessimistic on guard of escalations, which could further disrupt the economy. Australian Dollar continues to lead commodity currencies as
A couple of notes from Deutsche Bank on their latest market outlook: Framework this year has emphasised on the importance of global risk premium in driving a stronger dollar The forecast profile for 2023 assumes the peak in risk premium is behind us and will continue to improve next year That includes a persistence of
Oil prices slumped on Monday as street protests against strict COVID-19 curbs in China, the world’s biggest crude importer stoked concern about the outlook for fuel demand. Brent crude dropped $2.43, or 2.9%, to trade at $81.20 a barrel at 0731 GMT, after diving more than 3% to $80.61 earlier in the session – its
I posted the early FX rates here: Monday morning open levels – indicative forex rates – 28 November 2022 The USD is up (risk sentiment is shaky) on the news out of China over the weekend on widespread protests over the Chinese Communist Party’s (mis) management of COVID policy. This from CNN for example: Protests
MMT, which is 1.7% lower than the same period last year. Production is projected lower due to a decline in acreages by 0.8% year-over-year (y-o-y) while yield is estimated to drop by 0.8% from the previous year. Kharif foodgrain production is estimated to drop by 6.2% y-o-y to 146.39 MMT mainly due to a fall
The major European stock indices are closing the day modestly higher (Italy’s stocks fell fractionally). German Dax +0.01% Frances CAC +0.08% UK’s FTSE 100 +0.27% Spain’s Ibex +0.34% Italy’s FTSE MIB bucked the trend with a -0.05% decline for the trading week: German Dax, +0.76% Frances CAC, +1.02% UK’s FTSE 100, +1.37% Spain’s Ibex, +3.55%
Silver prices recouped from a multi-year low on demand optimism. Global consumption of the precious white metal is expected to reach a record total this year, driven by post-pandemic industrial and physical investment demand. Silver was reeling under the bearish grip for the past several weeks. It was the worst-performing precious metal in 2022. A
With 30 minutes to go in US trading, the major indices are mixed with the Dow industrial average rising, the S&P near unchanged at the NASDAQ moving lower. The snapshot of the market currently shows: Dow industrial average up 180 points or 0.53% at 34373.80 S&P index is up 2.86 points or 0.07% at 4029.90
Last week, copper and other base metals remained under pressure as the US dollar rose following the US bond yields, mainly because the hawkish remarks of the US Fed weakened market expectations of a suspension of rate hikes. Prices also started the new week on a weaker note as fresh COVID-19 curbs in the top
The expectations of a smaller Fed hike in December was affirmed by FOMC minutes last week. Dollar ended as the worst performer, following mild risk-on sentiment. Canadian Dollar was the second worst as dragged down by falling oil prices. Meanwhile, Euro was the third weakest suffering some selloff against Sterling. Talking about the Pound, it’s
What are the key events and releases for next week’s trading: Tuesday, November 29: Canada GDP 8:30 AM ET. Estimate 0.2% versus 0.1% last month US consumer confidence 10 AM ET. Estimate 100.0 versus 102.5 last month Wednesday, November 30: US ADP nonfarm employment change estimate, 8:15 AM ET. Estimate 195K versus 239K last month
Gold prices were flat on Friday, but they were set for a small weekly gain buoyed by the dollar’s overall retreat on a perceived dovish tilt to the U.S. Federal Reserve’s interest rate hike strategy. FUNDAMENTALS * Spot gold was little changed at $1,753.47 per ounce by 0016 GMT. U.S. gold futures rose 0.5% to
With the US traders returning from the Thanksgiving Day holiday for an abbreviated session and the World Cup going on, the day was set up to be somewhat limited. The USD did move higher in early NA trading. However, as debt market rates ticked higher partly in reaction to a move higher in European rates
Oil rose in early trade on Friday, trimming some of the week’s losses which have been driven by worries about Chinese demand and expectations a high price cap planned by the Group of Seven (G7) nations on Russian oil will keep supply flowing. Brent crude futures inched up 13 cents, or 0.2%, to trade at
The evidence is all in the data these days and while consumer price inflation remains elevated, there are tentative signs that inflation pressures are starting to cool in Europe – at least for the time being. Let’s dig straight into the recent economic releases. France PMI “Rates of both input cost and output price inflation