gold price chart

Summary:  Still very early days, as we ponder the ongoing fallout from the turmoil in the US banking system, which has triggered a massive collapse in yields as the market brings forward the end of the Fed's tightening cycle. One significant danger is that we risk a credit crunch as banks are forced to scramble for funding and deposits. We highlight areas and indicators that are flashing red, the impact of the situation into currencies, precious metals, and equity sectors. Today's pod features Garnry on equities, Ole Hansen on commodities, and John J. Hardy hosting and on FX.


Listen to today’s podcast - slides are available via the link. Follow Saxo Market Call on your favorite podcast app: Apple  Spotify PodBean Sticher If you are not able to find the podcast on your favourite podcast app when searching for Saxo Market Call, please drop us an email at marketcall@saxobank.com and we'll look into it.   Questions and comments, please! We invite you to sen

Article by Decrypt Media

Dollar’s 2021 Rally – Over or Just Resting?

Przemysław Radomski Przemysław Radomski 17.12.2021 11:21
With the USD Index suffering a ‘sell the news’ event on Dec. 15, the FOMC’s hawkish Summary of Economic Projections wasn’t enough to uplift investors’ optimism. However, while the dollar day traders performed their usual disappearing act, the greenback’s fundamentals were bolstered by the FOMC’s median projection of three rate hikes in 2022. What’s more, while the USD Index initially dipped below 96 and fell below its rising resistance line (which is now support) on Dec. 16, buyers stepped in, and the USD Index bounced. For context, a short-term correction is possible. However, the important point is that the USD Index is likely on a medium-term path to ~98. And with gold, silver and mining stocks often moving inversely to the U.S. dollar, their optimism may disappear over the next few months. Please see below: For context, I warned that a consolidation was likely overdue by highlighting the USD Index’s overbought RSI (Relative Strength Index) readings with the red arrows above. Conversely, the blue vertical dashed lines above demonstrate how the USD Index often bottoms near the end of each month, and rallies often follow. And while the current consolidation may need some more time to run its course, higher highs should materialize over the medium term. To explain, after the USD Index recorded sharp rallies in June and July, consolidation phases unfolded before the uptrends continued. And while the secondary uprisings occurred at more moderate paces, the USD Index still managed to make new highs. As a result, ~98 should materialize during the winter months. Furthermore, if the forecast proves prescient, the USD Index’s strength will likely usher gold back to its previous 2021 lows. Adding to our confidence (don’t get me wrong, there are no certainties in any market; it’s just that the bullish narrative for the USDX is even more bullish in my view), the USD Index often sizzles in the summer sun and major USDX rallies often start during the middle of the year. Summertime spikes have been mainstays on the USD Index’s historical record and in 2004, 2005, 2008, 2011, 2014 and 2018 a retest of the lows (or close to them) occurred before the USD Index began its upward flights (which is exactly what’s happened this time around). Furthermore, profound rallies (marked by the red vertical dashed lines below) followed in 2008, 2011 and 2014. With the current situation mirroring the latter, a small consolidation on the long-term chart is exactly what occurred before the USD Index surged in 2014. Likewise, the USD Index recently bottomed near its 50-week moving average; an identical development occurred in 2014. More importantly, though, with bottoms in the precious metals market often occurring when gold trades in unison with the USD Index (after ceasing to respond to the USD’s rallies with declines), we’re still far away from that milestone in terms of both price and duration. Again, the recent move higher in the USD Index doesn’t necessarily apply in the case of the above rule, as it was not the strength of the USD but the weakness in the euro that has driven it. Likewise, with the USD Index now approaching its long-term rising support line (which is now resistance), a rally above the upward sloping black line above would invalidate the prior breakdown and support a move back above 100. Also, please note that the recent medium-term rally has been calmer than any major upswing witnessed over the last 20 years, where the USD Index’s RSI has hit 70. I marked the recent rally in the RSI with an orange rectangle, and I did the same with the second-least and third-least volatile of the medium-term upswings. The sharp rallies in 2008 and 2014 were of much larger magnitudes. And in those historical analogies, the USD Index continued its surge for some time without suffering any material corrections. As a result, the short-term outlook is more of a coin flip. However, the medium-term outlook remains profoundly bullish, and gold, silver, and mining stocks may resent the USD Index’s forthcoming uprising. Just as the USD Index took a breather before its massive rally in 2014, it seems that we saw the same recently. This means that predicting higher gold prices (or the ones of silver) here is likely not a good idea. Continuing the theme, the eye in the sky doesn’t lie. And with the USDX’s long-term breakout clearly visible, the wind remains at the dollar’s back. Furthermore, dollar bears often miss the forest through the trees: with the USD Index’s long-term breakout gaining steam, the implications of the chart below are profound. And while very few analysts cite the material impact (when was the last time you saw the USDX chart starting in 1985 anywhere else?), the USD Index has been sending bullish signals for years. Please see below: The bottom line? With my initial 2021 target of 94.5 already hit, the ~98 target is likely to be reached over the medium term (and perhaps quite soon), mind, though: we’re not bullish on the greenback because of the U.S.’ absolute outperformance. It’s because the region is fundamentally outperforming the Eurozone, the EUR/USD accounts for nearly 58% of the movement of the USD Index, and the relative performance is what really matters. In conclusion, gold, silver and mining stocks pulled rabbits out of their hats on Dec. 16. However, as 2021 has demonstrated, their daily tricks often lose their allure fairly quickly. Moreover, while it’s uncommon for magicians to reveal their secrets, the precious metals tip their hands time and time again. As a result, the USD Index’s daily weakness was likely a corrective downswing, while the precious metals daily strength was likely a corrective upswing. And with a reversal of fortunes likely to occur over the medium term, gold, silver and mining stocks may lose their magic touch. Thank you for reading our free analysis today. Please note that the above is just a small fraction of today’s all-encompassing Gold & Silver Trading Alert. The latter includes multiple premium details such as the targets for gold and mining stocks that could be reached in the next few weeks. If you’d like to read those premium details, we have good news for you. As soon as you sign up for our free gold newsletter, you’ll get a free 7-day no-obligation trial access to our premium Gold & Silver Trading Alerts. It’s really free – sign up today. Przemyslaw Radomski, CFAFounder, Editor-in-chiefSunshine Profits: Effective Investment through Diligence & Care * * * * * All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be subject to change without notice. Opinions and analyses are based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are deemed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.
Gold Chart And Silver Chart Look Quite Similar We Might Say...

Gold Chart And Silver Chart Look Quite Similar We Might Say...

Przemysław Radomski Przemysław Radomski 19.01.2022 15:10
  While the USD show is gaining applause, silver has decided to present its repertoire too. Was its rally just a magic trick or a good omen for gold? Bond yields soared once again, just as I’ve been expecting them to for many months now. The reaction in some markets was as expected (the USD Index soared), but in some, it was perplexing. Gold moved lower a little, miners declined a bit more, and silver… rallied. Who’s faking it? Well, perhaps nobody is. Let’s look at the yields’ movement first. The 10-year bond yields have just moved to new yearly highs and are also above their 2021 highs. This happened just after they moved back to their 50-week moving average (marked in blue). For a long time, I’ve been writing that the 2013 performance is likely to be repeated also in this market, and that’s exactly what is taking place right now. Bond yields are doing what they did back then. If history continues to rhyme, we can expect bond yields to rally further, the USD Index to gain, and we can predict gold at lower prices. Speaking of the USD Index, let’s take a look at what it did yesterday. It soared over 0.5 index points, which was the largest daily increase so far this year. This happened after the USD Index moved to a combination of powerful support levels: the rising medium-term support line and the late-2020 high. The tiny attempts to move below those levels were quickly invalidated, and the USD Index was likely to rally back up; and so it did. What’s next? The uptrend was not broken, so it’s likely to continue. In other words, the USD Index’s rally is likely to continue, and this, in turn, is likely to trigger declines across the precious metals sector. Gold didn’t react with a significant decline yesterday – just a moderate/small one – which some might view as bullish. I’d say that it’s rather neutral. The rally above the 2021 highs in bond yields might have come as a shock to many investors, and they might not have been sure how to react or what to make of it. It might also have been the “buy the rumor, sell the fact” type of reaction. Either way, it seems to me that we’ll have to wait a few days and see how it plays out once the dust settles. The volume that we saw yesterday was huge. After a period of relatively average volume, we saw this huge volume spike. I marked the previous cases with red arrows. In those cases, such volume accompanied gold’s sizable declines. This time, the volume spike accompanied a $4.10 decline, which might appear perplexing. Fortunately, gold is not the only market that we can analyze, and – as it’s often the case – context provides us with details that help to make sense of what really happened. Let’s check the key supplemental factor – silver’s price action. While gold declined a bit, silver soared over $0.5! The volume that accompanied this sizable daily upswing was the biggest that we’ve seen so far this year too. The latter provides additional confirmation of the importance of yesterday’s session. What was it that happened yesterday that was so important? Silver outperformed gold on a very short-term basis! This is profoundly important, because that’s what has been accompanying gold’s, silver’s, and mining stocks’ tops for many years. Knowing to pay attention to even small signs of silver’s outperformance is one of the useful gold trading tips, and the extent of the outperformance is what determines the importance of the signal (and its bearishness). The extent was huge yesterday, so the implications are very bearish. Yes, silver moved to new yearly highs as well, but silver is known for its fake breakouts (“fakeouts”), which usually happen without analogous moves in gold and mining stocks. Since neither gold nor miners moved to new yearly highs yesterday, it seems that silver “faked out” once again. Silver is up in today’s pre-market trading, and gold is up only slightly, but the latter is not even close to moving to new 2022 highs. The GDX ETF is actually down in today’s London trading (at the moment of writing these words). Speaking of mining stocks, let’s take a look at what happened in them yesterday. In short, they declined – by over 1%, which is about five times more than gold. Since silver outperformed gold, while gold miners underperformed it, the implications for the precious metals sector are bearish. Thank you for reading our free analysis today. Please note that the above is just a small fraction of today’s all-encompassing Gold & Silver Trading Alert. The latter includes multiple premium details such as the targets for gold and mining stocks that could be reached in the next few weeks. If you’d like to read those premium details, we have good news for you. As soon as you sign up for our free gold newsletter, you’ll get a free 7-day no-obligation trial access to our premium Gold & Silver Trading Alerts. It’s really free – sign up today. Przemyslaw Radomski, CFAFounder, Editor-in-chiefSunshine Profits: Effective Investment through Diligence & Care * * * * * All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be subject to change without notice. Opinions and analyses are based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are deemed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.
Technical Analysis: Moving Averages - Did You Know This Tool?

Gold Price Chart Might Make Some Investors Happy, US 30 With Reds

John Benjamin John Benjamin 21.01.2022 08:59
XAUUSD breaks resistance Gold surged over geopolitical tensions between the West and Russia over Ukraine. Following a three-week-long sideways grind, the break above the triple top at 1830 indicates strong commitment from the buy-side. 1850 is the next level to clear, which would lead to November’s peak at 1877. The RSI has shot into the overbought area, and some profit-taking could briefly drive the price lower. Buyers may see a pullback as an opportunity to join in. 1820 near the base of the recent rally is a key support in this case. AUDUSD seeks support The Australian dollar climbed back after the unemployment rate dropped to 4.2% in December. A surge above 0.7270 was the bulls’ attempt to initiate a reversal. As sellers covered their bets, the way might be open for a meaningful rebound. The follow-up correction met solid buying interest at 0.7170. Sentiment would remain upbeat as long as price action stays above this key support. 0.7290 is an important hurdle and its breach could trigger a runaway rally towards 0.7420. US 30 tests major support The Dow Jones 30 retreats as traders take profit ahead of next week’s Fed meeting. The index has given up all its gains from the late December rally and fell through the daily support at 34700. This bearish breakout could extend losses to the psychological level of 34000, a critical floor to prevent a deeper correction in the medium-term. The RSI’s oversold situation may attract some buying interest. Nonetheless, the bulls will need to lift offers around 35500 in a show of force, in order to turn sentiment around.
Intraday Market Analysis – NZD Attempts To Rebound

Intraday Market Analysis – NZD Attempts To Rebound

Jing Ren Jing Ren 13.04.2022 07:50
NZDUSD tests resistance The New Zealand dollar bounced back after the RBNZ raised its interest rates by 50bp. The pair came under pressure after hitting resistance near the psychological level of 0.7000. The kiwi then saw bids at 0.6810 near the base of a previous bullish breakout. A rally above the support-turned-resistance at 0.6900 may turn sentiment around. The next hurdle will be 0.6950. A fall below 0.6810 could trigger a sell-off towards the daily support at 0.6740. And that is an important level safeguarding the March rebound. Related article: ECB To Shock Markets In The Following Week!? US Dollar Rate Under Pressure As Well! XAUUSD bounces higher Gold rallied after US inflation in March came out less than market participants had expected. The metal’s medium-term uptrend is still intact as long as the price is above the major support at 1895. The recent consolidation could be an opportunity for the bulls to accumulate. A break above 1965 prompted some sellers to cover. This could also pave the way for a bullish reversal. 1990 is the next hurdle and its breach may send bullion to the March high at 2070. 1940 is the immediate support in case of a pullback. UK 100 seeks support The FTSE 100 struggles as UK consumer confidence wanes amid geopolitical uncertainty. The index has met stiff selling pressure near the recent peak (7690). A combination of profit-taking and fresh selling weighs on price action. Nonetheless, sentiment remains upbeat. And a bullish MA cross on the daily chart suggests strong impetus in the latest recovery. 7530 is fresh support and 7450 is the second line of defense in case of a deeper retreat. The bulls need to clear 7650 before they could regain the upper hand in the short term. Analysis: Gold prices (XAUUSD) increase inlight of the U.S. announcing their new inflation rate - Chart Of The Day By FXMAG.COM
(USD) Dollar Is Losing 1%! Price Of Gold (XAUUSD) To Reach $2500 This Year?

(USD) Dollar Is Losing 1%! Price Of Gold (XAUUSD) To Reach $2500 This Year?

Alex Kuptsikevich Alex Kuptsikevich 14.04.2022 11:07
The Dollar is correcting on Thursday morning, losing around 1% from Wednesday's peak, when the dollar index rose to its highest since May 2020. It has caught our attention that Gold and the Dollar have been moving in tandem since the start of the year, a historically rare and short-lived combination that has only intensified recently. Gold and the Dollar have risen back-to-back over the past week, having retreated somewhat from local highs yesterday. The correlation between the Dollar and Gold is easily explained by the flight of investors away from the conflict. The pull into Gold is more like a knee-jerk reflex. Much of it is speculation that investors will buy Gold as protection against inflation, financial system weakness or geopolitical instability. However, it is worth realising that the alternative to traditional finance now is not Gold, but cryptocurrencies, which have no storage costs and are better shareable and transferable. Related article: ECB Interest Rate Decision Is Coming! European Indices (DAX, CAC40) To Plunge Or Rise? What About Forex Pairs? In modern finance, Gold often gets a role of a commodity asset. In other words, we could see this correlation break down as early as the next few days. And from the fundamental point of view, the chances are higher that the dollar offensive might be renewed in the coming days. On Wednesday and Thursday, we see typical profit-taking before the long weekend after the rally. Behind the Dollar are expectations of extremely hawkish moves by the Fed, as FOMC members are fuelling the idea of a one time 50-point rate hike in early May and are not ruling out one or two more such moves at subsequent meetings. So far, the economy has allowed and is even begging for the screws to tighten. At the same time, we should not forget that markets, especially the currency markets, are a waiting game. The Dollar climbed so high on a wave of extreme expectations. Analysis: Wheat Futures Prices Influenced, By Weather, Naturally! Their easing has the potential to trigger a reversal. The dollar index hit bottom at the end of May last year. And we wouldn't be surprised if, at the end of the May 4th meeting or after the next employment release on May 6th, the Dollar hits the ceiling, as investors will gradually lock in profits and roll back expectations. The Dollar's reversal may push Gold prices to new historic highs above $2100 by the end of this quarter and exceed $2500 before this year ends.
Price Of Gold (XAUUSD) Hitting $3000!? Gold almost reached $2000! Russia-Ukraine Conflict Doesn’t Hold Back. Will The Price Of Gold Go Any Higher?

Price Of Gold (XAUUSD) Hitting $3000!? Gold almost reached $2000! Russia-Ukraine Conflict Doesn’t Hold Back. Will The Price Of Gold Go Any Higher?

Mikołaj Marcinowski Mikołaj Marcinowski 18.04.2022 18:24
According to Reuters, Lviv has been attacked today and some people were killed what brings out another increase of prices around the world. Of course the safe haven has risen as well and we’re wondering what will be this week’s high of the yellow precious metal. Price Of Gold To Rise Further? Today’s price is as high as it was in March - the precious metal is back soaring, but it’s not sure, how long will the bullish trend last. As we see gold has been trading that high a few times in the last 3 months. The first appearance of definitely bullish gold is the beginning of the warfare so February 24th and March 8th when it was known, that negotiations didn’t took us to Russia-Ukraine ceasefire. Related article: Deutsche Bank Shook DAX! French Election, Inflation And ECB Are Factors Which Shaped DAX (GER 40), CAC40, FTSE 100 And IBEX35 - Top Gainers, Top Losers   Fed To Put The Gold Price Down!? Another factor which has been shaping price of gold over last months is Fed of course. Interest rate was raised by 100bps and hawkish rhetoric may suggest the tightening is not over! The influence of monetary policy is visible on the chart on the left hand side as on January 26th the interest rate was kept on the level of 0.25% and then on March 16th when the huge rate hike was “applied”. Article on Crypto: Hot Topic - NEAR Protocol! Terra (LUNA) has been seeing a consistent downward price trend, DAI Should Stay Close To $1   Price Of Gold (XAUUSD) – 3 Months Chart Source/Data: Reuters, Investing.com Charts: Courtesy of TradingView.com
EUR/USD: US Dollar (USD) Supported By A 75bp Rate Hike!? EUR Influenced By Last Week's Activities, Price Of Gold (XAUUSD) May Not Stop Below $1980

EUR/USD: US Dollar (USD) Supported By A 75bp Rate Hike!? EUR Influenced By Last Week's Activities, Price Of Gold (XAUUSD) May Not Stop Below $1980

Jing Ren Jing Ren 20.04.2022 08:12
EURUSD consolidates post-sell-off The US dollar rallies as a 75bp rate hike by the Fed could be on the table. The single currency remains under pressure after last week’s sell-off. 1.0920 has become an important supply area after buyers’ failed attempts to push higher. Further above, the psychological level of 1.1000 is another support-turned-resistance, suggesting that the path of least resistance is down. Bearish trend followers could be waiting to fade the next rebound. The pair is treading water above 1.0760 as the RSI rises back to the neutrality area. Article on Crypto: Altcoins Showing Promising Growth - Take a Look at Solana (SOL), POLKADOT (DOT) and SHIBA INU (SHIB-USD)| FXMAG.COM XAUUSD keeps high ground Gold slipped as the greenback rallied across the board amid the Fed’s increasingly hawkish stance. The previous rally cleared the resistance at 1990 but struggled to grind to the psychological level of 2000. A drop below 1961 revealed underlying weakness and caused a liquidation of leveraged buyers. 1940 at the base of a previous breakout is the next stop to gauge the bulls’ commitment. An oversold RSI may trigger a buy-the-dips behavior and lead to a limited rebound. 1980 is now the closest resistance. Read next: (UKOIL) Brent Crude Oil Spikes to Highest Price For April, (NGAS) Natural Gas Hitting Pre-2008 Prices, Cotton Planting Has Begun SPX 500 breaks channel The S&P 500 recoups losses as the quarterly earnings season heats up. The index has been sliding down in a bearish channel, which indicates a cautious mood in the short term. The latest rally above the upper band (4420) and resistance at 4460 could prompt sellers to cover their positions, paving the way for a potential reversal towards 4590. 4360 is a fresh support. In fact, a series of higher lows would show buying interest and convince followers to jump in with both feet. Otherwise, 4300 would be the next support.
USD/JPY: Japanese Authorities Signal Intervention Amid Rapid Currency Appreciation

$2000 Level Of Gold Price (XAUUSD) Noted But Not Yet Present! Awaiting Fed Vs. Gold Battle!

Alex Kuptsikevich Alex Kuptsikevich 20.04.2022 10:27
Gold is falling fast, having lost about 3% to $1940 from Monday's peak. On Monday, the bulls are locally capitulating after an unsuccessful attempt to push the price above $2000. It would be a mistake to attribute gold's fall to an expensive dollar. Since the start of the year, the dollar index and gold have had a more than 80% correlation versus -0.34% in 2021, reflecting that investors see gold and the dollar as defensive assets amid the Russia-Ukraine conflict. Yesterday the dollar index slowed its rise towards the end of the day. It reversed to a decline on Wednesday morning, while gold has been actively declining since the beginning of the week, reinforcing their close correlation. Read next: Monetary Policy Drives EUR/USD, The Future of the EUR/GBP Awaits the Bank Of England's Speech - Good Morning Forex| FXMAG.COM With EURUSD near 1.08, GBPUSD near 1.30 and USDJPY one step away from 130, the dollar is near historical extremes Gold's recent retreat could be a sign of hope for a détente in the European conflict and a desire to lock in profits from the powerful movement of recent days. As it is difficult to find signs of de-escalation in the news, we are leaning towards the second option. With EURUSD near 1.08, GBPUSD near 1.30 and USDJPY one step away from 130, the dollar is near historical extremes. The same can be seen in the Dollar Index, which since last week has been trading above 100, a psychologically crucial round level. Read next: Altcoins' Rally: Solana (SOL) Soars Even More, DOT and SHIBA INU Do The Same! | FXMAG.COM Since the beginning of February, gold has found support on the declines toward its 50-day moving average in the last rally. If a test of this level in the coming days also confirms the resilience of this support, we could see a new high soon. On the long-term gold chart, the pullback from the highs in 2020 and the subsequent smooth recovery is a handle in a "cup-and-handle" pattern, whereby a cup has formed over eight years since 2012. This pattern will gain strength should gold consolidate above $2000 with a final target near $3000.
Elon Musk Sells 8 Millions Tesla Stocks? Here Is Why!

Unexpectedly Gold Price (XAUUSD) Falls, Canada And Chicago - Weather Makes Wheat Futures Fluctuate. The Price Of Palladium - Industrial Activity Is Taking Strain

Rebecca Duthie Rebecca Duthie 20.04.2022 11:23
Summary: The price of gold fell to the lowest price in almost 2 weeks. Volatility in U.S Wheat futures due to the Weather. Palladium Prices driven down by the rising dollar index. Gold Prices Hit Lows - elevated U.S treasury yield affecting the demand of the commodity The price of gold hit its lowest value in almost 2 weeks as a result of the elevated U.S treasury yield affecting the demand of the commodity. The increase in the yields also increases the opportunity cost for investors who hold gold because the commodity is not yielding. Investor expectations of the Fed's hawkish outlook could be the reason for the price fall, especially inlight of the expected Fed Speech this week. Price Chart of Gold Read next: Altcoins' Rally: Solana (SOL) Soars Even More, DOT and SHIBA INU Do The Same! | FXMAG.COM Chicago SRW Wheat Futures - terrible weather conditions in the US and Canada are causing supply fears The price of Wheat has been volatile over the past week, the terrible weather conditions in the US and Canada are causing supply fears, however market sentiment for this commodity has struggled to shake its bearish tone. Chicago SRW Wheat Futures Price Chart Read next: (UKOIL) Brent Crude Oil Spikes to Highest Price For April, (NGAS) Natural Gas Hitting Pre-2008 Prices, Cotton Planting Has Begun Palladium Price - the war continues, the industrial activity is taking strain The price of Palladium saw an increase in price as an initial market reaction to the start of the Russia-Ukraine war, and as the war continues, the industrial activity is taking strain. However, on Tuesday, the price of palladium fell as a result of the rising dollar index. Palladium Futures Price Chart Sources: Finance.yahoo.com, economies.com
For What It Is Worthy To Pay Attention Next Week 23.01-29.01

Rising Inflation And Strong Dollar (USD), Stable Gold (XAUUSD) And Rising Yields... Crude Oil...

Ole Hansen Ole Hansen 20.04.2022 21:55
Commodities 2022-04-20 14:00 Summary:  Gold, currently up around 7% so far this year, continues to perform strongly despite persistent headwinds from rising real yields and a stronger dollar. Instead the yellow metal has increasingly been focusing on multiple uncertainties, some of which were already present before Russia invaded Ukraine. Inflation and growth concerns have both been turbocharged by war and sanctions, and together with elevated volatility in stocks and not least bonds, these developments have seen investors increasingly look for safe havens in tangible assets such as investment metals. Impressive, is the word best describing gold’s performance so far this year. Currently up around 7% during a time where normal drivers such as US real yields and the dollar have risen, normally a development that would see gold struggle. The prospect of aggressive tightening by the US Federal Reserve has driven ten-year real yields higher by more than 1% while supporting a near 4% rise in the dollar against a broad index of currencies. Last year’s relatively weak performance, especially against the dollar, despite emerging inflationary concerns was driven by portfolio managers cutting back on the holdings they accumulated during 2020 as stock markets rallied and bond yields held relatively steady, thereby reducing the need for diversification. Fast forward to 2022 and we are now dealing with multiple uncertainties, some of which were already present before Russia invaded Ukraine. Inflation and growth concerns have both been turbocharged by war and sanctions, and together with elevated volatility in bonds and not least stocks, investors have sought safe havens in tangible assets such as investment metals. During the past year, gold and ten-year real yields have struggled to follow their usual inverse paths, and the dislocation accelerated further during Q1 when gold increasingly managed to ignore rising yields. At current levels gold is theoretically overvalued by around 300 dollars, and highlights a major shift in focus. The net reduction in bullion-backed ETFs that was seen throughout last year came to halt in late December, and since then total holdings have risen by 282 tons to 3325 tons. During the same time leveraged funds, primarily operating in the futures market, given the ability to trade lots valued at $195,000 for a margin of less than $8,000, have been much more dependent on the directional movements in the market. Following the March 8 failed attempt to reach a fresh record high they spent the following weeks scaling back exposure. An exercise that was not completed until the week of April 12 when they returned as net buyers, thereby aligning them with the mentioned ongoing demand for ETFs. Source: Saxo Group While inflation was something we talked about last year, the actual impact of sharply higher prices of everything is now increasingly being felt across the world. In response to this investors are increasingly waking up to the fact that the good years which delivered strong equity returns and stable yields are over. Instead the need to become more defensive has set in and these changes together with the risk of what Russia, a pariah nation to much of the world now, may do next if the war fails to yield the desired result. Instead of real yields, we have increasingly seen gold take some its directional input from crude oil, a development that makes perfect sense. The ebb and flow of the oil price impacts inflation through refined products such as diesel and gasoline while its strength or weakness also tell us something about the level of geopolitical risks in the system. In our recently published Quarterly Outlook we highlight the reasons why we see gold move higher and reach a fresh record high later this year. Source: Saxo Group
FXStreet’s Dhwani Mehta Opinion About Gold Movements

Gold Price Forecast: XAUUSD recovers from intra-day dip under $1930, but still pressured as yields/USD rise

FXStreet News FXStreet News 22.04.2022 16:47
Gold Prices have recovered back into the $1940s from earlier sub-$1930 lows after finding support at the 50DMA. But XAU/USD still trades substantially lower on the day and versus earlier weekly highs at $2000. The backdrop of rising US yields and a strong US dollar have been unfavorable for gold. Spot gold (XAU/USD) prices have seen a decent intra-day bounce from earlier sub-$1930 lows back to the mid-$1940s, with the 50-Day Moving Average at $1936 offering strong support. But the precious metal continues to trade with losses of about 0.4% on the day, having ended Thursday trade to the north of the $1950 level. Gold continues to struggle to gain traction against a backdrop of still rising US yields (on Friday mostly at the front-end of the curve) and a strong US dollar, with markets pricing in a more aggressive Fed tightening cycle. In the last few days, in wake of Fed Chair Jerome Powell and other Fed policymakers opening the door to 50 bps rate hikes (some even hinted at larger moves), big US banks have been falling over themselves to hawkishly revise their Fed policy change calls. Nomura was in the headlines with a prediction that after a 50 bps rate hike in May the Fed would then follow up with a further two 75 bps rate hikes in June and July. This isn't a good backdrop for gold. Rising interest rates mean the "opportunity cost" of holding non-yielding assets like gold has gone up and this tends to dent demand. The Fed now goes into blackout ahead of the 3-4 May meeting, meaning precious metals might get some respite in the days ahead from hawkish Fed-related bearish flows. The big question investors will face next week will be whether 1) gold can make headway back towards this week's $2000 highs amid demand for inflation/stagflation protection as growth fears rise and geopolitical tensions remain elevated, or 2) will gold continue dropping towards recent lows in the $1900 area amid an unfavourable macro backdrop. Gold Price technical analysis On an hourly scale, XAU/USD has formed a double bottom chart pattern, which signifies a bullish reversal amid the absence of high-volume sellers while re-testing the critical bottom. The gold prices have witnessed a sheer upside after the successful retest of Wednesday’s low at $1,939.31. The Relative Strength Index (RSI) (14) has defended itself from slipping into the bearish range of 20.00-40.00. Also, the precious metal has established above 20-period Exponential Moving Average (EMA), which signals more gains ahead. Gold Price hourly chart On the other hand, the W-formation could be problematic and a restest of the neckline could be in order: Additionally, the daily wick and bearish close is a bearish formation which could give rise to a mitigation of the early April rally's imbalance of price for a test into a deeper demand area: On the other hand, the M-formation is also compelling on the daily chart and should bulls commute at hourly support, then the neckline would be expected to pull the price in.
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Can (XAUUSD) Gold Price Plunge To $1800!? Silver Price (XAGUSD) To Decrease As Well?

Jason Sen Jason Sen 25.04.2022 09:59
Gold first support at 1927/24 but longs need stops below 1920. A break lower targets 1915/12. Below 1910 look for 1900, perhaps as far as 1890. Strong resistance at 1940/45. Shorts need stops above 1950. Read next (By Jason Sen): British Pound To Canadian Dollar (GBP/CAD) Bounces To Ease Severely Oversold Conditions As Predicted, EUR/USD again holds important 5 year trend line support at 1.0850/20 | FXMAG.COM Silver best support for this week at 2390/80. Longs need stops below 2365. A break lower is a medium term sell signal. Minor resistance at 24.50/60. Strong resistance at 2485/95. Shorts need stops above 2505. WTI Crude JUNE first support at 102.00/101.50. Longs need stops below 101.00 (a low for the day here again on Friday). A break lower however targets 9900/9850 & 9750/9700. We could fall as far as very strong support at 94.50/9400. Longs need stops below 9350. Read next: Euro To US Dollar (EUR To USD): That's An Amazing USD Performance, Will USDCAD (Canadian Dollar) Stay Close? USDJPY (Japanese Yen) Beats Records! | FXMAG.COM Holding support at 102.00/101.50 allows a recovery to minor resistance at 104.50/105.00. Above 105.50 however look for 106, perhaps as far as 107.30/70. Shorts need stops above 108.50. Please email me if you need this report updated or Whatsapp: +66971910019 – To subscribe to this report please visit daytradeideas.co.uk or email jason@daytradeideas.co.uk
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US Yields Have Declined! Gold Price (XAUUSD) Is Back In The Game! Gold Trades Near $1900, COVID In China Leave Investors Unsure

Conotoxia Comments Conotoxia Comments 26.04.2022 10:25
The price of gold appears to be back above $1,900 per ounce on Tuesday, after a 3-day decline. The rise seems to have taken place with a slight weakening of the US dollar and a drop in US Treasury bond yields, which may have made bullion more attractive. Investors may be monitoring the deteriorating Covid virus situation in China after authorities in Beijing expanded testing to a larger part of the city The U.S. dollar appears to have retreated today from a two-year high reached during the previous session, while the 10-year bond yield may have fallen from a three-year high, retreating to around 2.8 percent. Given the growing uncertainty about the outlook for global economic growth, the market may be gauging the Federal Reserve's willingness to tighten monetary policy quickly. Additionally, investors may be monitoring the deteriorating Covid virus situation in China after authorities in Beijing expanded testing to a larger part of the city, raising fears of a shutdown of the capital. In addition, Russia told the world not to underestimate the significant risk of nuclear war, which it says it wants to reduce, and warned that conventional Western weapons are a target in Ukraine. Gold can be seen as a store of value during economic and political crises. Read next: Conotoxia - Who's Gonna Stop Dollar (USD)!? EUR/USD Plunging Below 1.00? What A Surprise! Crude Oil Price Goes Down!| FXMAG.COM European buyers have refused to buy millions of barrels of Urals crude from Rosneft PJSC Meanwhile, in the oil market, WTI crude futures appear to have risen to around $99.5 a barrel on Tuesday, after a two-day decline that took prices below $100. However, the supply situation appears to remain tight. There is still a risk that the EU could join the U.S. and U.K. in banning Russian oil imports as the war in Ukraine continues. European buyers have refused to buy millions of barrels of Urals crude from Rosneft PJSC, while Asian refiners have given up on Russian oil because of sanctions imposed on the company that carries the cargoes. As a result, the world on the one hand may be reducing oil demand by the prospect of weaker economic growth and lower demand from China due to the epidemic. On the other hand, there are still chances of reduced oil supply in Europe due to war and sanctions, which may put upward pressure on production. Thus, the price of WTI crude oil, due to the opposing factors, may remain in a consolidation of $92-114. Read next: Conotoxia - (USD) Dollar Index - Fed Floors It! Hawkish Rhetoric And Interest Rate Hike? British Pound In Crisis? GBP/USD Affected By Weak Retail Sales Data!| FXMAG.COM   Daniel Kostecki, Director of the Polish branch of Conotoxia Ltd. (Forex service) Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
XAUUSD: What Do We Learn From Ichimoku Cloud Indicator Analysis Of Gold Price?

KOG Report: The week ahead for GOLD!! - 01.05.2022

Knights of Gold Knights of Gold 01.05.2022 20:31
https://www.tradingview.com/chart/XAUUSD/0iiydXgu-XAUUSD-KOG-REPORT/ In last week’s KOG report we again suggested we weren’t convinced by the bullish sentiment in Gold and we would be targeting lower levels on Gold. We stated that as long as the price stays below that 1960-65 level our target will be the 1890-95 price point. We updated this during the week with our plans together with the levels and targets for the short destination which you can see has now completed. We completed 17 targets across numerous pairs in Camelot giving us a pip capture which again was through the roof. That’s along side all the free trade ideas we had posted on TradingView. So, what can we expect in the week ahead? We will be looking for some bullish momentum in Gold in the week ahead with the immediate level we want to target being the 1917-20 region and above that 1925-30. What we do want to see however is a swoop on some voids below which could give us a double bottom on the 4H timeframe. The concerning thing for us is we still have lower targets that are active on Gold, so we will trade the new week and first few days of the month with caution. There is a chance they can swing low into the void, take liquidity from there and then push the price up before facing resistance and then dropping it again! For that reason we will have the weeks bias a bullish but overall bias will remain bearish for now! We want to see how the 1925-30 price point takes in the price if it gets there. We have shown the levels we are looking at and together with the support and resistance levels. We will break this down during the course of the week and take it step by step making sure we remain in the right direction on Gold, as we have been. Again, that 1960 price level is very possible and again, if we get that far up, we will be looking for the price to remain below this level to maintain our bearish view. Theirs is every possibility this can begin to settle in between this range of 1875 and 1930 so look out for the range, plot the levels and use the range trading strategy we have shared on TradingView previously. We will link it to this post for you! So as always, we will trade this with two scenarios in mind. Please read this carefully as the we can do so much to create the roadmap on the chart without cluttering it with too many lines and arrows. Scenario 1: We open and price find support around where we have closed or just below here. We feel this would be a good opportunity to test the long trade into the first level of 1915-17 and breaking that the next level of 1930. 1930-35 is where we want to again assess the price action and the structure of the chart before deciding whether to hold our trades or to then release all the longs and test the short trade back down to test the patterns neckline. Please note, that breaking above the 1935 price region could entail the price going further into the higher resistance level of 1960-65 where again we will look for the short. From 1935-1960 we will switch to our level to level trading strategy holding partial longs from the lows, if we get the entry! Scenario 2: Price pushes up from the open. We will not go long, rather wait for a retest of support to go long or if it doesn’t hit the 1915-17 level, or wait for the 1915-17 level to either resist the price or turn into support. Once this is confirmed we will be happy to go long to target the higher levels for support levels until we reach 1930-35 and above that 1960. At 1960 we feel the opportunity again will arise to short the market down into the lower support regions starting at 1910. We will of course update during the week. In summary: We have a lower level of 1858 as a target and higher level of 1960 and above that 1995 again. We either want to lows to be complete to give us the entries for the longs into the higher levels, or, we want the high to be complete so we can short it again down into our lower targets. New week, new month, we have a rule in Camelot where we take it easy during the first few and last few days of the month. Let the market settle and find its feet, the trades will come, it just requires patience, and patience pays!! Hope this helps in preparation for the week ahead, we will update you as we go along as we usually do. Please do support us by hitting the like button, leaving a comment and giving us a follow. We’ve been doing this for a long time now providing traders with in-depth free analysis on Gold, so your likes and comments are very much appreciated. As always, trade safe. KOG
Gold Stocks Have Performed Very Well Under Pressure

KOG Report FOMC: What to look out for!

Knights of Gold Knights of Gold 04.05.2022 19:04
https://www.tradingview.com/chart/XAUUSD/vnkW7Vje-XAUUSD-KOG-REPORT-FOMC/ This is our view for FOMC today, please do your own research and analysis to make an informed decision on the markets. It is not recommended you try to trade the event if you have less than 6 months trading experience and have a trusted risk strategy in place. The markets are extremely volatile and can cause aggressive swings in price. We’re going to keep this one brief today as we’re not really interested in trading this on the intraday levels. Instead, we want to wait for key levels to break and act as support or resistance, or we want key levels to get hit where we can test the entries for the longer trades. As you can see we’ve hit the lower level we wanted on the KOG Report which was published on Sunday leaving the higher levels still open. We can still see some movement up to come, however, how low can they swing it if they want to before we see the rise at least to target the 1900 level. So here are the two scenarios we will be looking at for FOMC and potentially during the course of tomorrow, unless anything changes. We’re going to use the 1HR chart with the 4HR Key levels, so it makes it easier to follow the price. Scenario 1: They push the price up from here, the first level we want to look for a reaction in price is the 1890-95 price point. This is where there could be an opportunity to short the market down into the 1850-40 price region. We will then be looking around 1830-25 for a grab and potentially this could represent an opportunity to then trade this back up to where the price broke out from and maybe higher. Breaking the 1890-95 level then we're looking at 1914 and above that 1930-35. Scenario 2: They push the price down, its likely they will swoop just below the 1850-45 price level and then attempt to recover the price back up to target the 1900 level and potentially beyond. Breaking the 1840 level will likely mean they will hit our 1835 target where again we will likely see a reaction in price to potentially take the long trade. In Summary: We have the levels of 1830-25 below and we have the levels of 1925-35 above. If they really want to move the price they can move it to either of these extreme levels. The best option on funds like this is to sit out, wait for the to target the levels, let the price show signs of exhaustion and then take your entry. Trying to catch this up and down in high volume high volatility is potluck, you’ll either get it right or you’ll get it wrong. Hope this helps in preparation for FOMC. Please do support us by hitting the like button, leaving a comment and giving us a follow. We’ve been doing this for a long time now providing traders with in-depth free analysis on Gold, so your likes and comments are very much appreciated.
Analysis of Gold for July 27,.2022 - Sideways regime, watch for the breakout

Is The US Dollar The Global Safe-Haven?

Chris Vermeulen Chris Vermeulen 04.05.2022 16:33
Global investors continue to pile into the US Dollar making it the primary safe-haven trade.  This may eventually trigger a broad and deep selloff in U.S. stocks. As the USD continues to strengthen, corporate profits for US multinationals will begin to disappear. The following chart by Finviz shows the percentage the USD has appreciated against all the major global currencies during the past month: In the current market environment, it’s imperative to assess your trading plan, portfolio holdings, and cash reserves. Experienced traders know what their downside risk is and adapt as necessary. Successful traders manage risk by utilizing stop-loss orders, rebalancing existing positions, reducing portfolio holdings, liquidating investments, and moving into cash. USDJPY UP +13.29% VS S&P 500 -12.76% The S&P 500 peaked on January 5, 2022, and after 3-months put in a lower top on March 29, 2022.  In comparison, the US Dollar USD has gained steadily throughout 2022 as noted in the FX currency pairs USDJPY, USDCHF, and USDCAD. Interestingly we can see that as the USD is picking up steam to the upside simultaneously stocks are selling off. It appears that the money that is coming out of the equity markets is going into cash. But not just any cash but specifically into US dollars. The global appetite for the US dollar and its subsequent rise can kill the stock market as US corporate profits dry up and everything the US consumer purchases in US dollars rise to levels that are no longer sustainable. UNITED STATES DOLLAR • GLOBAL COMPARISON • OANDA • DAILY GBPUSD LOST -36.30% 2007-08 During the Financial Crisis of 2007-2008, the British Pound vs the US Dollar GBPUSD lost -36.30% in 14-months. Translation: the USD gained +36.30 against the GBP! The current drop in the GBPUSD has been roughly -13.00% over the last 8-months. Potentially the GBPUSD could move down another -20% over the next 6-months or longer if the downturn lasts for an extended period. Translation: the USD has the potential to gain an additional +20% against the GBP! GBPUSD • BRITISH POUND VS US DOLLAR • FXCM • MONTHLY AUDUSD LOST -39.20% 2007-08 During the Financial Crisis of 2007-2008, the Australian Dollar vs the US Dollar AUDUSD lost -39.20% in just 4-months. Translation: the USD gained +39.20 against the AUD! The current drop in the AUDUSD has been roughly -8.42% over the last 1-month. Potentially the AUDUSD could move down another -30% over the next 3-months or longer if the downturn lasts for an extended period. Translation: the USD has the potential to gain an additional +30% against the AUD! AUDUSD • AUSTRALIAN DOLLAR VS US DOLLAR • FXCM • MONTHLY DISCOVER HOW TO MANAGE DRAWDOWNS Drawdowns are critical as the larger the loss the more difficult it is to make up. A loss of 10% requires an 11% gain to recover, however, a 50% loss requires a 100% gain to recover, and a 60% loss requires an even more daunting 150% gain to simply return to break even. Recovery time also varies significantly depending upon the magnitude of the drawdown. A 10% drawdown can typically be recovered in weeks or a few months while a 50% drawdown may take several years to recover. Depending on a trader's age they may not have the time to wait on the recovery nor the patience. Therefore, successful traders know it’s critical to keep their drawdowns within reason as most of them learned this principle the hard way! Sign up for my free trading newsletter so you don’t miss the next opportunity! Especially in times like these, traders must understand where opportunities are and how to turn this knowledge into profits. As technical traders, we follow price only, and when a new trend has been confirmed, we change our positions accordingly. We provide our ETF trades to subscribers. Recently, we entered new trades, all of which hit their first profit target levels and then eventually triggered their break-even profit stop-loss orders on their remaining position. After booking our profits we are now safely in cash preparing for our next trades. As our models generate new information about trends or a change in trends, we will communicate these signals expeditiously to our subscribers and to those on our trading newsletter email list. Our core objective is to protect our valuable capital while identifying suitable risk vs reward opportunities for profits in new and emerging trends. WHAT STRATEGIES CAN HELP YOU NAVIGATE The CURRENT MARKET TRENDS? Learn how we use specific tools to help us understand price cycles, set-ups, and price target levels in various sectors to identify strategic entry and exit points for trades. Over the next 12 to 24+ months, we expect very large price swings in the US stock market and other asset classes across the globe. We believe the markets have begun to transition away from the continued central bank support rally phase and have started a revaluation phase as global traders attempt to identify the next big trends. Precious Metals will likely start to act as a proper hedge as caution and concern begin to drive traders/investors into Metals and other safe-havens. Historically, bonds have served as one of these safe-havens, but that is not proving to be the case this time around. So if bonds are off the table, what bond alternatives are there and how can they be deployed in a bond replacement strategy? We invite you to join our group of active traders and investors to learn and profit from our three ETF Technical Trading Strategies. We can help you protect and grow your wealth in any type of market condition by clicking on the following link: www.TheTechnicalTraders.com
Oil jumps on EU ban, gold rises after Fed

Oil jumps on EU ban, gold rises after Fed

Kenny Fisher Kenny Fisher 05.05.2022 15:30
Oil prices leap on EU oil ban Oil prices leapt higher overnight as markets digested the impact of the proposed EU ban on Russian oil imports. Additionally, the OPEC+ JTC is indicating that there will be no change in the monthly schedule of production increases, with some members in fact noting that China’s demand has slumped. Brent crude rose by 4.05% to USD 111.10 overnight, with WTI climbing by 3.90% to USD 107.55 a barrel. ​ In Asia, Brent and WTI have had a muted session, adding just 0.50% each to USD 110.60 and USD 108.10 respectively. In the bigger picture, Brent crude is still in a broader USD 100.00 to USD 120.00 range, and WTI in a USD 95.00 to USD 115.00 range. Only a weekly close above or below those levels signals a new directional move. Overall, we remain in a situation where the Ukraine/Russia conflict and the inability of OPEC+ to even meet their pre-agreed quotas is keeping spot prices tight, while China’s covid-zero-induced slowdown is acting to cap price increases. With the sanction situation on Russia escalating, and with Russian retaliation not out of the question, I believe the risks of the Ukraine conflict becoming more fully priced into energy markets are increasing.   Gold rallies on a weaker US dollar Gold rose sharply overnight as the US dollar plummeted post-FOMC after the Fed hiked by 0.50% as expected, and eased concerns around future 0.75% hikes. Gold rose 0.70% to USD 1881.50 an ounce, before continuing its rally in Asia, gaining an impressive 1.10% to USD 1901.65 today. The move in Asia is unusual, even more so because other asset classes in Asia are not showing a strong continuation of the US dollar sell-off seen overnight, although Asian currencies have rallied modestly in trading today. I suspect the buying is coming out of China as that market had returned from holidays today. From a technical perspective, gold reclaimed the 100-day moving average at USD 1881.00 overnight, which becomes intraday support, followed by USD 1850.00 and USD 1835.00 an ounce. Gold faces resistance at USD 1920.00 and USD 1960.00 an ounce. It is too early to say that gold prices have turned a corner. If the US dollar correction lower continues, then gold can certainly continue rallying. But if the US dollar sell-off runs out of steam, then gold will struggle to maintain gains above USD 1900.00 an ounce.   This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Gold prices are embracing the FOMC decision. Oil surges as EU nears Russian ban, gold gets groove back

Gold prices are embracing the FOMC decision. Oil surges as EU nears Russian ban, gold gets groove back

Ed Moya Ed Moya 05.05.2022 16:08
Oil soars on EU oil sanctions, Fed Crude prices surged after EU outlined plans on phasing Russian oil and following the FOMC decision that signaled Wall Street has passed peak hawkishness. The oil market will remain tight going forward and now that a peak in the dollar is in place crude prices should have extra support here.  The latest EIA crude oil inventory report posted a surprise build but energy traders fixated over the strategic petroleum reserves falling to the lowest levels in over two decades. US production remained steady at 11.9 million barrels a day, which suggests producers are not rushing to increase output as rig counts have steadily been rising.  The focus will shift to OPEC+ and that is likely to be an easy meeting that keeps the gradual increase output strategy in place.   Gold Gold prices are embracing the FOMC decision that suggests Wall Street has passed peak hawkishness.  Fed Chair Powell removed the risk of 75 basis point rate increase at the June meeting and suggested that hikes could come down to 25 basis points once inflation comes down.  Gold got its groove back as a firm top has been put in for the dollar. Even if inflation continues to run hot, investors will take comfort from Fed Chair Powell’s words and that should be good news for gold investors.  Gold may find tentative resistance at the USD 1900 level, but momentum traders might pounce if price action breaks through over the next day.  This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. TEST
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Oil trades sideways, gold pares gains

Jeffrey Halley Jeffrey Halley 06.05.2022 10:13
After initially leaping higher after the proposed EU ban on Russian oil was released, oil markets have spent the past two sessions consolidating those gains. Overnight, oil traded in a wide and choppy range, but ultimately, Brent crude finished just 0.80% higher at USD 110.95, and WTI rose 0.95% to USD 108.55 a barrel. In Asia, both contracts are almost unchanged in pre-weekend trading.   The news that the US will launch tenders to restock 60 million barrels of oil back into its SPR had no impact on prices overnight. Most likely as the tender exercise won’t start until autumn, an eon in these markets. Similarly, the OPEC+ announcement that it would proceed with its pre-planned 430,000 bpd production increase had no impact either. That is because, with OPEC+ compliance at over 160%, there is zero chance of certain members filling that quota anywhere as production challenges impact Nigeria and other African members.   That leaves oil at the mercy of the Ukraine/Russia conflict and the EU oil ban supporting the downside, while China slowdown fears, with some OPEC members noting much-reduced demand from the mainland, acting as a cap on upside price moves. I still believe markets are under-pricing Ukraine/Russia risks, but that story will have to wait for another day it seems.   Brent crude has formed a triple top at USD 114.75 a barrel, which will be a formidable barrier in the near term. Support lies at USD 103.50 a barrel and I am sticking to my broader USD 100.00 to USD 120.00 a barrel wider range for the months ahead for now. WTI has resistance at USD 111.50 with support at USD 100.00 a barrel. Once again, I remain comfortable with a USD 95.00 to USD 115.00 a barrel outlook in the medium term.   Gold is actually holding up quite well Like Grace Jones, gold is a slave to the rhythm, in this case, the rhythm of the US dollar. Gold staged quite an impressive rally in early trading yesterday, but as the US dollar soared, it gave back all those gains to finish 0.23% lower at USD 1877.00 an ounce, where it remains in moribund Asian trading.   Still, given the moves seen in other asset classes, gold is holding up reasonably well. It is steady despite US 10-year yields moving above 3.0% once again, and it is definitely outperforming bitcoin right now. That could be coincident with the return of China from holidays, or that there is more than a little risk-hedging based buying quietly going through the market.   Gold looks set to vacillate around its 100-day moving average, today at USD 1881.65, in a wide but real range of USD 1850.00 to USD 1920.00 an ounce, for the time being. Only failure of the break-out triangle apex at USD 1835.00 swings gold back into bearish territory. That said, gold needs to close above resistance at USD 1920.00, and preferably USD 1960.00 an ounce to get the gold bugs excited again. I see more whipsaw trading ranges in the days ahead.   This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
|XAUUSD| Gold Price To Plunge Below $1800!? KOG Report: The week ahead for GOLD!! - 08/05/22

|XAUUSD| Gold Price To Plunge Below $1800!? KOG Report: The week ahead for GOLD!! - 08/05/22

Knights of Gold Knights of Gold 08.05.2022 21:35
In last weeks KOG Report we were looking for some bullish momentum for Gold which we didn’t get until the end of the week. We wanted to see the price swoop liquidity from below in the immediate support regions and then begin an incline to target the higher levels we had identified before then dropping into the lower KOG targets. Instead, we can see the price continued the decline until the later part of the week completing our lower target and then beginning a small incline in price. Did it go to plan? No! We hit the target but not how we wanted to. https://www.tradingview.com/chart/XAUUSD/u9lYCBa2-XAUUSD-KOG-REPORT/ So what can we expect in the week ahead? Not much has changed from our view from last week, we’re still looking for some bullish price action to target that higher resistance level where we want to see a reaction before then taking the swoop of the low. There is a huge possibility they can open by undercutting the low from last week, so this is a key area we want to keep an eye on. The region stands around the 1850 psychological level where there is likely to be a reaction in price action. If we open and target that low without breaking it this time then there is a chance, they will take this up before again trying to bring it down again. So, we will use the same NFP chart we used last week and look for the same areas again this week for our entries and exits. As always, we will trade this with two scenarios in mind. Scenario 1: They open and push the price down first, targeting that 1850-55 price region. Based on support at this price point we feel this would represent a good opportunity to go long on the market to target that 1915, 1920 and above that 1927-30 price point. As the chart illustrates, this is where we will be waiting again to short the market back down into the 1885, 1850 and below that 1830 price points. Scenario 2: This would be ideal for us. They open and push the price to the upside targeting that 1915 level and above that the 1925-30 price region. This is where if we have take any long trades we will exit and then look for resistance to target the lower levels of 1850 and below that 1830. Our targets for the week are: Lower: 1845 1833 1821 Higher: 1895 1917 1933 1940 In summary: We are level to level at the moment following Excalibur where ever it is taking us. We’re waiting for the higher of lower extreme levels to take our longer term positions for either the long into the 1930 price region from below, or, the short from the higher key level above. The ideal scenario as we said is for the price to push up during the early part of the week and then take the decline we are waiting for. Where are we targeting to the downside? Let’s just say we have a target around the 1790 price point. Whether it gets there or not is to be seen, but this is what we’re looking at in Camelot. As always, we’ll update this during the course of the week with our morning reviews and the changes in our plans. Hope this helps in preparation for the week ahead, we will update you as we go along as we usually do. Please do support us by hitting the like button, leaving a comment and giving us a follow. We’ve been doing this for a long time now providing traders with in-depth free analysis on Gold, so your likes and comments are very much appreciated. As always, trade safe. KOG
OPEC+ Meeting: Saudi Arabia Implements Deeper Voluntary Cuts to Boost Oil Prices

Crude Oil Extends Losses, (XAUUSD) Gold Price Under Pressure | Oanda

Kenny Fisher Kenny Fisher 10.05.2022 21:32
Oil slips closer to USD 100 Oil prices are slightly lower again today and not far from double-digit territory as traders grapple with the prospect of recessions and a tightening of Chinese restrictions. The unwillingness and, more accurately, inability of OPEC+ to turn the taps on more is keeping oil prices very elevated but at a little over USD 100, it’s more comfortable than was looking probable at times over the last couple of months. The EU struggling to find a coordinated response on Russian oil is possibly helping to alleviate some near-term pressures, although progress with Hungary is reportedly being made. This also comes as some OPEC members warn of dwindling energy capacity as a result of underinvestment, perhaps a sign that we should get used to these higher prices. Gold struggling as central banks raise their game Uncertainty and risk aversion in the markets is doing little to support gold at the moment, with the dollar instead being favoured and the yellow metal under heavy pressure. Since coming within a whisker of USD 2,000 a few weeks ago, gold has fallen more than 7% and looks vulnerable to further losses. Inflation is still extremely high and economic uncertainty is weighing heavily on risk assets. But central banks are being very aggressive to try and contain price pressures which appears to be getting in the way of gold retaining the gains it made earlier in the year when they were still in denial. For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/ This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
"Global Steel Output Rises as Chinese Production Surges, Copper Market Remains in Deficit

Where (USD) US Dollar Is Going To Head To In The Next Few Days? May S&P 500 And Gold Become Volatile Shortly? | Daily Reprieve or More | Monica Kingsley

Monica Kingsley Monica Kingsley 11.05.2022 14:17
S&P 500 modest risk-on turn talked yesterday, is underway – with adequate support from bonds. That means the dollar is going to get under daily selling pressure, with positive consequences for assets spanning commonidities, precious metals and sure supporting tech as well (looking at TLT to cast a decisive vote for Nasdaq). Unfolding just fine, but what about the CPI effect? Likely to temper the oh so fast inflation theme, at least temporarily – and that would take pressure off the Fed‘s hand being twisted by the markets. Note though how both the 2-year and 10-year Treasury paused over the last days. Together with the arriving as anticipated negative quarterly GDP print, the temporary slowdown in pace of inflation would get an ally in retreating (especially long-term) Treasury yields reflecting the darkening real economy prospects. Time for a relief S&P 500 rally with both tech and value participation, if only HYG can perform somewhat better. Time for a relief S&P 500 rally with both tech and value participation, if only HYG can perform somewhat better. The bulls have a chance, and can run with it as best as they can. Cryptos thus far are modestly leaning in the „local bottom is in“ direction (in spite of the tectonic Tether developments), so the odds are for price gains across the board (at the expense of the dollar) during today – as long as markets interpret the upcoming CPI reading as slowing down / slowly peaking. Yes, since Jun 2020 when I started to talk early effects of inflation, the last week has been the first time when I raised the good likelihood of inflation making a local peak when May / Jun CPI readings come in, only to spring quickly back to life on the „economy is slowing, do something“ change in tune of demands made to the Fed. Read next: Stablecoins In Times Of Crypto Crash. What is Terra (UST)? A Deep Look Into Terra Altcoin. Terra - Leading Decentralised And Open-Source Public Blockchain Protocol | FXMAG.COM At these trying times for real asset bulls, let‘s take the proper precious metals perspective, enjoy the rich caption: It‘s the dollar, yields and miners coming back to life that would mark the coming upleg arrival Plenty of upside risk to become evident in 2H 2022, with my Monday‘s article covering the game plan for turnaround across the many assets on my daily watch. It‘s the dollar, yields and miners coming back to life that would mark the coming upleg arrival. Lean times until then. Read next: (EUR/USD) German Inflation Meets Forecasts, Pound Sterling Continues To Weaken (EUR/GBP, GBP/USD), (EUR/JPY) Japanese Yen Strengthens As Investors Seek Safe-Haven Assets| FXMAG.COM There, you can subscribe to the free Monica‘s Insider Club Thank you for having read today‘s free analysis, which is available in full at my homesite. There, you can subscribe to the free Monica‘s Insider Club, which features real-time trade calls and intraday updates for all the five publications: Stock Trading Signals, Gold Trading Signals, Oil Trading Signals, Copper Trading Signals and Bitcoin Trading Signals.
OPEC+ Are Expected To Keeping Oil Production Unchanged, AUD/USD Trades At Its Highest Levels

Crude Oil (USOIL) Trades Quite Lower, Australian Dollar Has Weakened Against US Dollar (AUDUSD), Gold Price Has Slid | Orbex

Jing Ren Jing Ren 12.05.2022 09:21
AUDUSD saw brief recovery The Australian dollar struggles as Beijing vows to support its Covid-hit economy. A drop below the psychological level of 0.7000 near this year’s low may have put the Aussie on a bearish trajectory in the medium-term. On the hourly chart, the RSI’s double bottom in the oversold area may cause a limited rebound. Selling interest could be expected at 0.7100 at the origin of the latest sell-off. A drop below the intermediate support at 0.6920 would extend losses towards June 2020’s lows around 0.6820. Read next: Tech Stocks Plunging!? Trade Desk Earnings Announcement Pushes Tech Giant Stock Down, Russian Ruble Strengthening and Ford Motor Co.  XAUUSD tests demand area Bullion steadied after the US CPI receded in April. The price action has found some support at the base of the February bullish breakout. A bullish RSI divergence indicates a slowdown in the downward momentum, a prerequisite for a reversal. 1868 is a key resistance and a breakout would confirm the demand zone and prompt sellers to cover their bets. Then 1910 is the last hurdle before sentiment would turn around. On the downside, a break below 1831 would send the precious metal to the psychological level of 1800. Read next: (BTC) Bitcoin’s Price Tanks Along With Equities. U.S. Stock Market Awaits CPI Report, Poor Performance From The FTSE 100.  USOIL bounces higher WTI crude rallies as Russia retaliates by sanctioning European gas companies. A fall below the rising trendline near 106.00 has put the bulls on the defensive. The price has met bids at 98.50 and in conjunction with a bullish RSI divergence could attract more buying interest. Optimism may gain traction if buyers succeed in holding above this demand zone. A close above support-turned-resistance at 107.00 would put the bulls back in the game. Then a break above 111.00 could trigger an extended rally above 117.00.
EM Index Inclusions and Exclusions: India Thrives, Egypt Faces Challenges

Crude Oil Jumps, (XAUUSD) Gold Price Under Pressure | Oanda

Jeffrey Halley Jeffrey Halley 12.05.2022 16:36
Oil markets remain volatile Oil prices spiked overnight, led by a combination of Shanghai reopening, potential gas supply disruption through Ukraine, Russian sanctions on EU energy entities and a plunge in gasoline inventories in the US. Brent crude rose 5.90% to USD 107.50, and WTI leapt 6.60% higher to USD 105.50 a barrel. In Asia, the risk aversion selling sweeping other asset classes in Asia today has pushed oil prices slightly lower. Brent crude fell 1.20% to USD 106.25, and WTI fell 1.10% to USD 104.40 a barrel. The continuing squeeze on US gasoline, diesel and other distillates is another supportive factor With tensions seemingly ratcheting higher after Russia sanctioned ex-Gazprom JVs in Europe, along with reduced trans-Ukraine pipeline flows, there is limited downside for oil prices in the near term. The continuing squeeze on US gasoline, diesel and other distillates is another supportive factor. Read next: Altcoins: What Is Polkadot (DOT)? Cross-Chain Transfers Of Any Type Of Asset Or Data. A Deeper Look Into Polkadot Protocol | FXMAG.COM Brent crude has formed a nice trendline support going back to January 2022 at USD 101.50, while WTI has formed the same pattern at USD 98.50 a barrel. Resistance remains at USD 114.75 and USD 111.50 a barrel respectively. Failure of the respective USD 101.50 and USD 98.50 trendline supports is likely to provoke a much stronger test of USD 100.00 for Brent, and USD 95.00 for WTI this time around. Eastern European tensions mean this is not my base case, however. I am sticking to my broader calls for the past two months. Brent crude remaining between USD 100.00 to USD 120.00, and WTI between USD 95.00 and USD 115.00 a barrel. Gold survives another day Gold probed the downside overnight, testing support in the USD 1835.00 an ounce region, before rallying to a 0.75% gain, closing at USD 1852.00 an ounce as US yields fell and risk-hedging flows appeared. In Asia gold is relatively quiet compared to the volatility seen in other asset classes today. It has edged 0.17% lower to USD 1848.20 an ounce. Read next: Stablecoins In Times Of Crypto Crash. What is Terra (UST)? A Deep Look Into Terra Altcoin. Terra - Leading Decentralised And Open-Source Public Blockchain Protocol | FXMAG.COM Gold’s support critical near-term support remains the triangle apex at USD 1835.00, the breakout of which in early February, signalled the gold rally to USD 2060.00 an ounce. Its importance is confirmed by the nearby 200-day moving average (DMA), today at USD 1836.00 an ounce. A daily close under USD 1835.00 would be an ominous technical development. Gold has resistance at USD 1860.00 and USD 1884.00 an ounce, its 100-day moving average Failure of USD 1835.00 sets up a test of support at USD 1820.00 and then potentially USD 1780.00 an ounce. Failure of the latter suggests a deeper correction to USD 1700.00. Gold has resistance at USD 1860.00 and USD 1884.00 an ounce, its 100-day moving average. Read next: (BTC) Bitcoin’s Price Tanks Along With Equities. U.S. Stock Market Awaits CPI Report, Poor Performance From The FTSE 100. If the risk-aversion selloff sweeping other asset classes, notably cryptos, accelerates, gold does stand to benefit. Especially is haven buyers also pile into US bond markets, pushing the US yield curve lower. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Commodities: EU Members Manage To Agree On Price Caps For Russian Oil

The ugly crypto meltdown | MarketTalk: What’s up today? | Swissquote

Swissquote Bank Swissquote Bank 12.05.2022 11:03
US inflation data didn’t print a soft-enough figure to reverse the market selloff. Disappointing US inflation data sent another shock wave to the US stock markets sending all major US indices tumbling on Wednesday. The S&P500 lost more than 1.5%, while Nasdaq tumbled more than 3%. Bitcoin slumped below the 2021 lows on the back of a broad-based risk-off selloff, and panic due to TerraUSD losing its dollar peg earlier this week. The US dollar remained upbeat, and the dollar index returned above the 104 mark as the lower-than-expected cool down in the US inflation figure revived the Fed hawks. Gold rebounded from the 200-DMA, as the US 10-year yield eased despite yesterday’s higher-than-expected inflation print in the US The pound-dollar is testing the 1.22 this morning as the UK-European relationship is souring on the Northern Ireland headache. Gold rebounded from the 200-DMA, as the US 10-year yield eased despite yesterday’s higher-than-expected inflation print in the US, as US crude saw a decent dip buying interest below the $100 per barrel, even with the souring prospects of a healthy global economic recovery. Read next: Stablecoins In Times Of Crypto Crash. What is Terra (UST)? A Deep Look Into Terra Altcoin. Terra - Leading Decentralised And Open-Source Public Blockchain Protocol | FXMAG.COM   Watch the full episode to find out more! 0:00 Intro 0:28 Panic in cryptocurrencies as Terra loses dollar peg 2:22 Coinbase down on SEC filing about bankruptcy 4:08 Markets down on softer cool down in US inflation 6:37 Disney down, Rivian up after earnings announcement 7:25 USD up, pound down on souring EU-UK relations 8:23 Gold, oil rebound Read next: Altcoins: What Is Polkadot (DOT)? Cross-Chain Transfers Of Any Type Of Asset Or Data. A Deeper Look Into Polkadot Protocol | FXMAG.COM Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020.
Gold Stocks Have Performed Very Well Under Pressure

Gold Price Fails Essential Support, But The Bulls Still Have A Chance | FxPro

Alex Kuptsikevich Alex Kuptsikevich 13.05.2022 11:34
A sell-off in the equity market and a new wave of flight to the dollar on Thursday provided the perfect combination to knock out gold, which slipped to $1810 in thin trading on Friday morning, falling to its lowest level since early February. The current decline in the price makes us keep a close eye on further developments Right now, it’s up to gold to decide whether we see a double top formation or whether the bulls are gaining strength and liquidity ahead of a new multi-month rising momentum. The current decline in the price makes us keep a close eye on further developments. Read next: Stablecoins In Times Of Crypto Crash. What is Terra (UST)? A Deep Look Into Terra Altcoin. Terra - Leading Decentralised And Open-Source Public Blockchain Protocol | FXMAG.COM A consolidation of the week under $1830 would reinforce that signal Yesterday, gold took a sharp plunge under the 200 SMA, which is often a bearish factor for the instrument. A consolidation of the week under $1830 would reinforce that signal. Read next: Altcoins: What Is Polkadot (DOT)? Cross-Chain Transfers Of Any Type Of Asset Or Data. A Deeper Look Into Polkadot Protocol | FXMAG.COM A potential bull target, in this case, could be the $2500 area This would open the way for another roughly 25% drop into the $1350 area, the area of the 2015-2018 highs. If we see an uptick in buyers’ in the hours and days ahead, we could say that gold is in a correction. Potentially, a reversal to the upside from these levels could signal the start of a new wave of long-term growth, the first impulse of which was in 2018-2020, followed by a prolonged wide side trend. A potential bull target, in this case, could be the $2500 area.
What Could Boost ETH/USD!? Ethereum - The Merge Is Close! US: Shocking Unemployment Rate. In The Past Month S&P 500 And Nasdaq Increased

Soaring Food Prices!? Indian Crops Limited! Chinese GDP Disappoints, Power Of US Dollar Humiliates Gold Price Attempt To Gain | Saxo Bank

Saxo Bank Saxo Bank 16.05.2022 09:53
Summary:  The strong close on Wall Street Friday has not brightened the mood for the start of this week, as China reported far worse than expected GDP data that soured sentiment overnight. In other news, the global food supply concerns have ratcheted higher as the second largest wheat grower, India, has shut off exports of the food after a recent heat wave has damaged its crop. And in precious metals, the gold rally has fully broken down through all major supports as the strong USD tightens liquidity on virtually everything.   What is our trading focus? Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) - US equities rose into the close on Friday with the S&P 500 futures closing above the big 4,000 level, but they are already retreating this morning trading below 4,000 again with the news of a major wheat export ban from India due to a failed harvest putting more pressure on inflation and food costs. Our view has not changed much on equities. We remain defensive and believe investors should fade every short-term rally. Inflation will continue to put pressure on central banks to tighten financial conditions even more from current already tight levels. Commodities are still by far the most critical asset class to get exposure to in your asset allocation portfolio. Mainland China and Hong Kong stocks pared early gains on weak China data. Hang Seng Index (HSI.I), Hang Seng TECH (HSTECH.I) and CSI300 (000300.I) opened higher on news that China has cut the mortgage interest rate floor for first-home buyers and on optimism that a gradual lift of lockdowns in Shanghai will brighten the outlook.  But markets lost momentum on weak Chinese data releases (more below). Stoxx 50 (EU50.I) - European equities continued higher on Friday driven by a big sentiment shift in US equities, but Stoxx 50 futures are pushing lower today with the 3,600 level being the big support level to watch. Higher wheat prices (limit up today) could add more pressure on European households and negatively impact consumer confidence. Read next: Altcoins: What Is Polkadot (DOT)? Cross-Chain Transfers Of Any Type Of Asset Or Data. A Deeper Look Into Polkadot Protocol | FXMAG.COM USD pairs – the US dollar was pushed lower on Friday as the currency seems to be the great liquidity indicator of the moment and correlates with swings in risk sentiment. Interesting to note to start this week that it has jumped aggressively back higher versus riskier currencies, like AUD (especially due to weak Chinese economic data) but that the Japanese yen is outperforming (more below) as safe haven US treasuries caught a bid to start this week after a modest sell-off. For EURUSD, watching the 1.0341 low from 2017 for whether the path to parity and lower opens up from here. JPY pairs – at times in recent sessions, the JPY has served as an even higher beta currency to risk sentiment than the US dollar, likely because safe haven sovereign bonds have shown fitful signs of reverting to their old behavior as safe havens when the market is suffering a general deleveraging event. Watching whether the sell-off in JPY pairs since the outbreak of the war in Ukraine comes fully undone in coming sessions if yields at the long end of the US Treasury yield curve continue to push lower. GBPJPY has already broken back below its mid-February high, while EURJPY has teased a similar move (the 132.50-133.00). Gold (XAUUSD) trades back to unchanged on the year after suffering the biggest weekly fall in almost a year. The relentless rise of the dollar and the markets belief in the FOMC’s ability to bring down inflation has reduced gold’s appeal and it culminated last week with a drop to a three-month low at $1800. The recent weakness was led by silver (XAGUSD) partly being dragged down by weakness across industrial metals. The loss of momentum and price weakness during the past few weeks had by last Tuesday reduced the hedge fund long to a three-month low and down 58% from the March peak. Gold remains technically challenged with a break above its 200-day moving average at $1838 needed for that to change. Crude oil (OILUKJUL22 & OILUSJUN22) trades lower after dismal economic data out of China highlighted the price the country is paying for the government’s Covid Zero policy, with industrial output and consumer spending falling to the worst levels since the pandemic began in 2020. Brent crude oil remains rangebound within a $100 to $114 range with tight supply and sanctions against Russia being offset by global growth worries, led by China where crude oil processing last month slumped to the lowest level in two years. While US gasoline futures hit a record last week, Iran teasingly has been out saying it can double oil exports if the market needs it. US Treasuries (TLT, IEF) – US treasury yields rose Friday on the sudden improvement in risk sentiment but have faded back lower as Asia has stumbled out of the blocks to start this week on ugly Chinese economic data. Every quarter-percent marker on the 10-year yield benchmark graph has seen sticky price action – so 3.00% is support and the next resistance levels are 2.75% and then 2.50% (the benchmark trading this morning near 2.90%). What is going on? Weaker than expected Chinese economic data out overnight. China’s latest economic data spooked sentiment overnight, as April Industrial Production was recorded down –2.9% year-on-year vs. +0.5% expected, and April Retail Sales were down –11.1% YoY vs. -6.6% expected. The Surveyed Jobless Rate rose to 6.1% in April vs. 6.0% expected and 5.8% in March. Residential property sales were down 32.2% YoY. The impact of Covid lockdowns amidst China’s zero Covid policy is clear, although an easing of the Shanghai lockdowns is currently ongoing. Wheat (ZWN2) jumped by the exchange limit of $12.475 overnight after India over the weekend moved to restrict exports, thereby adding further risks to an already tight global market. Just a few weeks ago the market had expected exports this year would almost double from last year’s record 8 million tons, but a record-breaking heatwave during the past month has parched the crop during a crucial period, driving expectations for a slump in yields. Last week the USDA lowered its forecast for US wheat production by more than expected while war-hit Ukraine could see its production and exports slump to the lowest since 2012/13. In addition, European growers have already been struggling with warm and dry weather this early in the season, raising concerns about the output from the world’s top exporter. Adding to all this the dollar, which has risen by close to 10% this year, and the pain for key emerging market buyers of wheat is clear for all to see. Read next: Stablecoins In Times Of Crypto Crash. What is Terra (UST)? A Deep Look Into Terra Altcoin. Terra - Leading Decentralised And Open-Source Public Blockchain Protocol | FXMAG.COM Is Musk looking for an escape route? As we alluded to a couple of times last week on our daily Saxo Market Call podcast the relentless decline in technology stocks was putting pressure on Musk’s acquisition of Twitter as his premium looked more and more outrageous. Over the weekend, Elon Musk said the deal is on hold until verification of the size of bots on the social media platform, and Twitter followed up saying that Musk violated his NDA revealing the bot sample size. In any case, the deal looks fragile at this point. Downbeat US consumer sentiment. The preliminary US May University of Michigan sentiment survey showed the Current Conditions reading drop to a new cycle low of 63.6, a bad miss relative to the 69.6 expected. The reading was only worse for three months during the financial crisis of 2008-09. Expectations fared poorly as well, with a reading of 56.3 vs. 61.5 expected. The longer term inflation expectations component was stable at 3.0%. German Social Democrats suffer historic defeat in regional election in North Rhine-Westphalia, the most populous German state. The SPD polled at 27.1% according to exit polls, down over 4% from 2017, while the CDU won almost 36%, up about 3%, and the Greens advanced from 6 to 18%. What are we watching next? Status of crypto market as a sign of weak liquidity conditions: The cryptocurrency market survived last week’s volatility event after “stable” coin TerraUSD was blown up and the largest stable coin Tether suffered its worst challenge with parity since late 2020. Bitcoin broke down well through 30k, but the subsequent rally has failed to carry the price action away from that level, and the crypto space shows a near one-to-one correlation with US equities, which suggests that crypto assets offer no diversification. Stable coins stability and renewed break-down risk remain concerns until that asset class shows a life of its own. Official NATO application from Sweden and Finland. The is a major political event as it ends 200 years of Swedish neutrality and Russia has already reacted by cutting electricity to Finland (around 10% of the country’s consumption but can easily be filled by Sweden and the Baltics) and generally threated NATO with consequences. It seems all NATO countries are favouring to include Sweden and Finland the defense alliance except for Turkey with Erdogan commenting over the weekend that the two countries are housing Kurdish terror organisation. Read next: (TRX) TRON USD Decentralised Blockchain Platform That Focuses On Entertainment And Content Sharing. Altcoins: A Deep Look Into The TRON Network | FXMAG.COM Earnings Watch. The worst earnings season since the bottom during the early phase of the pandemic is coming to an end. Data confirms that revenue growth is slowing down and earnings lower due to margin pressure from commodities. This week will be dominated by large Chinese earnings from Meituan, JD.com, Tencent, Trip.com, Xiaomi, and DiDi Global. Monday: Meituan, Ryanair, Recruit Holdings, Take-Two Interactive Tuesday: Engie, Vodafone, Nibe Industrier, Sonova, Walmart, Home Depot, JD.com, Sea Ltd Wednesday: Tencent, Experian, Burberry, Singapore Airlines, Cisco, Lowe’s, Target, Analog Devices, TJX, Synopsys, Copart, Trip.com Thursday: Xiaomi, Generali, National Grid, Applied Materials, Palo Alto Networks, Ross Stores, DiDi Global Economic calendar highlights for today (times GMT) 0840 – ECB's Lane and Panetta to speak 1200 – Poland Apr. CPI 1215 – Canada Apr. Housing Starts 1230 – US May Empire Manufacturing 1255 – US Fed’s Williams (voter) speaking 1300 – Canada Apr. Existing Home Sales 1415 – UK Bank of England Governor Bailey and other MPC members to speak 0130 – Australia RBA meeting minutes Follow SaxoStrats on the daily Saxo Markets Call on your favorite podcast app: Apple  Spotify PodBean Sticher Source: Saxo Bank
KOG Report:  The week ahead for GOLD!! - 15.05.2022

KOG Report: The week ahead for GOLD!! - 15.05.2022

Knights of Gold Knights of Gold 15.05.2022 19:40
In last week’s KOG Report we suggested we wanted to see some bullish momentum to target the higher resistance levels before then coming down to swoop the low. We wanted higher into the 1900s where we wanted to take the long-term short position and said we would treat it level to level following Excalibur. We had our mark on 1850 and suggested that this level will see a reaction in price, as you can see the market tested it but only gave a small bounce before breaking it and then turning it into resistance. We had lower targets of 1845, 1833 and 1821 and mentioned we had a lower target of 1790. All but one of these lower targets have been met, the 1790 level is still active. We completed 22 targets out of 24 trades in Camelot on top of the full house of trades we had last week. So what can we expect in the week ahead? A lot of traders are asking if this is going back up. This is the benefit of KOGs level to level trading strategy following the Excalibur, it doesn’t matter if the market goes to the moon or down to the ground, we trade it as we see it up and down, which is why we give both scenarios. Read next: Altcoins: What Is Polkadot (DOT)? Cross-Chain Transfers Of Any Type Of Asset Or Data. A Deeper Look Into Polkadot Protocol | FXMAG.COM We’ll start by saying this is well overdue a retracement from this move that we’ve been seeing. However, we want to see where this finds a short-term bottom before then making the move into the key levels above, for this reason we will be taking shorts with caution into immediate support levels and looking for a confirmed reversal before taking any long positions to target the higher levels. There is a huge chance that Gold can start to range here instead of making that move higher, so we’ll trade it how we see it this week with a neutral bias. We have our lower target or 1790 which we would like to see completed and below that 1775 which is also a possibility. We have maintained the bearish view on Gold and our members know that we have targets even lower for this precious metal. We will therefore trade this as usual with two scenarios in mind using the same chart we have been using from last month. Scenario 1: The price pushes down on opening, we will be looking for our 1790 level to complete with the potential for a low around the 1780 price point. If these levels hold and we see a confirmed support then we see this as an opportunity to take the long trade back up towards the 1810, 1820 and above that 1835 price regions. As long as the price stays below the 1850 region we will then be looking to take this back down into our lower targets which we will share over the course of the week. Scenario 2: The market pushes the price to the upside, here we will be looking first for 1810 as the first point or resistance, if this resistance breaks and turns into support there are opportunities to trade this level to level to the upside targeting 1818, 1825, 1832 and above that 1837. The 1830-35 price region is where we want to see a reaction in price and if we find a strong resistance here we feel there will be an opportunity to short the market back down to target that 1790 and 1780 level. https://www.tradingview.com/chart/XAUUSD/cUVDp99c-XAUUSD-KOG-REPORT/ In summary: We’re level to level with caution on the shorts unless we get better entries from higher resistance levels and the bias remaining short overall but neutral for this week. We’ll be looking for the price to find some short term support below to either establish a new range or to then begin some form or retracement to the upside with the 1830-35 level being a very important region. As long as the price stays below 1850 we will be looking to target lower pricing on Gold. Range for this week we would say is 1770-1835. Read next: (TRX) TRON USD Decentralised Blockchain Platform That Focuses On Entertainment And Content Sharing. Altcoins: A Deep Look Into The TRON Network | FXMAG.COM Hope this helps in preparation for the week ahead, we will update you as we go along as we usually do. Please do support us by hitting the like button, leaving a comment and giving us a follow. We’ve been doing this for a long time now providing traders with in-depth free analysis on Gold, so your likes and comments are very much appreciated. As always, trade safe. KOG
Only Ugly US Data Could Reverse Sentiment | Gilt Yields In UK Were Steady To Lower

(WMT) Walmart Price Dropped Down As The Earnings Turned Out To Be Quite Low. Jerome Powell (FED) Seems To Be Ready To Get His Foot Down Regarding Monetary Policy And Boost US Dollar (USD) Further | Saxo Bank

Saxo Bank Saxo Bank 18.05.2022 09:10
Summary:  Risk sentiment remained strong in the US yesterday, as the major indices closed strongly at a more than one-week high on a day that saw both a strong US Retail Sales report for April and largest US retailer Walmart’s stock punished by the most in a single day since 1987 on a weak profit forecast. Fed Chair Powell said that the Fed won't hesitate to raise rates above neutral if necessary, helping to lift the entire US yield curve and perhaps helping to cool sentiment overnight.   What is our trading focus? Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) - S&P 500 futures pushed higher yesterday closing the recent short-term selloff cycle that started last Monday but are trading a bit softer this morning around the 4,075 level. US retail sales yesterday showed that the US consumer is still alive and comments from Home Depot’s CEO suggest that the US housing market is still strong despite recent higher mortgage rates with tight supply of homes to last several years. Overall, the dynamics are still the same with tighter financial conditions ahead and hawkish comments yesterday from several Fed members suggest our defensive stance on US equities is correct. Stoxx 50 (EU50.I) - Stoxx 50 futures closed above its 50-day moving average that we highlighted as the key focus point for the market in yesterday’s quick take. This is the first time since 20 April when technology stocks were staging a comeback with risk appetite before everything turned lower again. If Stoxx 50 futures can manage to stay above this moving average, there might be enough energy for a test of the 3,800. European car sales figures are out this morning and they are still weak which might add a bit of negative pressure among carmakers and car parts suppliers. EURUSD – strong risk sentiment and a weaker US dollar clearly go hand in hand, as yesterday’s market action demonstrated, but the euro got an extra boost from ECB governing council member Klaas Knot saying that the ECB shouldn’t exclude 50-basis point hikes from the menu of options. This drove a strong boost in ECB rate expectations, with end-2022 now priced for a +0.45% policy rate, 10 bps higher than the previous day. EURUSD traded up through 1.0500, a bullish reversal as that was a sticking point on the way down. Still, very heavy lifting would be needed to turn the bearish tide, with next resistance at the prior pivot higher near 1.0640, while more like 1.0800-1.0850+ would be needed to suggest a structural reversal. A new sell-off in risk sentiment will test the degree to which the latest hawkish tile from a growing number of ECB members weighs on the EURUSD exchange rate. USDJPY and JPY pairs – watching JPY crosses and USDJPY closely after US treasury yields jumped yesterday, especially at the long end of the curve, to which the JPY is traditionally most sensitive. Japan’s Q1 GDP estimate out overnight was better than anticipated as nominal GDP rose +0.1% and the economy (in real terms) contracted less than expected. In the JPY crosses, we have seen a wild ride on the recent swings in risk sentiment that now have pairs like EURJPY, AUDJPY and GBPJPY back near important retracement levels after steep sell-offs last week. These will likely tilt lower if bond yields stay calm and we see renewed risk aversion. Otherwise, the Bank of Japan will likely only come under fresh pressure to alter its policy if the USDJPY rate jumps to strong new highs and, for example, if global oil prices do likewise, increasing cost-of-living in Japan, etc. Gold (XAUUSD) trades lower after Fed chair Powell said the Fed will keep raising rates until inflation is brought under control. His comments helped lift inflation adjusted US Treasury yields with the 10-year real yield rising to 0.25%. The weaker dollar yesterday also helped boost risk appetite with stocks being the main recipients of these flows. For now, the bears remain in control, especially after the rejection yesterday at $1838, the 200-day moving average on XAUUSD. Silver (XAGUSD) meanwhile enjoyed some tailwind from recovering industrial metals with the XAUXAG falling to 83.90 after hitting a 22-month high of 88.5 last week. Crude oil (OILUKJUL22 & OILUSJUN22) tried but failed to break higher on Tuesday after the tailwind from a potential pickup in Chinese demand, as lockdowns begin to lift, was being offset by hawkish comments on interest rates from Fed chair Powell, and news that the US may ease some economic sanctions on Venezuela, a 2m b/d producer in 2017 reduced to just 0.7m b/d at present. The bid, however, returned late in the day when the API published a bullish inventory report that pointed to a continued and worsening tightness in the US crude and gasoline market after they saw stocks falling by 2.4m barrels and 5.1m barrels, respectively. The EIA will release its official report later Wednesday. Dutch TTF benchmark gas (TTFMM2) remains rangebound within a €85 to €110 range despite the fact Europe's gas inventories are rebuilding at the fastest rate on record as the region's buyers outbid competitors from Asia to acquire as much gas as possible at any price. According to Gas Infrastructure Europe total stocks have since the March low climbed by 202 TWh to 446 TWh, and at this rate will surpass the five-year average within the next few weeks. Asia’s LNG buyers have been less active than normal, driven by a combination of stocks being allowed to run down due to soaring prices and lower Chinese demand as its coronavirus outbreaks and lockdowns take its toll on demand for gas. US Treasuries (TLT, IEF) - sold off yesterday and took the 10-year Treasury benchmark yield sharply back higher toward 3.00% in the wake of strong US Retail Sales data and amidst positive risk sentiment. If the 10-year yield continues higher after yesterday’s 10 basis point jump, it is worth nothing that the recent top of 3.2% was within a few basis points of the 2018 high for the cycle at 3.26%. Meanwhile, the 30-year T-bond yield closed at 3.185, the second-highest daily close for the cycle, with an intraday cycle high of 3.31%. The US Treasury is set to auction 20-year T-notes later today. What is going on? Fed Chair Powell says “won’t hesitate at all” to take Fed Funds rate above neutral after saying that “what we need to see is inflation coming down in a clear and convincing way, and we’re going to keep pushing until we see that.” Powell admitted that taking levels above neutral could bring some pain and a rise in the unemployment rate. End-2022 Fed expectations rose about 10 basis points yesterday and sit at 2.82”, just shy of the 2.88% cycle highs from before the May 4 FOMC meeting, at which Powell discouraged the idea of hiking more than 50 basis points at a time. UK Apr. CPI out this morning in line with expectations. The headline year-on-year reading was 9.0% vs. 9.1% expected and 7.0% in March, while the Core CPI was 6.2% as expected and vs.5.7% in Mar. The month-on-month headline CPI was 2.5% vs. 2.6% expected and 1.1% in March. Walmart, the world’s largest retailer, suffers worst single-day price drop since 1987 as it cut its profit forecast, citing margin pressure concerns due to inflation, and the CEO vowing that “price leadership is especially important right now.” Home Depot gains on strong Q1 and better than expected Q2 outlook. The US home improvement retailer gained yesterday on a surprise Q1 comp sales of +2.2% y/y vs est. -2.4% y/y and saying on the conference call that Q2 was off to a strong start; the company says it is not seeing the consumer holding back and sees tight housing inventory lasting for five years. Japan Q1 GDP contracted less than expected. Japan’s Q1 GDP showed a contraction of 1% q/q sa following a 3.8% expansion in Q4, but it was still better than expected. The omicron wave and supply drags created pressures, but the outlook for Q2 is appears to be improving as the economy reopens and pent-up demand boosts consumer spending. UK unemployment drops to a 50-year low of 3.7%. For the first time since records, job openings (1.3 million) outnumber those out of work. In addition, the number of payrolled employees grew by 121,000 between March and April, to 29.5 million. A lot of people have chosen salaried employment over self-employment due to fear of recession and higher cost of living. Wages continue to move upward. But this is not enough to cope with inflation. Pay, excluding bonuses, rose by 4.2 % between January and March while cost of living was at 7 % in March and is expected to jump to 9 % in April. The situation is becoming unbearable for many households. We believe that the Bank of England will have no other choice but to speed up the interest rate hike cycle before pausing perhaps after the summer. As expected, U.S. April retail sales show the U.S. domestic economy is very resilient. Retail sales were out at 0.9 % versus the expected 1 %. After adjusting for monthly inflation, it was at 0.6 %. This is still very solid. There is no sign of imminent recession in the United States when we look at the U.S. consumer. Peloton sees twice the demand for its $750 bond offering. The struggling health company has seen strong demand for its bonds in a sign that risk appetite is still intact in the high yield debt market in the US. Australian wage growth in Q1 slightly softer than expected. The report showed Australian wages rising only +0.7% QoQ and +2.4% YoY vs. +0.8%/+2.5% expected, respectively and vs. +2.3% YoY in Q4. What are we watching next? Earnings Watch. Today’s focus is Tencent given the latest support from the Chinese government including comments yesterday from the Vice Premier signaling support for platform companies. Consensus is looking for Q1 revenue of CNY 141.1bn up 4% y/y and EPS of CNY 2.77 down 5% y/y. SQM is also reporting today and is one of the world’s leading lithium miners earning 41% of its profits from lithium and 59% from fertilizers and plant nutrients including potassium, and as well as other agricultural sector products. Both lithium and fertilizers are seeing high prices due to tight supply-demand situation. Today: Tencent, Experian, Burberry, Singapore Airlines, Cisco, Lowe’s, Target, Analog Devices, TJX, Synopsys, Copart, Trip.com, SQM Thursday: Xiaomi, Generali, National Grid, Applied Materials, Palo Alto Networks, Ross Stores, DiDi Global Economic calendar highlights for today (times GMT) 0800 – South Africa 1230 – US Apr. Housing Starts and Building Permits 1230 – Canada Apr. CPI 1230 – Canada Apr. Home Price Index 1430 – EIA's Weekly Crude and Fuel Stock Report 2000 – US Fed’ Harker (Non-voter) to speak 2350 – Japan Apr. Trade Balance 0130 – Australia Apr. Employment Data Follow SaxoStrats on the daily Saxo Markets Call on your favorite podcast app: Apple  Spotify PodBean Sticher Source: Saxo Bank
Podcast: BoJ losing control. Geopolitical risks for Tesla

Fed hawks may not let the equity rally extend! | MarketTalk: What’s up today? | Swissquote

Swissquote Bank Swissquote Bank 18.05.2022 10:58
The US equity markets rallied yesterday after taking over a positive session from the Europeans. However, the US retail sales data didn’t necessarily hint at slowing spending, and Jerome Powell didn’t say things that investors would normally like to hear. Powell’s words didn’t hit the investor appetite immediate, but mixed activity in US futures hint that appetite may not remain as strong in the coming sessions. In the FX, the US dollar eased from two-decade highs. Gold trades around the $1800 mark and crude oil bumps into solid topsellers approaching above the $115pb   The EURUSD rebounded past the 1.05 and Cable traded past 1.24. Yet, prospects of higher US rates, and the positive divergence between the Fed and other central banks should prevent the dollar from falling significantly. Eurozone’s final inflation data is due today, and should confirm a rise to 7.5% in April, an eye-watering number which should keep the European Central Bank (ECB) hawks and the euro bulls alert, and help the single currency consolidate its latest gains against the US dollar. Gold trades around the $1800 mark and crude oil bumps into solid topsellers approaching above the $115pb. On the earnings front, the US retailers reveal mixed earnings but they all agree on one thing: inflation impacts activity. Watch the full episode to find out more! 0:00 Intro 0:22 Market update 2:06 Jerome Powell is decided to bring inflation down! 2:48 High EZ inflation to keep euro bulls alert 3:41 ...but the dollar may not ease much! 4:42 Gold under the pressure on rising rates 5:31 Crude oil bumps into topsellers past $115pb 6:47 US retailers reveal mixed results, but agree that inflation is an issue Read next: Altcoins: What Is Monero? Explaining XMR. Untraceable Cryptocurrency!? | FXMAG.COM Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020.
Oil dips ahead of OPEC+, gold flat

Oil falls on Venezuala and EU, gold dips | Oanda

Jeffrey Halley Jeffrey Halley 18.05.2022 15:30
Venezuela/Europe send oil lower Overnight, oil prices touched multi-week highs until the US announced it was starting a process, potentially leading to an easing of sanctions on Venezuela. That immediately saw oil reverse all its impressive intraday gains and both Brent crude and WTI finished slightly lower on the day. The EU effectively allowing European importers to pay for Russian gas via roubles should take the edge off European gas prices and flow through to oil prices. Brent crude finished 1.05% lower at USD 112.70 a barrel, having tested USD 116.00 intraday. WTI, by contrast, finished just 0.10% lower at USD 113.60 a barrel, having also tested USD 116.00 intraday. Prices are unmoved in Asia. Tight API inventory data and soaring diesel prices in the US have combined to send WTI to a premium over Brent and is likely to limit the downside for both contracts, Venezuela, or not. Tonight’s official crude inventory data dump will now be closely watched, and sharp falls in gasoline and distillates inventories could increase the WTI premium over Brent crude. Brent crude has resistance at USD 116.00 and support at USD 111.50 a barrel. WTI has taken resistance at USD 116.00 a barrel as well, with support at USD 111.50. Any progress on Venezuela’s supply returning to international markets is potentially a game-changer and should mean the top of my longer-term range, at USD 120.00 a barrel, remains intact. Gold’s price action doesn’t inspire confidence Despite the US dollar falling heavily overnight, and risk sentiment rising generally, gold prices fell 0.53% to USD 1815.00 an ounce overnight, easing to USD 1814.50 in Asia. US yields climbing higher may have played a part, but the direction of the US dollar has been more important of late. When gold falls as the US dollar falls heavily, we should all take that as a warning sign, suggesting lower prices are the path of least resistance. As such, I believe gold’s downside risks have ratcheted higher. Support lies at USD 1789.00, followed by USD 1780.00 an ounce. Failure of the latter suggests a deeper correction to USD 1700.00. That move could occur quite quickly if USD 1780.00 fails. Gold has resistance at USD 1836.00, followed by the 200-DMA at USD 1836.80, and then USD 1850.00 an ounce. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Gold Stocks Have Performed Very Well Under Pressure

Gold pounces on stock market malaise | Saxo Bank

Ole Hansen Ole Hansen 19.05.2022 23:56
Summary:  Gold, in a downtrend since mid-April, has found a tentative bid amid continued turbulence across global stock markets. So far, however, the fresh bid has not been strong enough to rattle some of the recent established tactical short positions. For that to happen the metal needs a runaway upside day or a period of consolidation back above the 200-day moving average, currently at $1839/oz. From an absolute return perspective gold’s year-to-date performance in dollars can be viewed as a disappointing Gold, in a downtrend since mid-April, has found a tentative bid amid continued turbulence across global stock markets. So far, however, the fresh bid has not been strong enough to rattle some of the recent established tactical short positions. For that to happen the metal needs a runaway upside day or a period of consolidation back above the 200-day moving average, currently at $1839/oz. Read next: Altcoins: What Is PancakeSwap (CAKE)? A Deeper Look Into The PancakeSwap Platform| FXMAG.COM From an absolute return perspective gold’s year-to-date performance in dollars can be viewed as a disappointing, but when considering the impact of the stronger dollar and the steep losses in stocks and bonds, any diversified investor with gold is likely to be satisfied. The yield on US ten-year inflation adjusted bonds trades lower with the break below the 21-day moving average at +0.09% During the past month, gold has been suffering from the double blow of a stronger dollar and the FOMC (Federal Open Market Committee) signaling an aggressive pace of future rate hikes in order to combat inflation at the highest level in decades. Fine, if the economy does not suffer too much of a setback, thereby raising the risk of recession. What has changed during the past 48 hours has been dismal earnings news from large US retailers raising the risk of a deeper than expected economic slump. Most recently Target Corp which yesterday plunged the most since 1987’s Black Monday crash. In his comments the CEO sited persistent cost pressures and bloating inventories amid a change in consumer spending as reasons. These developments helped deepen the global stock market rout, and today the weakness has continued, thereby supporting short covering and fresh haven buying of US bonds while the dollar has softened. All developments that has supported the mentioned bid in gold. The yield on US ten-year inflation adjusted bonds trades lower with the break below the 21-day moving average at +0.09% signaling a loss of short-term bullish momentum.  Read next: Altcoins: What Is Litecoin (LTC)? A Deeper Look Into The Litecoin Platform| FXMAG.COM The loss of momentum in recent weeks have seen ETF (Exchange Traded Fund) investors reduce gold holdings in all but one of the last 18 days while money managers in the latest reporting week to May 10 cut their net long in COMEX gold futures to a three-month low. Interestingly the latest reduction was primarily driven by long liquidation with no signs of appetite for naked short selling.  We maintain a bullish outlook for gold given the need to diversify amid a troubled stock market and the increased risk of a policy FOMC policy mistakes driving yields and the dollar lower. From the chart below it is clear that gold has its work cut out, and a great deal of work is needed to mend the chart damage done during the past month. The first sign of improvement would be a break above the 200-day moving average at $1839 followed by $1868, the latter being the first level to signal loss of bearish momentum. Source: Saxo Group Source: Saxo Bank
Forex: XAU/USD Is Rising For The 3rd Day In A Row!

What's Going To Be Gold Price (XAUUSD)? Gold – Back in favour? | Oanda

Craig Erlam Craig Erlam 19.05.2022 23:53
Or just a blip? Gold has very much fallen out of favour over the last month as it fell 10% on the back of coming within a whisker of $2,000. But has something changed? We’ve seen plenty of risk aversion in the markets over the last 24 hours, with stock markets falling heavily, and rather than being particularly supportive for the dollar, it’s gold that has performed well which hasn’t really been the case in recent weeks. Read next: Altcoins: What Is PancakeSwap (CAKE)? A Deeper Look Into The PancakeSwap Platform| FXMAG.COM Perhaps that’s because higher inflation and therefore interest rate expectations have been behind all of the gloom in the markets, which is typically bullish for the dollar. Whereas the last 24 hours seem to have seen a shift. Rather than interest rates, it’s economic fears that are driving the negativity in the markets. Higher inflation is squeezing margins which means higher prices. And the Fed has gone from anticipating a soft landing, to softish and now just a safe one. That shouldn’t fill anyone with confidence. And maybe that’s why we’re seeing investors move back towards gold. Of course, we’ve seen plenty of big sentiment swings in the markets, especially this year, so that could change. But it’s possible that gold may be back in favour. The first test of this comes around $1,850 which has been support and resistance in the past and coincides with the upper end of the 55/89-period SMA on the 4-hour chart. This is followed by $1,875-1,900, a break of which would be a strong signal. A break back below $1,800 on the other hand would suggest quite the opposite unless accompanied by very positive economic news which seems unlikely at this point. Read next: Altcoins: What Is Litecoin (LTC)? A Deeper Look Into The Litecoin Platform| FXMAG.COM This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Follow FXMAG.COM on Google News
China: Slowdown in Non-Manufacturing Activity Raises GDP Downgrade Concerns

US Close – Stocks Near Bear Market, Crude Oil Price Higher On Supply Concerns, Gold Price (XAUUSD) Pops, Bitcoin (BTC/USD) Stabilizes | Oanda

Ed Moya Ed Moya 19.05.2022 23:51
US stocks edged lower as Wall Street became more focused over a deteriorating growth outlook that could see stubbornly high pricing pressures for the Fed into a much more aggressive tightening cycle. It doesn’t seem like we will see a deceleration in pricing pressures and that has many traders worried that the Fed will send the economy into a recession.  Right now markets are functioning properly but if we see another 5% decline with stocks, credit conditions will worsen and that could provide the Fed an excuse to stop tightening so aggressively.  Tighter financial conditions will hurt the parts of the economy that are doing well and further selling of stocks could remain the theme if the S&P 500 enters a bear market.  The S&P 500 is looking vulnerable here as more strategists slash their forecasts as recession risks rise.  Fed (Federal Reserve) Fed’s George affirmed the board’s stance that a half-point rate increase pace is appropriate.  The Fed remains focused with fighting inflation and they will remain aggressive with tightening policy until liquidity becomes a concern.  FX (Forex) The dollar is in freefall as investors buy up Treasuries over concerns that the economy is headed for a rough patch. The dollar was ripe for a pullback and today’s across the board weakness might continue a while longer. Read next: Altcoins: What Is PancakeSwap (CAKE)? A Deeper Look Into The PancakeSwap Platform| FXMAG.COM US Data A wrath of US economic data painted a gloomy picture of the economy: Jobless claims rose, the housing market is clearly cooling, another Fed regional survey showed the weakest print since early in the pandemic and the leading index turned negative.  Weekly jobless claims rose from 197,000 to 218,000. The Philly Fed manufacturing outlook fell sharply from 17.6 to 2.6.  Surging mortgage rates and record home prices led to a drop in April existing home sales  Crude Oil Price Crude prices rallied as the EU nears a key deadline to pay for Russian oil with a roubles account.  The oil market just has too many risks to supplies and still a strong short-term travel outlook both in the EU and US.  WTI crude should be well supported at the $100 level as US production is slowly increasing. Recession fears are rising but that impact won’t be felt for quite a while, which means the oil market won’t see imminent crude demand destruction. Crude inventories are too low for oil traders to turn bearish with WTI crude. Read next: Altcoins: What Is Litecoin (LTC)? A Deeper Look Into The Litecoin Platform| FXMAG.COM Gold Price Gold is acting like a safe-haven again as recession fears are triggering massive demand for Treasuries, which is sending both yields and the dollar lower. The US labor market is showing signs of weakness and that could lead fears that consumer spending will deteriorate much faster than most are expecting. The dollar is getting sold against everything and that is great news for gold. Right now, investors are looking for safety and Treasuries and gold should both outperform in the short-term.   Bitcoin (BTC) Bitcoin is hovering around the $30,000 level as investors continue to shy away from stocks.  A weaker dollar and bear market stock fears are making Bitcoin attractive again.  It seems the fallout from all the stablecoin drama that sent cryptos sharply lower is finally fading.  Bitcoin looks poised to consolidate here, but bulls should be happy to see prices are not mimicking what happens with the stock market.   Read next: Altcoins: What Is Monero? Explaining XMR. Untraceable Cryptocurrency!? | FXMAG.COM This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Follow FXMAG.COM on Google News
This Week's Tesla Stock Split Could Be The Best Moment To Buy The Stock! Twitter Stock Price Plunged!

Could XAU extend rally? Are Apple, Tesla good to short? | MarketTalk: What’s up today? | Swissquote

Swissquote Bank Swissquote Bank 20.05.2022 10:23
The US equities closed Thursday’s session in the negative following a choppy trading session, as investors’ hearts pounded between buying the dip, or selling further on recession fear. The US 10-year yield declined yesterday, and the sharp retreat in the US yields gave a boost to gold, raising question on whether the gold rally could be sustained, and if yes, how high could it extend. The dollar gave back gains, letting the EURUSD and GBPUSD rally, but the gains may remain short-lived if the dollar skew in market pricing continues. Tesla got kicked out of the S&P’s ESG index, which could have implications on its long-term price potential   On the individual stocks, news that Michal Burry opened a bet against Apple heated conversations about whether Apple is a good ‘short’. And finally, Tesla got kicked out of the S&P’s ESG index, which could have implications on its long-term price potential. Read next: Altcoins: What Is PancakeSwap (CAKE)? A Deeper Look Into The PancakeSwap Platform| FXMAG.COM Watch the full episode to find out more! 0:00 Intro 0:28 Market update 1:20 Is Apple a good stock to short? 3:50 US yields boosted gold. Is gold rally sustainable? 6:25 FX update: euro, pound up on softer dollar 7:58 Tesla out of S&P ESG index: what does it mean for stock performance? Ipek Ozkardeskaya Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020. Follow FXMAG.COM on Google News
Top 10 Stocks to Watch: August 2023 - BY: RYAN SULLIVAN

WCU: Comeback week for industrial and precious metals | Saxo Bank

Ole Hansen Ole Hansen 20.05.2022 18:11
Summary:  The commodity sector continued to find support this past week, despite the hurricane sweeping across global stock markets where the S&P 500 so far has recorded its fourth biggest drawdown since 2010. Gains this past week were concentrated in industrial and precious metals - sectors that have suffered setbacks during the past two months. In addition, the risk of a global food crisis continues to support the agriculture sector while a tight fuel-product market kept crude oil range bound despite economic growth worries. The commodity sector continued to find support this past week, despite the hurricane sweeping across global stock markets. US stocks posted their biggest daily drop in almost two years on Wednesday, driven by surging inflation, weak earnings and the prospect of aggressive monetary policy tightening hurting economic growth. Nevertheless, the Bloomberg Commodity Spot index managed to climb by 1.6% and, while we are seeing the fourth biggest drawdown in the S&P 500 since 2010, the commodity sector continues to highlight the need for both supply and demand to keep prices stable. With the supply of many key commodities – from grains and coffee to fuel products and some industrial metals – being challenged, the sector is likely to remain supported despite softer growth; especially considering the prospect for a government-supported stimulus boost to a post-lockdown China. Growth in the country has been increasingly challenged by its stubborn adherence to the dynamic zero-Covid policy despite mounting economic and social costs. Gains this past week were concentrated in industrial and precious metals – sectors that have suffered setbacks during the past two months. In addition, the risk of a global food crisis continues to rise, with Russia’s aggression in Ukraine and poor weather conditions being the main culprits for the disruption to a lower supply of key food commodities. The grains sector hit a fresh record high with the Bloomberg Grains Spot Index sprinting to a +30% gain on the year. Soybeans led the rally, followed by wheat with corn registering a small loss in the week. Global worries about a food crisis persist with disruptions in shipments from the Ukraine, one of the world’s most important supplier of high-quality wheat and sunflower oil causing ripples around the world. Ukrainian farmers have almost completed the sowing of spring wheat for the 2022 harvest and the overall rate of this year's spring crop sowing is 25% lower than at the same date in 2021, the agriculture ministry said on Friday. A couple of positive supply news, however, helped ease but by no means remove worries about a global food crisis. Palm oil slumped after Indonesia ended its short-lived export ban. Wheat which earlier in the week surge to fresh highs in Europe and the US on worries about supplies from India saw prices ease on forecast for a bumper crop year in Russia. However, comments from agriculture analysis firm Gro Intelligence that the world only has 10 weeks’ worth of wheat consumption in reserve will keep prices supported. At least until we get some more clarity over production levels in Europe and North America, both areas that have seen a challenging weather-related start to the growing season.In our latest industrial metal-focused update, we wrote that the precious metals sector was looking to China for a rebound and, indeed, this week saw some of the signals that China is starting to turn more supportive. Before then, the Bloomberg Industrial Metal Index had lost 25% since the early March peak, with the main catalysts – aside from global growth worries – being China and its zero-Covid policy. Outbreaks in Shanghai and Beijing have been met with a prolonged period of lockdown, hurting economic growth and creating major bottlenecks across global supply chains.This week in China, we saw retail sales slump 11% and youth unemployment hit a record 18.2%, as well as economists forecasting downgraded GDP. Responding to these developments on Friday, Chinese banks cut their 5-year loan rate by a record 0.15 basis points. Keep in mind, this is happening while the rest of the world is going in the opposite direction, and it highlights the Chinese government’s willingness to support the economy. More support will likely follow as the government seeks to support infrastructure and property projects, which are both critical for industrial metal demand.Around the timing of the early March peak in prices, stock levels of the four major industrial metals held at warehouses monitored by the LME and Shanghai Futures Exchange stood at 1.77 million tons. Instead of rising as demand according to the price action showed weakness, this level has continued to fall, reaching 1.43 million tons this week – a 19% decline during this time.It highlights our view that a global economic slowdown does not prevent industrial metals from moving higher, despite supply potentially struggling to keep up with demand not only from China, but also from the energy transition away from fossil fuels. A transition that, in name, is green but actually is very black when you consider the number of different metals that are needed in the process. These range from aluminum, copper and nickel to more exotic metals like rare earth minerals, cobalt and lithium.High-Grade Copper: Despite the month-long correction, HG copper remains rangebound, having so far failed to properly challenge key support in the $4 per pound area. As it stands, the recovery this week has taken HG copper back to its 21-day moving average, with a break above signaling a loss of negative price momentum. If realised, it may soon force speculators to cover a net short which, in the week to May 10, doubled to reach a two-year high at 17.7k lots or 201k metric tons. Source: Saxo Group Gold, in a downtrend since mid-April, found a fresh bid amid continued turbulence across global stock markets. During the past month, gold suffered from the double blow of a stronger dollar and the FOMC signaling an aggressive pace of future rate hikes to combat inflation at the highest level in decades. This is fine if the economy does not suffer too much of a setback, thereby raising the risk of recession. What changed this week has been dismal earnings news from large US retailers raising the risk of a deeper than expected economic slump.We maintain a bullish outlook for gold, given the need to diversify amid a troubled stock market and the mentioned potential increased risk of a FOMC policy mistake driving yields and the dollar lower. From the chart below, gold has its work cut out, and a great deal of work is needed to mend the damage done during the past month. However, the first sign of improvement has been the break above the 200-day moving average at $1839 – with the next big challenge being $1868, the 38.2% retracement of the 210-dollar April to May correction.Silver, supported by the bounce across industrial metals, seems to have found its footing following a 22% correction, which – at one point – extended below previous support around $21.50. With speculators having cut their positions to neutral, any renewed upside momentum is likely to attract fresh buying from underexposed funds. Crude oil spent most of the week challenging the upper end of the trading range that has prevailed for the past six weeks. However, relative calm market action during this time has been hiding a market in continued turmoil where major opposing forces have managed to keep it rangebound. During this time, the U.S. government has injected millions of barrels in a failed attempt to suppress the price while Chinese demand has suffered due to its zero-Covid strategy.The fact the market has not fallen below $100 highlights the underlying strength with tight supply of key fuels, self-sanctioning of Russian crude oil, OPEC struggling to increase production and unrest in Libya all supporting the market. With China potentially starting to ease lockdowns and with unrest in Libya still growing, the short-term price risk remains firmly skewed to higher prices.During the past few weeks, the focus has turned from a rangebound crude oil market to the product market where the cost of gasoline, diesel and jet fuel have surged to levels not seen in years (if ever). The combination of refinery maintenance, a post pandemic reduction in capacity as well as self-sanctioning of Russian products have all led to incredible tight markets. Especially in North American refineries, where they are running flat out to produce what they can and, in turn, benefitting from mouthwatering margins.So, despite the prospect for slower global economic growth, the price of crude oil remains supported. If we stick to our wide $90 to $120 range call for Brent during the current quarter, while still considering structural issues (most importantly the continued level of underinvestment and OPEC’s struggle to increase production), this will continue to support prices over the coming quarters. US natural gas had another rollercoaster week, ending up off the highs after twice finding resistance around $8.5/therm. The current price is up by 200% compared to the same time last year, with record exports via LNG, flat production growth and a recent heatwave across the southern states increasing demand for cooling. However, the weekly injection of 89 billion cubic feet (bcf) to 1732 bcf was in line with expectations and helped reduce the deficit to the 5-year average to 15.2%. In addition, the milder weather ahead and Europe suffering from a temporary bout of LNG indigestion could suggest a period of stable prices. However, overall rising global demand and a sharp discount to prices in Europe and Asia is likely to prevent any significant weakness during the coming months. Source: Saxo Bank
OPEC+ Are Expected To Keeping Oil Production Unchanged, AUD/USD Trades At Its Highest Levels

Crude Oil Calm, Gold Price (XAU/USD) Rises | Oanda

Jeffrey Halley Jeffrey Halley 23.05.2022 14:34
A quiet day for oil markets Oil prices edged higher on Friday in New York, as the persistent squeeze in refined petroleum products in the US, and ever-present Ukraine/Russia risk underpinned prices, with China slowdown and US recession noise limiting gains. Mind you, in one article I read this morning, China’s recovery hopes were supporting oil while China’s slowdown hopes were capping gains. I guess it’s not just equity markets that are very confused right now. I do note, though, that the Brent crude premium over WTI reasserted itself into the end of the week, so perhaps the worst of the US diesel and gasoline squeeze is passed for now. Brent crude rose by 1.10% to USD 112.55 on Friday, gaining another 0.70% to USD 113.30 a barrel in Asian trading. WTI rose 0.40% to USD 110.55 on Friday, gaining another 0.35% to USD 110.90 a barrel today. The price action is consistent with a market that is not strongly leaning one way or another at the moment. Overall, I am expecting Brent crude to bounce around in a USD 111.00 to USD 117.00 range this week Brent crude has resistance at USD 116.00 and support at USD 111.50 a barrel. WTI has resistance at USD 113.00 and USD 116.00 a barrel, with support at USD 108.00. Overall, I am expecting Brent crude to bounce around in a USD 111.00 to USD 117.00 range this week. Follow FXMAG.COM on Google News Gold rises on weaker US dollar Gold prices rose on Friday, climbing just 0.24% to USD 1844.00 an ounce. In Asia, they have gained 0.42% to USD 1854.00 an ounce. Although gold’s rally has been impressive over the past week, it has yet to be proven that it is not just the result of a weaker US dollar. The true test of its resolve will be its ability to maintain gains when the US dollar starts rising again. Nevertheless, the technical picture is swinging back to a further test of the upside with resistance at USD 1860.00 and then USD 1885.00 an ounce, its 100-day moving average. Support is at USD 1845.00 and USD 1840.00, followed by USD 1832.00 an ounce. Read next: Altcoins: Ripple Crypto - What Is Ripple (XRP)? Price Of XRP | FXMAG.COM This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Learn more on Oanda
Declines At The Close Of The New York Stock Exchange, The Drop Leaders Were Nike Inc Shares

Global stocks retreat after rebound in previous session - 24.5.2022 | IFCMarkets

Ara Zohrabian Ara Zohrabian 24.05.2022 14:05
Todays’ Market Summary The Dollar weakening has halted Futures on three main US stock indexes are down Brent is edging lower currently as an agreement on Russian oil imports ban still escapes European Union though German economy minister says he expects EU embargo on Russian oil 'within days'. Gold prices are edging up currently Top daily news Equities are pointing down currently as US Treasury yields inch down while markets rebounded on Monday. Amazon slipped 0.03% amid reports it is planning to sublease some of its warehouse space because the pandemic-fueled surge in online shopping has slowed, Microsoft shares rose 3.2% outperforming market on Monday. Forex news Currency Pair Change EUR USD -0.32% GBP USD -0.04% USD JPY +0.37% AUD USD -0.36% The Dollar weakening has halted currently. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, lost 0.5% on Monday. EUR/USD joined GBP/USD’s continuing climbing Monday while the Ifo institute reported German business sentiment continued to improve in May. Both pairs are down currently. AUD/USD resumed its advancing yesterday while USD/JPY continued its climbing with the yen higher against the Greenback currently and Australian dollar retreating. Read next: Altcoins: Ripple Crypto - What Is Ripple (XRP)? Price Of XRP | FXMAG.COM Stock Market news Indices Change Dow Jones Index -0.59% Nikkei Index -1.14% Hang Seng Index -1.62% Australian Stock Index -0.58% Futures on three main US stock indexes are down currently ahead of U.S. manufacturing purchasing managers survey report at 15:45 CET with the yield on benchmark 10-year Treasury notes inching down to 2.841%. US stock market reversed the selloff yesterday as President Biden said that he was considering easing tariffs on China. The three main US stock index benchmarks booked daily gains in the range of 1.6% to 2.0% Monday led by mega-cap growth shares. European stock indexes are down currently after closing up Monday led by banking and mining shares while European Central Bank President Christine Lagarde surprised markets by stating about possible rate hike as early as July. Asian indexes are falling today with Hong Kong’s Hang Seng index leading losses while Markit reported Japan's manufacturing activity grew at the slowest pace in three months in May. Read next: Altcoins: Cardano (ADA) What Is It? - A Deeper Look Into Cardano (ADA) | FXMAG.COM Commodity Market news Commodities Change Brent Crude Oil -0.52% WTI Crude -1.31% Brent is edging lower currently as an agreement on Russian oil imports ban still escapes European Union though German economy minister says he expects EU embargo on Russian oil 'within days'. Prices advanced marginally yesterday. US West Texas Intermediate WTI added 0.01% but is lower currently. Brent gained 0.7% to $113.42 a barrel on Monday. Gold Market News Metals Change Gold +0.15% Gold prices are edging up currently. Spot gold yesterday closed up 0.39% at $1852.74 an ounce on Monday.
Commodities Update: Strong Russian Oil Flows to China and Volatility in European Gas Market

Crude Oil Rangebound, Gold Price (XAU/USD) Shines | Oanda

Ed Moya Ed Moya 24.05.2022 20:02
Oil looking for direction Oil prices remain directionless as energy traders try to assess how significant the deceleration in economic activity will be for the short-term crude demand outlook. The oil market remains tight but the COVID situation in China points to a gradual pickup in demand and that might keep this market rangebound a while longer. Saudi Prince Faisal bin Farhan noted that the kingdom has done what it can for global oil markets and that should mean production increases will remain slow. Oil prices will likely remain supported above the USD 100 level for the rest of the year. ​ ​ It looks like the only thing that will send oil back to the pre-COVID levels is demand destruction across the world’s largest economies and that probably won’t happen. WTI crude pared gains after a steady stream of weakening US economic data, but the overall outlook is still ok and a recession is unlikely until 2024. Gold Gold prices are surging as Treasury yields plunge following a wave of risk aversion that stemmed from disappointing earnings and deteriorating economic data from the US. ​ Non-interest bearing gold is a safe-haven again and it could be on the verge of a major breakout if prices can recapture the USD 1885 level. A peak in Treasury yields is in place and now the dollar looks like it is ready for a pullback as the ECB is ready to raise rates which is good news for the euro. ​ Read next: Altcoins: What Is Monero? Explaining XMR. Untraceable Cryptocurrency!? | FXMAG.COM There might be no stopping gold right now as the wall of worry on Wall Street continues to grow. ​ Gold should remain supported as inflationary pressures weigh further, China’s COVID situation remains a big unknown, and corporate America continues to slash outlooks. Follow FXMAG.COM on Google News This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
The Grains Sector Saw Continued Demand| Acceleration In The Sale Of Gold

Crude Oil And Price Of Gold (XAU/USD) Head Higher | Oanda

Jeffrey Halley Jeffrey Halley 25.05.2022 14:24
White House unnerves oil markets Oil prices continued to range trade overnight, finishing almost unchanged in New York. Asia, though, has seen both Brent crude and WTI rise. A couple of items seem to be behind the move. A sharp 4.20 million drop in gasoline inventories late in New York from the API Inventory data is likely supportive, with gasoline prices becoming a major issue in the US. Following on from that, White House officials explicitly refusing to say possible crude export restrictions were off the table appears to have spooked Asian suppliers. The last thing the world needs right now is US crude oil export restrictions with global supplies already tight. That saw both Brent crude and WTI spike 1.0% higher in early Asian trade, although those gains have eased as the session has gone on. Brent crude is 0.90% higher at USD 114.70 a barrel, and WTI is 0.65% higher at USD 110.90 a barrel. The White House likely needs to “clarify” its stance, least it creates unintended consequences by pushing crude prices higher. Brent crude, notably, is testing multi-week resistance today. Brent crude is testing resistance at USD 114.70 today, which is followed by USD 116.00, with support at USD 112.00. Failure of USD 116.00 could set up a retest test of my medium-term resistance at 120.00. ​ WTI is taking comfort from the White House stance and is sitting in a USD 108.00 to USD 112.00 a barrel range. Nevertheless, a topside breakout by Brent crude will almost certainly drag WTI higher as well, precisely what President Biden doesn’t want. Gold rises once again Gold had another decent overnight session, buoyed by lower US yields and a still-weakening US Dollar. Gold finished 0.69% higher at USD 1866.50 an ounce. In Asia, some US dollar strength has seen it weaken slightly by 0.40% to USD 1859.00 an ounce. Overall, although I acknowledge gold’s upward momentum, I remain sceptical of its longevity until it manages to hold on to material gains in the face of US dollar strength. Read next: (TRX) TRON USD Decentralised Blockchain Platform That Focuses On Entertainment And Content Sharing. Altcoins: A Deep Look Into The TRON Network | FXMAG.COM The technical picture continues to remain supportive, and it seems only a marked US dollar recovery will cap gold’s rally. Gold took out resistance at the double top at USD 1865.00 an ounce which becomes intraday support, followed by USD 1845.00 and USD 1840.00 an ounce. It should now target USD 1886.00, its 100-day moving average. That would open up a test of USD 1900.00, although I suspect there will be plenty of option-related selling ahead of that level. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Follow FXMAG.COM on Google News
SEK: Riksbank's Impact on the Krona

Crude Oil steady, Gold Price (XAU/USD) Dips As US Dollar (USD) Rises | Oanda

Jeffrey Halley Jeffrey Halley 26.05.2022 15:59
Oil markets slumber Oil prices had another comatose session by their standards, barely rising from the day before. Nevertheless, both Brent crude and WTI have held on to all their recent gains, suggesting the weaker side is the upside in prices for now. While China slowdown fears are receding in the minds of traders, for now, fears persist around the increasing tightness of the US diesel market, and I suspect not ruling out export controls has unnerved international markets, and rightly so. I expect prices to remain firm for the rest of the week, with the global data calendar fairly light. Brent crude rose 0.60% to USD 114.35 overnight, where it remains in an equally quiet Asian session. WTI rose 0.40% to USD 110.70, adding just 20 cents to USD 110.90 a barrel in Asia. Brent crude has resistance at USD 115.00 and USD 116.00 today, with support at USD 112.00. A rally through USD 116.00 could set up a retest test of my medium-term resistance at USD 120.00. ​ WTI is taking comfort from the White House stance and is sitting in a USD 108.00 to USD 112.00 a barrel range. Nevertheless, a topside breakout by Brent crude will drag WTI higher as well, allowing a test of the USD 115.00 to USD 116.00 resistance zone. Gold weakens on US dollar strength Gold fell by 0.70% to USD 1853.25 an ounce overnight, retreating another 0.45% to USD 1845.00 an ounce in Asia. As I have touched on before, the true test of gold’s underlying strength will be maintaining gains in the face of a US dollar rally. The fall by gold over the last 24 hours in the face of modest US dollar strength does not fill me with confidence. Further US dollar strength could see gold face one of its ugly downside shakeouts. Read next: Altcoins: Tether (USDT), What Is It? - A Deeper Look Into The Tether Blockchain| FXMAG.COM Gold has nearby support at USD 1842.00, followed by USD 1836.00 an ounce. Failure sees the possibility of a mini-capitulation by longs that could reach as far as USD 1780.00 an ounce. On the topside, gold has resistance at USD 1870.00, followed by USD 1886.00 an ounce, its 100-day moving average. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Follow FXMAG.COM on Google News
FXStreet’s Dhwani Mehta Opinion About Gold Movements

Gold Price Analysis: XAU/USD holds above 200-DMA near $1,850 as focus turns to Friday’s US inflation data

FXStreet News FXStreet News 26.05.2022 16:43
Gold Price is holding above its 200-DMA in the $1,850 area and is back to nearly flat on the week. Traders are weighing the tailwinds of a softer USD and US yields versus strong US equities, as key Friday inflation data looms. How Fed And USD May Affect Gold? Gold Price (XAU/USD) is for now holding just above its 200-Day Moving Average at $1,839 and trading near the $1,850 level, though still with a slight downside bias on the day, despite Thursday’s worse-than-expected US GDP figures and Wednesday’s not as hawkish as feared Fed minutes release. Indeed, in wake of the weak data and modest paring back of hawkish Fed bets, the US dollar is a tad weaker and US yields are nudging lower, a combination that would normally be a tailwind for gold. Stronger Stocks - E.G. S&P 500 But US equities are rallying, with the S&P 500 last trading up around 1.4% on the day and eyeing a test of its 21-Day Moving Average for the first time since mid-April. On the week, the index is trading with gains of more than 3.0% and this appears to be weighing on the safe-haven precious metal. Traders are attributing stock market gains to weak GDP data reducing the need for aggressive Fed tightening and to strong earnings from a few US companies, including retail giant Macy’s. Read next: Altcoins: Tether (USDT), What Is It? - A Deeper Look Into The Tether Blockchain| FXMAG.COM Either way, the better tone to risk appetite is for now keeping XAU/USD on the back foot. Having been as high as the $1,870 level earlier in the week, spot gold’s gains on the week have been eroded back to only about 0.2% from around 1.2%. But the recent pullback towards the 200-DMA might prove a good opportunity for the gold bulls to add to long positions if they think that hawkish Fed bets will continue to be pared in the weeks ahead and, as a result, the buck and US yields continue softening. If it contributes to the strengthening narrative that US inflation has peaked, Friday’s US April Core PCE report could lead to a further reduction of Fed tightening bets and gold could well end the week back at highs in the $1,870 area. Follow FXMAG.COM on Google News
Expectations of decent sales during holiday season have let Best Buy gain

What's Fed Going To Do!? Which Way Will USD Go? Bitcoin Price (BTC/USD) Is Still Near $30K | Citi says buy the dip in European & EM stocks! | MarketTalk: What’s up today? | Swissquote

Swissquote Bank Swissquote Bank 27.05.2022 10:18
Fed minutes released on Wednesday weren’t as hawkish as many investors feared: the Fed deciders mostly agreed that inflation is too high and labour market is too tight and that they should raise the rates by 50bps for the next two meetings. But, there was no sign that the Fed would go down the 75bp hike road. US Indices, EUR/USD And Gold Price US indices gained for the second day as the FOMC minutes helped improving the investor mood. Nvidia jumped. But the futures are slightly in the negative at the time of writing, as the rally in energy prices certainly throw a shadow on the latest optimism, keeping the inflation worries tight, as the soaring energy prices are one of the major responsible for the skyrocketing inflation. The barrel of US crude rallied above the $115 mark, and consolidates above this level this morning. The US dollar continues softening, the EURUSD tests 1.0750 offers, gold remains bid above the 200-dma though with a fading positive momentum. Turkish Lira (TRY) The lira, on the other remains, and should remain under decent negative pressure as the central bank insists keeping its policy rate at 14% level. And finally, Bitcoin slides below the $30K mark as the ECB points to financial stability concerns due to cryptocurrencies. Read next: Altcoins: Tether (USDT), What Is It? - A Deeper Look Into The Tether Blockchain| FXMAG.COM Watch the full episode to find out more! 0:00 Intro 0:32 Fed is not 'that' hawkish after all! 2:54 Market update 4:19 Dark clouds above our head 5:17 Citi says 'buy the dip' in European & EM stocks 7:14 I say 'be careful' with Turkish BIST & the lira 9:00 FX, commodity update: EUR, Gold and Bitcoin Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020. Follow FXMAG.COM on Google News
Fed And US Dollar (USD) Are All About Mixed Feelings, Christine Lagarde And ECB In General May Support Euro Even In July. BoE's Bailey Also Teases A Rate Hike. XAU, XAG And Crude Oil Went Higher As USD Weakened | OneRoyal

Fed And US Dollar (USD) Are All About Mixed Feelings, Christine Lagarde And ECB In General May Support Euro Even In July. BoE's Bailey Also Teases A Rate Hike. XAU, XAG And Crude Oil Went Higher As USD Weakened | OneRoyal

OneRoyal Market Updates OneRoyal Market Updates 30.05.2022 10:14
Weekly Recap It was another bearish week for the US Dollar as the greenback continued to sell off from YTD highs. The FOMC meeting minutes, released mid-week, did little to inspire a fresh rally in the Dollar. While the minutes confirmed the Fed’s hawkish stance and reinforced expectations for further 50bps hikes in June and July, there was little in the way of exciting details to get bulls reinvigorated. Additionally, with the Fed having seemingly turned more hawkish since that meeting, the minutes felt a little outdated. Christine Lagarde, ECB And Rate Hikes On the data front, a string of weaker-than-expected indicators out of the eurozone heightened growth concerns. With ECB’s Lagarde essentially confirming a July rate-hike, recession fears weighed on European asset markets though EUR itself remained well bid. Elsewhere, equities markets generally saw a choppy week though most indices ended the week in the green, benefitting from the weaker US Dollar. Read next: Altcoins: What Is Polkadot (DOT)? Cross-Chain Transfers Of Any Type Of Asset Or Data. A Deeper Look Into Polkadot Protocol | FXMAG.COM BOE’s Bailey warned that further rate hikes will likely be necessary in the face of rising inflation. The new fiscal package announced by the UK government this week, aimed at helping households fight rising energy bills, has further increased the likelihood of BOE rate hikes in the near-term. Weaker Dollar, Stronger Crude, Gold And Silver Commodities prices were higher over the week also. Gold, silver and oil all rallied on the back of a weaker US Dollar. With monetary policy divergence between the Fed and other central banks drying up, USD pressure has helped commodities stay afloat recently. Coming Up This Week Australian GDP Australian GDP will be closely watched this week on the back of the recent RBA rate hike. With the bank lifting rates and sounding firmly hawkish in its outlook and assessment, this week’s data might further support growing RBA rate hike expectations. With the country having emerged from one of the longest lockdowns of the pandemic, the economy has been on the bounce-back. However, as we have seen elsewhere, the economy has still been rocked by rising inflation and supply constraints. Traders will be keen to see the extent to which these factors weighed on the economy over the last quarter. BOC Rate Decision The BOC is widely expected to raise rates when it convenes for this month’s meeting mid-week. All 30 economists polled by Reuters ahead of the event are looking for a .5% hike. With this in mind, the focus will be on the bank’s forward guidance. If the BOC gives a clear signal that further hikes are coming in the near future, this should drive CAD higher near-term. However, if there is any indication that the BOC might look to hold off on any further rate hikes near-term, this will likely see cad dragged lower. Read next: Altcoins: Cardano (ADA) What Is It? - A Deeper Look Into Cardano (ADA) | FXMAG.COM US Non-Farm Payrolls The latest set of US labour market indicators this week will be closely watched as we head to the June meeting. Recent Fed commentary has been decidedly hawkish and it would likely take a major downside shock to change this narrative. Even then, it certainly wouldn’t impact the June rate hike and would likely only factor in forward guidance issued by the Fed. Still, with slowdown fears building, any weakness would no doubt act as a headwind to risk sentiment in the short-term. Forex Heat Map Technical Analysis Our favourite chart this week is the Dollar Index (DXY) The DYX has pulled back from recent multi-year highs and is now sitting on a make-or-break level at 101.94. This level was the 2020 closing high price. While the level holds as support, DXY is likely to recover and continue the longer-term bull trend. Below here, however, there is room for the correction to develop further towards next support at 100.37 Economic Calendar Plenty of key data releases to keep an eye on this week including Australian GDP, BOC rate decision and US Non-Farm Payrolls to name a few. Please see full calendar below for the complete schedule . Follow FXMAG.COM on Google News
Oil Could Be Ready To Pop, The Bank Of England Market Pricing Is More Mixed

WTI And Brent (Crude Oil) Trade Really High, OPEC+ Is Expected Not To Support The Price. (XAUUSD) Gold Price Seems To Pausing And Resembling "The Calm Before The Storm" | Oanda

Jeffrey Halley Jeffrey Halley 30.05.2022 14:54
Brent crude rises above USD 120.00 The disconnect between energy prices and optimism in equity markets continues today in Asia. On Friday, oil prices surged once again, driven by an unrelenting squeeze on refined products, notably diesel and gasoline, globally, with the US driving season about to begin in earnest. Brent crude rose by 1.63% to USD 119.20 a barrel on Friday, rallying another 0.70% to USD 120.05 this morning. WTI rose by 0.85% to USD 115.10 a barrel on Friday, rallying another 0.83% higher to USD 116.05 in Asia today. Markets pricing in peak virus in Beijing and Shanghai are behind the rally in oil prices today, with a China reopening likely leading to increased oil consumption. Unlike recent times, markets seem unconcerned about oil moving back to March highs, emphasising how much pent-up risk-sentiment demand there appears to be out there. We can expect no solace from OPEC+ on production increases on Thursday. The grouping cannot pump to meet its present quotas as it is, and a 430,000 bpd increase is all we can expect. Additionally, the EU Russian oil import ban is still a work in progress and if it gets over the line this week, expect supplies to tighten again. As such, the risks are now increasing of a move towards the post-Ukraine highs we saw in February. Both Brent crude and WTI are at the top of my expected medium-term ranges at USD 120.00 and USD 115.00 respectively. A weekly close above these levels would be a major signal indicating more gains ahead. Brent crude’s next technical resistance is at USD 124.00 a barrel, and then USD 132.00, with support at USD 116.00. WTI has resistance nearby at USD 116.70 a barrel, with nothing afterwards until USD 127.00 a barrel. Support is at USD 115.00 and USD 113.00 a barrel. Gold trades sideways Gold seems determined to bore traders to death after another inconclusive overnight range-trading session. It finished Friday 0.13% lower at USD 1853.00 an ounce, before gaining 0.44% to USD 186.75 an ounce in Asia today. Gold’s price action continues to suggest caution, with the US dollar sell-off not translating to any meaningful gold strength. If global risk sentiment turns lower, gold could quickly follow. Gold has nearby support at USD 1840.00, followed by USD 1836.00 an ounce. Failure sees the possibility of a mini-capitulation by longs that could reach as far as USD 1780.00 an ounce. Gold has resistance here at USD 1862.00, ​ then USD 1870.00, followed by USD 1886.00 an ounce, its 100-day moving average. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Can Price Of Gold Reach $1900 Soon? Lower Yields And Weaker US Dollar (USD) Makes Dollar Go Higher | FXStreet

Can Price Of Gold Reach $1900 Soon? Lower Yields And Weaker US Dollar (USD) Makes Dollar Go Higher | FXStreet

FXStreet News FXStreet News 30.05.2022 16:41
Gold Price traded with upside on Monday as the US dollar continued to fade despite holiday-thinned trading conditions. XAUUSD was last changing hands near $1,860 and eyeing recent highs having found decent support at its 21 and 200 DMAs. Should market participants continue to pare Fed tightening bets, gold could reclaim $1,900, even if risk appetite also rebounds. Gold Price (XAU/USD) is trading with an upside bias in quiet, US holiday-thinned trade and eyeing a test of last week’s highs around $1,870 per troy ounce. At current levels around $1,860, XAUUSD is about 0.4% higher, having found support earlier in the session at the 21-Day Moving Average (at $1,849.25) and amid continued technical buying after spot prices found solid support at the 200 DMA (at $1,840) last week. US Economic Data Gold’s advances on Monday come despite a positive tone to global macro trade and are being driven by a continued weakening to fresh monthly lows in the US dollar. In wake of US Consumer Price Inflation data released earlier in the month and Core PCE inflation data released last week, market participants have become less worried about inflation in the US and, as a result, Fed tightening bets have seen a modest pullback (i.e. for H2 2022 and 2023). Read next: Altcoins: Tether (USDT), What Is It? - A Deeper Look Into The Tether Blockchain| FXMAG.COM US Bonds And US Dollar (USD) Helps XAUUSD US bond markets are closed on Monday, but price action in gold and USD markets suggests that yields will probably open the week lower, a continuation of the weakening trend that has, in tandem with the recent weakening of the US dollar, boosted XAUUSD by over 4.0% from sub-$1,790 mid-month lows. US data will be in focus this week with various tier one releases including the May ISM Manufacturing PMI survey and official May labour market report all out later in the week. Read next: Altcoins: Cardano (ADA) What Is It? - A Deeper Look Into Cardano (ADA) | FXMAG.COM Inflation Analysts argued that should the trends of easing US inflation fears, easing Fed tightening bets and subsequently, more downside in US yields and the buck continue, that could be a bullish medium-term driver for gold, even if it also boosts risk appetite (i.e. US equities). With XAUUSD having found such strong support at its 21 and 200 DMAs, the outlook for further upside towards the 50 DMA near $1,900 looks good. Follow FXMAG.COM on Google News
Oil Could Be Ready To Pop, The Bank Of England Market Pricing Is More Mixed

The EU's Ban Affects Crude Oil Price, Gold Price (XAU/USD) Wouldn't Have Become A Blockbuster | Oanda

Jeffrey Halley Jeffrey Halley 31.05.2022 22:31
Europe’s ban on Russian oil sends black gold higher The announcement that a partial EU ban on Russian oil imports has made it over the finish line sent oil prices higher overnight. Recovering PMI data from China today, and by default recovering energy consumption, has seen the rally continue in Asia. The price action by oil this past week has been ominous, suggesting that supplies of refined products is getting worse, and not better. The EU oil ban on Russia further complicates that picture and I am wondering how long markets can continue bottom-fishing elsewhere while ignoring oil’s price rise. Overnight, Brent crude rose by 2.05% to USD 121.65 a barrel, and today, it has rallied another 1.20% to USD 123.10. WTI rallied by 2.20% to USD 177.65 overnight, gaining another 0.80% to USD 118.55 in Asia today. Brent crude is now a hair’s breadth away from resistance at USD 123.80, after which there is no resistance on the charts until USD 131.60 a barrel. Support lies at USD 116.00 a barrel. WTI has taken out resistance at USD 116.70 a barrel, which now becomes support, followed by USD 116.00. The USD 120.00 region will provide some psychological, and possibly option-related resistance, but there is now nothing on the charts until USD 126.80 barrel. Markets will find no solace from this week’s OPEC+ production meeting, as outlined in yesterday’s note. If China is reopening, and Europe is limiting Russian oil, there is only one obvious direction from here, for too long, ignored by markets. Only a surprise Iran deal, unlikely as they are seizing tankers at the moment, or a capitulation to Venezuela’s autocratic government, could change the supply/demand dynamic. Neither would alleviate the squeeze in refined products underpinning the rally. Gold trades sideways Gold seems determined to bore traders to death after another inconclusive overnight range-trading session. It probed resistance around USD 1860.00 an ounce overnight but retreated to finish just 0.14% higher at USD 1855.80 an ounce, marking another inconclusive session. Ominously, gold has fallen in Asia at the first sign of US Dollar strength, Gold has eased by 0.13% to USD 1853.50 an ounce. ​ Gold’s price action continues to suggest caution, with the US dollar sell-off not translating to any meaningful gold strength. If global risk sentiment turns lower, gold could quickly follow. Gold has nearby support at USD 1840.00, followed by USD 1836.00 an ounce. Failure sees the possibility of a mini-capitulation by longs that could reach as far as USD 1780.00 an ounce. Gold has resistance here at USD 1862.00, then USD 1870.00, followed by USD 1886.00 an ounce, its 100-day moving average. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
XAUUSD: What Do We Learn From Ichimoku Cloud Indicator Analysis Of Gold Price?

Is It Possible For Gold Price (XAU/USD) To Reach $1900? How Can Interest Rates And US Dollar (USD) Interrupt Gold Strengthening? | Oanda

Craig Erlam Craig Erlam 02.06.2022 08:59
Or a failed recovery? Gold fell heavily between the middle of April and May but then started to recover as interest rate expectations were pared back. How sustainable is the recovery? Gold - Gathering momentum? - MarketPulseMarketPulse It ran into trouble quite quickly around $1,870, at which point it struggled to gather any upward momentum. But after falling back towards $1,830 today, that may have changed. A rotation off the 50% Fibonacci retracement level – mid-May lows to late-May highs – which coincides with the 200/233-day SMA band may signal a resumption of the recovery that sees it test last week’s highs. If so, then perhaps gold could enjoy more of a recovery and a run at $1,900. But that may depend on how the broader markets behave and whether yields and the dollar avoid rising much further. A failure at $1,850 or $1,870 could spell trouble for the yellow metal, especially if accompanied by higher interest rate expectations and a stronger dollar. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Eyes On Iran Nuclear Deal: Oil Case. Gold Price Is Swinging

OPEC+ Leaves Investors And Markets Confused As Russia May Not Hit its Crude Oil Output Quota. Gold Price (XAU/USD) Interacts With Fed's Rate Hike Fears | Oanda

Ed Moya Ed Moya 01.06.2022 23:00
Oil Oil prices are rallying as the crude fundamentals continue to turn bullish, while uncertainty persists with how OPEC+ will handle Russia’s output quota and if the group will be able to deliver more output in the coming months. Economic data from the US shows the economy is holding up, which supports the idea that crude demand should improve and that this will be a strong driving season. OPEC+ needs to figure out how they will handle Russia’s crude output quota, but regardless the group as a whole has limited spare capacity.  This oil market will remain tight until demand destruction becomes an issue, but right now that doesn’t seem like that will happen anytime soon.  Oil rallies, gold turns positive - MarketPulseMarketPulse Gold rises on market jitters Gold is getting its groove back on safe-haven flows as investor worries return that the Fed may not be easing up its rate-hiking campaign anytime soon. Wage pressures in the US are not easing and that should keep inflationary pressures going for a few more months. The war in Ukraine could see an escalation after the US has signaled they will give Ukraine advanced rocket systems.  Gold could thrive as safe-haven flows will only grow as geopolitical risks remain elevated and over fears of aggressive global central bank tightening. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Crucial Upcoming PMI Data and High-Stake Meetings Shape China's Economic Landscape

How Have (BTC/USD) Bitcoin Price, Gold Price And Stocks Been Doing This Week? | BeInCrypto

BeInCrypto (BeIn News Academy Ltd), we're writing about crypto. BeInCrypto (BeIn News Academy Ltd), we're writing about crypto. 03.06.2022 13:07
Be[in]Crypto brings you an overview of this week’s price movements for bitcoin (BTC), gold, and our stock pick, GameStop.     BTC While an improvement over the prior two weeks, bitcoin has been struggling to maintain a $30,000 baseline. Trading just below $29,000 on May 19, BTC rose above $30,000 the next day, but swiftly returned below. Over the next two days it trickled upward, before accelerating up to $30,000 by May 24. Hitting resistance again, it dropped back down to $29,000 and failed to recover over the next few days, eventually slipping further down to $28,250 by May 27. While it rose a bit over the following days, BTC spiked on May 30, reaching $32,000 by May 31. Once again, BTC plummeted from there to $29,000 by June 2 and is now trading around $30,000.     Bitcoin’s rise to $32,000 was a result of markets responding to the relaxation of COVID-19 restrictions in China, in addition to the possibility that the Federal Reserve could loosen its hawkish stance later this year. “Bitcoin’s price action today is not entirely surprising,” said Joe DiPasquale, the CEO of crypto fund manager BitBull. “Not only is it facing pressure from traditional markets, it has also been struggling to breach the resistance zone between $31K-$32K, resulting in a breakdown from the range it set over the weekend.” GOLD The gold price has fared well over the past two weeks. Trading around $1,810 on May 19, it then shot up to $1,845 later that day, before rising even further to $1,865 by May 23. While sinking a bit from there, gold rose a bit higher by May 24 before sinking a bit back to $1,845. Over the next few days, gold reached $1,855, then dropped down further to $1,830 by June 1. However, over the past day, it has surged and is now trading around $1,865.  Gold prices rose yesterday bolstered by a dip in the dollar and data showing U.S. private payrolls rose less than expected last month. “[The job data] is really raising the recession concerns that have been brewing in the market and supporting gold,” said Ryan McKay, commodity strategist at TD Securities. According to ADP National Employment Report data, private payrolls rose by 128,000 jobs last month against a forecast for an increase of 300,000 jobs. GME GameStop shares have trickled down over the past two month, but have surged over the past week. At the beginning of April, GME dropped from $190, and had fallen to $140 by April 18. Despite a brief recovery, it continued to trickle down, hitting $115 by May 1. While maintaining around $120 the next few days, it continued to fall and hit $80 by May 11. It then shot up the next day to nearly $110 and traded between $100 and $90 until May 25. From there it shot up to nearly $150 on May 26, and while it has fallen a bit since then, it is currently trading around $135. During its latest financial results, GameStop reported sales of $1.378 billion, up from $1.277 billion during the same period last year. The company said that new and expanded brand relationships have helped boost sales, in what is likely a reference to its crypto efforts. CEO Matt Furlong said in the earnings call: “We firmly believe that digital assets are core to the future of gaming,” giving a clear indication that the company is going to double down on its digital assets strategy. GameStop will release its highly anticipated NFT marketplace in the second quarter of the year, which should inject a lot of life into the company’s business, having seen a resurgence since last year’s stock incident.  Disclaimer All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.   Source: BeInCrypto
Why Do Central Banks Buy Gold...? Price Of Gold (XAUUSD) Decreased On Friday | FxPro

Why Do Central Banks Buy Gold...? Price Of Gold (XAUUSD) Decreased On Friday | FxPro

Alex Kuptsikevich Alex Kuptsikevich 06.06.2022 12:12
Gold lost 1% to $1850 on Friday, declining under pressure from the overall pull from risky assets. For short-term traders, it is also telling that this decline mostly erased the gains of the first few days of the month and prevented the rebound from turning into new upside momentum. Gold came up against the resistance of sellers on Friday, as it did a fortnight ago, trying to move above the 61.8% Fibonacci retracement line from the highs of April near $2000 to the lows of May, below $1790. The following potentially significant level is the $1840 area, where the 200-day moving average passes. In early June, the buyers prevented gold from getting below that line, but it makes sense to expect that the bears have entirely abandoned the idea of breaking below it. It is also interesting that an increase in central bank buying accompanied the fall in the price of gold in April. For April, new data from the World Gold Council showed net purchases by global central banks of 19.4 tonnes after net sales in March. Central bank purchases should not be taken as a bullish signal for the market as regulators often acted as market stabilisers by selling in the early 2000s during one of the strongest rallies. Uzbekistan (+9.4t), Turkey (+5.6t) and Kazakhstan (+5.3t) were the most substantial buyers of gold. Sales were more modest, with Germany (-0.9t) and Mexico and the Czech Republic (-0.1t each) contributing the most. In our view, net purchases of gold by EMs and sales by developed economies indicate a relatively benign financial environment in the global economy. Otherwise, EMs were forced to sell gold to protect their currencies from declines.
A Better Situation In China May Prevent A Much Sharper Fall In Oil Prices

Oil steady, gold range-trades | Oanda

Jeffrey Halley Jeffrey Halley 07.06.2022 12:33
Oil is steady in Asia Oil’s intraday gains overnight were pared back in New York as US yields and the US dollar climbed, leaving both Brent crude and WTI slightly lower for the session. Brent crude finished 1.05% lower at USD 119.95 a barrel, and WTI finished 1.10% lower at USD 119.00 a barrel. Asian markets are very much in wait-and-see mode, with Brent crude slightly higher at USD 120.15 a barrel and WTI edging higher to USD 119.25 a barrel. Whichever way you look at it though, both Brent and WTI prices are nearing post-Ukraine highs, stripping at the days of the initial hostilities themselves. Returning Venezuelan and Libyan production to Europe and North America, should it occur, will not be material enough in the shorter term to force prices lower. Refining margins globally suggest that demand for petrol and diesel remain in heavy demand, with the refining logjam in refined products backstopping crude prices. Additionally, the damp squib OPEC+ meeting outcome, with some production bones thrown to some angry dogs, and a potential recovery in demand from mainland China has got on top of omicron, provides yet more reasons to believe that physical demand will keep prices elevated. Brent crude has resistance at USD 122.00, and USD 124.00, with support distant at USD 116.00 and USD 112.50 a barrel. WTI has resistance at USD 121.00, with distant support at USD 115.00 and USD 111.25 a barrel. Gold’s flip-flop ranging continues Gold continues to bore traders to death as range trading and reversals by a thousand cuts continue. Overnight, a stronger US dollar and firmer US yields pushed gold 0.50% lower to USD 1842.00 an ounce, where it remains in yet another moribund Asian session. The chart picture shows gold is now eroding resistance at USD 1870.00, touching USD 1874.00 an ounce on Friday. But overall, resistance at USD 1870.00 remains intact, followed by the 100-DMA at USD 1889.00, and then USD 1900.00. Support at USD 1844.00 has given way, opening further falls to USD 1830.00  and then USD 1780.00 an ounce. I do not discount a disorderly retreat if the latter fails. Gold remains at the mercy of intraday directional moves by the US dollar and US yields. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Oil extends decline, gold edges lower

Oil clutching to US 120, gold drifting | Oanda

Craig Erlam Craig Erlam 07.06.2022 18:39
Oil struggling to hold above USD 120 Oil is continuing to struggle around USD 120 on Tuesday, with Brent and WTI very slightly lower. We’ve seen USD 120 broken on a few occasions over the last week but each time it’s been quickly repelled in a sign of momentum starting to run a little thin. The fundamentals remain bullish for oil prices as China continues to reopen and the OPEC+ “production hike” does little to alleviate the tightness in the market. Still, it’s been a very strong run over the last month, with the price up more than 20% from the May lows. We could potentially see some profit-taking in the short-term but it’s hard to imagine it being too severe, barring significant growth downgrades or a surge in Covid cases in China. Gold consolidation continues As has so often been the case in recent weeks, gold is continuing to fluctuate around USD 1,850 today and showing little sign of a burst in either direction. It struggled once more around USD 1,870 on Friday, reinforcing it as a key area of resistance to the upside, while USD 1,830 continues to be the first line of support below. We may have to wait for the inflation data at the end of the week for an interesting move in either direction. For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/ This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Oil clutching to US 120, gold drifting - MarketPulseMarketPulse
Is This The End Of A Winning Streak/Bullish Trend Of Gold?

Trading Signal for Gold (XAU/USD) on June 7-8, 2022: buy above $1,842 (21 SMA - descending wedge)

InstaForex Analysis InstaForex Analysis 07.06.2022 19:23
Relevance up to 16:00 2022-06-10 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.   Gold (XAU/USD) is rebounding from the daily low at $1,833 and is now trading above the 21 SMA and below the 200 EMA on 1-hour charts. It is currently located at $1,845, making a slight correction after having found resistance at the 200 EMA around $1,850. According to the 1-hour chart, we can see the formation of a descending wedge. The breakout of this pattern could confirm the bullish movement of gold and it could reach the resistance zone of 6/8 Murray around $1,875 in the coming hours. Gold benefited as US Treasury yields have fallen during the European session and are likely to continue their decline during the American session. Additionally, the US dollar index is also showing signs of weakness which favors gold. Consolidation on the 4-hour chart and a daily close above $1,850 could mean acceleration of the bullish move, and the outlook for gold is positive as it could reach the zone of $1,865 and $1,875. Investors are concerned about the rate hike in the US because it reduces the demand for this safe-haven asset that does not generate interest or return. As long as it remains trading below 6/8 Murray, any momentum in gold will be considered a technical correction. The bearish pressure exerted below this zone could send gold lower again. In the medium term, a close above $1,875(6/8) could mean an advance in gold as it could reach the psychological level of $1,900 or even the zone of 7/8 Murray at 1,937. In the short term, our signals remain positive due to the falling wedge pattern. This technical figure should be confirmed if gold consolidates above the 200 EMA. If this happens, we could buy gold with targets at $1,869 and $1,875. The eagle indicator has reached the extreme oversold zone since June 6 which is an imminent sign of a technical correction in the next few hours, supporting our bullish strategy.   Read more: https://www.instaforex.eu/forex_analysis/279149
The Grains Sector Saw Continued Demand| Acceleration In The Sale Of Gold

Crude Oil: Both Brent And WTI Increased, Gold Prise Rose, But Still It Trades Quite Low | Oanda

Jeffrey Halley Jeffrey Halley 08.06.2022 14:03
Oil is steady in Asia Oil prices rose slightly overnight as tight refined supplies persist in the US, and industrial action in Norway and a shutting down of a Libyan oil field continued supporting prices at recent highs. Brent crude finished 0.75% higher at USD 120.75 a barrel, and WTI rose 0.30% to USD 119.75 a barrel. Asia is once again adopting a wait-and-see position, with Brent and WTI unchanged in regional trading. Oil prices remain at post-Ukraine invasion highs if you strip out the days when tanks rolled across the borders. Returning Venezuelan and Libyan production to Europe and North America, should it occur, will not be material enough in the shorter term to force prices lower. Refining margins globally suggest that demand for petrol and diesel remain in heavy demand, with the refining logjam in refined products backstopping crude prices. A reopening China is also supportive of oil prices. Brent crude has resistance at USD 122.00, and USD 124.00, with support at USD 116.00 and USD 112.50 a barrel. WTI has resistance at USD 121.00, with current support at USD 115.00 and USD 111.25 a barrel. Gold’s flip-flop ranging continues A weaker US dollar into the end of the New York session saw yet another mechanical response by gold, which rose 0.56% to USD 1852.50 an ounce in another snooze-fest session. In Asia, some US Dollar strength had sent it 0.25% lower to USD 1848.00 an ounce in an automatic response. Until we get a material move one way or the other by the greenback, gold’s range trading looks set to persist. Gold has resistance at USD 1870.00, followed by the 100-DMA at USD 1889.00, and then USD 1900.00. Support is at USD 1837, USD 1830.00, and then USD 1780.00 an ounce. I do not discount a disorderly retreat if the latter fails. The wider USD 1830.00 to USD 1870.00 range seems set to continue until Friday. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Oil edges higher, gold directionless - MarketPulseMarketPulse
Gold Stocks Have Performed Very Well Under Pressure

(XAU/USD) Has Gold Price Changed? Trading plan for Gold on June 17, 2022 | InstaForex

InstaForex Analysis InstaForex Analysis 17.06.2022 14:23
Relevance up to 13:00 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. Technical outlook: Gold prices rose through $1857 highs before finding resistance late during the New York Session on Thursday. The yellow metal is seen to be trading around the $1846 mark at this point in writing and is expected to find support close to $1830 intraday. Bulls will be poised to resume higher thereafter and hold prices above $1805 interim lows. Gold prices are broadly within a counter-trend rally since the $1,786 low registered in May 2022. The precious metal has successfully terminated the first and second waves around $1,880 and $1,805 respectively. If the above structure holds well, prices are on their way towards $1920 going forward. Gold prices might encounter intraday support around the $1,830 mark, in line with the Fibonacci 0.618 retracement of its lower degree upswing between $1,815 and $1,857. Notably, the metal is working on a larger degree downswing between $1,998 and $1,786 and the Fibonacci 0.618 retracement is seen towards $1,920 as well. There is a high probability of a bearish turn thereafter. Trading plan: Potential rally through $1920 against $1781 Good luck!   Read more: https://www.instaforex.eu/forex_analysis/280627
Forex: XAU/USD Is Rising For The 3rd Day In A Row!

Crude Oil steady around US 120, Price Of Gold under pressure | Oanda

Craig Erlam Craig Erlam 17.06.2022 16:09
Oil steady as European gas prices surge Oil prices are relatively steady at the end of the week, just shy of USD 120. Despite the correction over the last week or so, the market remains extremely tight and the price risks still remain tilted to the upside. With OPEC+ now reportedly missing output targets by 2.7 million barrels per day and setting unachievable targets for the summer, that gap will widen. The pressure in the market isn’t going to ease any time soon. Gas prices in Europe on the other hand have been surging as Russia once again appears to weaponise supplies to Germany and Italy, which remain heavily reliant on it. Both are complying with the rouble payment demands and yet have seen their flows hit heavily, with Gazprom blaming repairs as being behind the drop-off. It comes as both countries attempt to fill up reserves ahead of the winter which some suggest is no coincidence. Gold Price (XAUUSD) struggles after a brief recovery Gold has had a good run over the last couple of days as central banks have played catchup with the Fed, lifting their currencies and weakening the dollar in the process. US yields easing off their highs have also contributed to the greenback paring gains. The dollar remains king though and we’re very much seeing that today with it trading almost 1% higher which has forced gold back below USD 1,850. No doubt volatility is going nowhere with central banks now in panic mode and every piece of data being poured over for further signs of stubborn inflation and economic vulnerability. For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/ This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Oil steady around US 120, gold under pressure - MarketPulseMarketPulse
Inflation In Philippines Hit 6.1%, Its Pace Is Record-Breaking. What Are The Predictions Of BSP (Bangko Sentral ng Pilipinas) Monetary Policy?

Gold Price Or FX - What's More Volatile Now? What's Ahead EURCHF And USDCHF After SNB Decision? Price Of Crude Oil Dropped. Awaiting Powell's (Fed) Testimony | Saxo Bank

Saxo Bank Saxo Bank 20.06.2022 10:26
Summary:  Equity markets tried to end last week’s grueling sell-off with a positive flourish on Friday, as oil prices dropped by the most in several weeks and firmness in safe haven bond markets kept bond yields at the low end of the week’s range. But are those developments down to investor concern that a recession is incoming? The week ahead features semi-annual testimony from Fed Chair Powell before Congress and global preliminary June PMI surveys.   What is our trading focus? Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) Despite extreme volatility in cryptocurrencies and another “stablecoin (USDD)” losing its peg to the USD, US equities futures are starting the week on mild positive note. S&P 500 futures are trading slightly higher at the 3,690 level and will likely try to test the opening price from last Wednesday’s session at around the 3,743 level if risk sentiment remains positive today. There are no important macro events today so trading will be light, also due to today being a holiday in the US so cash equity markets are closed, and potentially take their lead from cryptocurrencies, although we expect the correlation to begin to decline with cryptocurrencies reducing itself to a small and isolated pocket of the market again. Hong Kong’s Hang Seng and China’s CSI300 Hong Kong’s Hang Seng (HSI.I) and China’s CSI300 (000300.I) were fluctuating between modest gains and losses. Chinese property names surged with COLI (00688) and CR Land (01109) rising 9% and 8% respectively. According to Beke Research, secondary market home sales volume in China’s top 50 cities rose more than 20% in the first 10 days of June from last month. June Emerging Industries PMI came at 52.5, 3.6pp higher than May. With COVID outbreak, Macao gaming stocks fell. China’s 1-year and 5-year Loan Prime Rate remain unchanged. EURCHF and USDCHF The Swiss franc was in for a positive shock last week after a surprise hike – and a large 50-basis point one – from the Swiss National Bank altered the landscape for CHF traders, suggesting the central bank is less concerned with always lagging the ECB in its policy move and a moderating of concerns about the CHF level versus EUR, as a strong franc is potentially one tool that can help ease inflationary pressures. EURCHF reset lower to sub-1.0200 levels after trading between 1.04-1.05 before last week’s meeting. Focus now is on the parity level that was briefly touched in the wake of the Russian invasion of Ukraine. USDCHF is another focus, trading below 0.9700 after trading as high as parity before the decision. The 0.9500-0.9550 area is the next technical focus area there. USDJPY and JPY pairs A very challenging backdrop here for JPY traders, as the Bank of Japan’s insistence on maintaining its negative 0.10% policy rate and more importantly, the yield-curve-control policy by which it caps 10-year Japanese government bond yields at 0.25%, was seen as very JPY negative last week in the wake of a US Fed hiking the most since 1994 and the SNB executing a surprise large hike etc. At the same time, global bond markets rallied hard to close the week, particularly in the dominant US treasury market, with oil markets in a nosedive on Friday, both supportive developments for the Japanese yen. Focus for USDJPY traders remains on the 135.00+ cycle top, which may hold as long as US longer treasury yields are capped below cycle highs. To the downside, last week’s low near 131.50 was close to the prior major pivot high of 131.35. Crude oil Crude oil (OILUKAUG22 & OILUSJUL22) plunged almost 7% on Friday after growth worries signaled by the FOMC aggressive action to bring down inflation spread from the stock market and industrial metals to fortress oil and fuel. A sector which up until now has seen limited contagion risks given the tight supply outlook amid Russian sanction, OPEC+ producers struggling to raise production and lack of refinery capacity. Speculators turned net sellers of WTI in the week to June 14 following several failed attempts to break higher, potentially a signal we have entered another period of consolidation, but still with the underlying risk of eventually moving higher.  Gold Gold (XAUUSD) remains rangebound following a week of high drama that saw dramatic yield spikes being offset by growing unease about the economic outlook with recession worries on the rise as central banks step up their efforts to curb inflation. Focus on the dollar and Fed Chair Powell’s semi-annual testimony before the Senate Banking Committee on Wednesday (see below). Speculators cut bullish futures to a nine-month low ahead of last week’s FOMC rate hike announcement while total bullion-backed ETF holdings on Friday dropped to three months low, both highlighting the current uncertainty about the short-term direction. Copper HG Copper (COPPERUSSEP22) has returned to the key $4/lb support area after falling around 10% during the past two weeks on China and global growth worries. Iron ore (SCON2) traded in Singapore and metallurgical coal in Shanghai, both key inputs to the production of steel have lost around 20% during the same period. China’s slumping property market and the country’s inability to put the coronavirus behind it remain a major headwind, and one that inadvertently is supporting the efforts to curb inflation through lower input costs. Copper, rangebound for more than a year, is in the short-term at risk of breaking lower with the next level of support at $3.86 before $3.50. US Treasuries US treasuries (TLT, IEF) remained firm on Friday, keeping yields at the lower end of the week’s range and near the important tipping point around 3.20% for the 10-year Treasury yield benchmark, which was the prior yield high on the way up. US data surprises have tilted increasingly negative of late and a huge sell-off in crude oil on Friday may drive slightly lower inflation expectations if the lower prices stick. US Fed Chair Powell is up this week with semi-annual testimony before Senate and House committees on Wednesday and Thursday, respectively. Crypto rout extends with Bitcoin The largest and one of the more stable crypto assets, plunging below the critical 20k level over the weekend after it slid 15% on Saturday. This signals not just further stress in the crypto space but also broader stress in financial markets as liquidity conditions tighten. What is going on? French President Macron loses absolute majority in Parliament After the second round of parliamentary elections completed yesterday, President Macron’s centrist coalition will only win about 245 of of the 277 seats, with a leftist coalition headed by Jean-Luc Melenchon taking 131, and Marine Le Pen’s right populist National Rally at 89 seats.  The euro is taking the news in stride, but this result will hamper President Macron’s reform agenda, including his intent to raise the retirement age and reform the pension system. The tug of war between inflation and recession means room for policy error With the central banks bucking up on the tightening bandwagon last week, we are seeing a more serious fight against inflation which is set to rise further above 9% levels in the UK this week and remains in the 8% range for the US. However, this historic tightening pace following the Fed’s 75bps rate hike last week has meant further fears of an economic slowdown. A slew of weak US data reported last week also aggravated those concerns. Markets will continue to be choppy as investors weigh inflation/recession concerns, but the long-term bear trend is here to stay. The abrupt policy turn also means an increasing scope of policy error. Keeping an eye on corporate credit markets... ... after at least one measure of US high yield corporate spreads rose to a new cycle high last week above 500 basis points above US Treasury yields, above the mid-May high of 482 basis points and up over 100 basis points from the lows in early June. The two most widely tracked high yield ETF’s, HYG and JNK, closed sharply lower last week and are down around 15% (less in total return terms) from their late 2021 highs. What are we watching next? US Fed Chair Powell semi-annual testimony this week before House and Senate committees The Fed Chair will be in the hot seat this week in the required semi-annual testimony before Congress, where politicians on the committees often take a chance to grandstand on their own political positions and observations, but after several months of decades-high inflation and record gasoline prices, will this week’s testimony show that the political pressure on the Fed is mounting? The market will also watch for any new comments from the Fed Chair, although we are just a few days removed from the FOMC press conference. U.S. housing data are out on Tuesday The housing market is in a vulnerable position. Prices are up almost 40 % since the outbreak, mostly reflecting stimulus-fueled demand. But with high inflation across the board pushing consumer confidence downward and mortgage rates surging following the U.S. Federal Reserve’s tightening cycle, the risks of hard landing are tilted on the upside. Over the past few weeks, several large real estate firms such as Redfin Corporation have warned against the risk of slowdown. Expect a drop in May’s existing home sales and perhaps a new plunge in the number of new home sales after disappointing data in April (minus 16.6 %). The U.S. housing market is certainly the most vulnerable segment of the U.S. economy at the moment. It will be key to monitor the upcoming data in order to assess whether there is a material risk of recession or not. May UK CPI is out on Wednesday This will be painful. Expect a new increase to 9.1 % year-over-year in May against 9.0 % in April. Last week, the Bank of England (BoE) hiked rates by 25 basis points. This was expected. But political pressure is increasing on the central bank to do more while other developed market central banks have embraced a more hawkish tone (U.S. Federal Reserve, Reserve Bank of Australia, National Bank of Hungary, for instance). If inflation continues to rise (which is our baseline), we would not be surprised if we see the BoE go for an inter-meeting 25 basis points hike before the 4 August meet. Other central banks have done it recently, such as the National Bank of Hungary which decided a surprise 50 basis point hike to support the HUF last week. This only eased temporarily downward pressure on HUF. Earnings Watch This week’s earnings calendar is light but there are three important earnings releases to watch and those are Lennar, FedEx, and Accenture providing insights into the US housing market, logistics, and business spending dynamics (if you believe management consultancy is part of business spending). Today: Kanzhun Tuesday: Lennar Thursday: FedEx, Accenture, Darden Restaurants, FactSet Friday: Carnival, China Gas, CarMax Economic calendar highlights for today (times GMT) 0800 – Switzerland Weekly Sight Deposits 0800 – UK BoE’s Haskel to speak 1300 – ECB President Lagarde to speak 1500 – ECB President Lagarde to speak 1645 – US Fed’s Bullard to speak 1930 – ECB Chief Economist Lane to speak 0000 – Australia RBA Governor Lowe to speak 0130 – Australia RBA Meeting Minutes Follow SaxoStrats on the daily Saxo Markets Call on your favorite podcast app: Apple  Spotify PodBean Sticher Source: Financial Markets Today: Quick Take – June 20, 2022 | Saxo Group (home.saxo)
Commodities: EU Members Manage To Agree On Price Caps For Russian Oil

Oil moves higher, gold range-trades | Oanda

Jeffrey Halley Jeffrey Halley 21.06.2022 12:17
Oil prices start reversing the Friday slump As I outlined above, oil futures have started reversing the Friday price slump as speculative capitulation collides with the reality of tight energy markets in the real world. Brent crude held USD 112.00 overnight, finishing 0.92% higher at USD 114.05 a barrel. It has added another 0.85% to USD 115.15 a barrel in Asian trading today. WTI held USD 108.50 overnight, finishing 0.20% higher at USD 110.05 a barrel. It has jumped 1.20% higher to USD 111.50 a barrel in Asian trading.   Friday’s falls have bought my six-month support lines back into focus. On Brent crude, that is at USD 107.00 a barrel today, just below its 100-day moving average (DMA) at USD 107.95. Ahead of this, it has support at USD 112.00, with resistance at USD 116.00 a barrel. WTI’s six-month support line is at USD 106.25 a barrel, just ahead of its 100-DMA at 105.25. It has interim support at USD 108.50, and resistance at USD 112.50 a barrel.   Of the two, WTI looks the more vulnerable, having fallen further and closed closer to its multi-month support zone. If the US cuts federal fuel taxes this week, or US housing data is very soft, that could be enough to tip the scales lower. It is hard to see either contract moving lower than USD 100.00 a barrel given the state of the physical market. From a technical perspective, I would like to see one of either contract tracing out a couple of daily closes below the longer-term support lines and the 100-DMAs, before reassessing my longer-term bullish outlook.   Gold range continues It was another wax-on, wax-off day for gold overnight thanks to US markets being closed. It edged 0.11% lower to USD 1839.00 an ounce. In Asia, it has gained slightly by 0.12% to USD 1840.60 an ounce as comatose trading conditions continue.   Despite the noise of the past week, it remains anchored in the middle of its one-month range. The overnight price action shows that the inverse correlation to the US dollar is as strong as ever.   Gold has resistance at USD 1860.00 and USD 1880.00, the latter appearing an insurmountable obstacle for now. Support is at USD 1805.00 and then USD 1780.00 an ounce. Failure of the latter sets in motion a much deeper correction, while I would need to see a couple of daily closes above USD 1900.00 to get excited about the upside. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Oil moves higher, gold range-trades - MarketPulseMarketPulse
Investing In Gold? XAUUSD - Can Gold Price Reach $1700!? | FxPro

Investing In Gold? XAUUSD - Can Gold Price Reach $1700!? | FxPro

Alex Kuptsikevich Alex Kuptsikevich 21.06.2022 11:45
Despite attempts at rebounding equity markets, moderate pressure on gold has persisted for the third consecutive trading session. This pressure is directly linked to rising long-term bond yields on US debt and several other developed countries. Bonds and gold work like communicating vessels: rising real long-term yields draw capital to the debt markets away from gold. Over the last two years, the inverse correlation between gold and US 10-year Treasury yields has been very strong: gold prices peaked in August 2020, while yields rose from 0.5%. Last week, when the 10-year Treasury yield was rising temporarily to 3.5%, it tested the $1800 area. However, there are several essential points to understand in this correlation. First, the 10-year Treasury yields touched 11-year highs last week, while gold has retreated only to the levels last seen at the start of the year. In other words, an active capital outflow from gold only occurs when yields decline sharply, whereas the long-term trend favours the shiny metal. This correlation can easily be explained by inflation, which eats into the purchasing power of money in the long term. Secondly, 10-year yields are not so much influenced by short-term Fed interest rates as economic growth forecasts. Increased chances of a recession in the foreseeable future have dampened long-term yields. In addition, there are signs that the upward movement in UST yields was too fast, setting up a corrective pullback in the near term. In our opinion, the potential danger for gold is a further tightening of the Fed’s tone, i.e. hints of new steps of a 75-point rate hike and a willingness to keep rates above inflation. But so far, we have seen a significant outperformance of inflation over key rates, and comments from FOMC members indicate a willingness to stop with a tightening in the 3.5-4.0% area, with no attempt to ride out inflation and a reversal to a rate cut as early as 2024. Such outlooks are keeping long-term bond yields in check and, at the same time fuelling interest in a strategy of buying gold during intense downturns. Locally, creeping upward bond yields are working for sellers of gold. This also has a bearish signal in the form of consolidation below the 200-day moving average. However, gold’s resilience drew attention when markets overestimated expectations of a rate hike from 50 to 75 points and multiple buying gains on dips under the 200-day moving average since December last year.
Commodities: EU Members Manage To Agree On Price Caps For Russian Oil

Crude Oil prices recover, gold price stuck in range | Oanda

Craig Erlam Craig Erlam 21.06.2022 16:21
Oil risks remain tilted to the upside Oil prices are around 1% higher, continuing to recover from Friday’s sharp sell-off. The oil market remains extremely tight but it seems the rising threat of recession created a compelling argument for it to correct lower last week. There’s no doubt that a recession could help rebalance the market and pull prices lower but for many, that is not the base case. So any corrections are still likely to quickly see a flurry of buyers, as we’re now seeing. In the same way that Chinese lockdowns slowed rallies in recent months, the increasing threat of recession could do similar over the summer. That said, the risks remain tilted to the upside as supply simply can’t keep up with demand. Gold could be rangebound for a while We’re still seeing plenty of indecision and choppiness in gold. It struggled to build on the momentum of last week’s surge and is now on course for a third day in the red. That’s not a particularly bearish signal, more a reflection of how the week has started in the markets. The absence of the US makes it hard to read too much into the moves until now. The key level to the downside remains USD 1,800, with USD 1,870 the big test above. It wouldn’t be a surprise to see the yellow metal fluctuate between these two levels for a while longer yet.   For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/ This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Oil prices recover, gold stuck in range - MarketPulseMarketPulse
Forex: XAU/USD Is Rising For The 3rd Day In A Row!

Price of Gold (XAU/USD) to exit its range soon?

InstaForex Analysis InstaForex Analysis 21.06.2022 22:55
Relevance up to 18:00 2022-06-22 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. The price of gold continues to move sideways in the short term. It was trading at 1,835 at the time of writing. XAU/USD is trapped in a narrow range, so we'll have to wait for a valid breakout from this pattern before taking action. Fundamentally, the Canadian retail sales data brought some action on the yellow metal today. The Retail Sales indicator reported a 0.9% growth versus 0.8% expected, while the Core Retail Sales surged by 1.3% compared to 0.5% forecasts. Also, the US Existing Home Sales came in at 5.41M above 5.40M expected. Tomorrow, the fundamentals could be decisive. The UK and Canadian inflation figures could force the XAU/USD to escape from the current pattern. XAU/USD Moves Sideways!     You knew from my previous analysis that XAU/USD dropped within a down channel. In the short term, it's trapped between 1,844 and 1,832. As you can see on the H1 chart, the rate registered only a false breakout through the downtrend line and above the weekly pivot point of 1,841 signaling strong downside pressure. Now, it challenges the uptrend line which stands as a dynamic support. Escaping from the current range could bring new trading signals. XAU/USD Forecast! Gold could resume its sell-off if it stays under the flag's resistance and if it makes a new lower low, if it drops and closes below 1,830. Staying above the uptrend line and making a valid breakout above the 1,844 could bring new long opportunities.   Read more: https://www.instaforex.eu/forex_analysis/281125
Gold Stocks Have Performed Very Well Under Pressure

Gold fights heroically against adverse conditions

InstaForex Analysis InstaForex Analysis 22.06.2022 15:55
Relevance up to 12:00 2022-06-27 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. Respect! This word can express admiration for gold, which, in extremely unfavorable conditions for itself, shows amazing resilience. When the Fed decides to tighten monetary policy at the most aggressive pace in 28 years, the US Treasury market is off to its worst start since the 1970s, and the US dollar is comfortably at 20-year highs, the precious metal should be worth much less. Nevertheless, the "bulls" find the strength to resist the headwind. Over the past 12 months, the USD index has risen by almost 14% due to strong demand for safe-haven assets, the strength of the US economy, and the intention of the Fed to aggressively tighten monetary policy. According to the latest FOMC forecasts, the federal funds rate will rise to 3.4% by the end of 2022. Reuters experts expect to see it at around 3.5%. This implies a 75 bps increase in borrowing costs at least at one of the meetings of the Committee before the end of the current year. Experts polled by Reuters believe that a big step will be taken as early as July. If we add to the high speed of monetary restriction the transition of US stock indices into bearish territory and the rapid rally in 10-year Treasury yields towards 3.5%, it becomes clear why the dollar feels like a king in Forex. Gold is quoted in US currency, the growth of the latter, as a rule, leads to a fall in its value. Forex currency dynamics     Rumors are growing in the market that the US dollar is being used by investors as a tool for hedging stagflationary risks. It is bought in the absence of other alternatives. Only the avoidance of a recession by the world economy and the cessation of the armed conflict in Ukraine can undermine the power of the USD index. In my opinion, there is still an alternative to the US dollar as a means of insuring the risks of a combination of slow economic growth and high inflation. And it's gold. That is why the precious metal jumped after the release of data on US consumer prices for May. And it remains stable against the background of zero growth in US GDP in the second quarter expected by the leading indicator from the Atlanta Fed. Stagflation is a true friend not only to the dollar, but also to XAUUSD. Meanwhile, a significant event took place on the physical gold market: for the first time since February, Switzerland bought precious metals from Russia in the amount of 3 tons for processing. Dynamics of purchases of Russian gold by Switzerland     If we draw analogies with oil, then the news could be viewed as a pullback in the process of ousting Russia from the market. But the role of the Russian Federation in the gold market is negligible compared to oil. Thus, 3 tons purchased by Switzerland is only 2% of the total precious metal imports. Gold, Daily chart     Technically, the Broadening Wedge pattern continues to materialize on the gold daily chart. Falling below the lower limit of the fair value range of $1825–1861 per ounce is a reason for selling.   Read more: https://www.instaforex.eu/forex_analysis/314205
The Gold Rally Is Continuing To Stall, This Could Be A Good Year For Crude Oil

Commodities: Crude Oil Price Rallies, Gold Price (XAUUSD) Steady | Oanda

Ed Moya Ed Moya 28.06.2022 16:26
Oil rises as China eases Covid rules Crude prices rallied after China reduced the quarantine time for inbound visitors and as Beijing and Shanghai declared zero COVID cases for the first time in months. ​ China is showing they realize they can’t keep their strict COVID controls. Earlier, Chinese authorities triggered some alarm after noting that the zero-COVID policy could be in place for the next five years. ​ The crude demand outlook is getting a major boost after China cut the mandatory isolation time in half to seven days. ​ The easing of China’s quarantine times could support the idea that Beijing might be getting closer to pivoting away from its zero-COVID policy, but that shift probably can’t happen till closer to the end of the year. Earlier oil edged higher over expectations Libya would not be able reliably export crude as protests spread and as risk appetite returned to Wall Street. The supply side of the oil equation should remain supportive for prices even if OPEC+ sees the Saudis deliver a little more crude to help cover the shortfall from Nigeria and Angola. ​ President Biden’s July trip to Saudi Arabia is mostly for political theater and won’t really lead to a meaningful increase beyond the planned OPEC+ boost of 648K b/d of supply in July and August. ​Gold Gold is struggling for direction today as risk appetite returns to Wall Street as global bond yields rise. ​ Fixed income has been under pressure after ECB’s Lagarde affirmed they are poised to raise rates by 25 bps in July while they can kick off their new bond-purchasing operation. The G7 actions against Russia aren’t hard hitting as they won’t see involvement from China. Gold seems like it will struggle until the peak inflation question is answered. If Treasury yields can retest the earlier highs seen this month, gold might be vulnerable to one last test sub-USD 1800 before the bullish bets return. ​ This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Oil rallies, gold steady - MarketPulseMarketPulse
Oil extends decline, gold edges lower

Crude Oil's Reaction To The US Inflation, Gold Demand Assumption

Craig Erlam Craig Erlam 13.07.2022 21:34
Crude slides as recession risks build The US inflation data caused shockwaves throughout financial markets, with oil also sliding on the back of the release. A recession is now the primary bear case for crude given the tightness in the market and it’s clear here as much as anywhere how serious the economic risk is being taken. Both Brent and WTI are now back below USD 100, down around 20% over the last month, and they may well remain below there which would have been inconceivable in mid-June. Central banks are in panic-tightening mode and the inflation data isn’t easing up. Throw in more Chinese Covid restrictions and the market will start to look far more balanced, just not in the way anyone wanted. Will gold demand soon return? Gold has recovered the post-CPI release losses after threatening at one stage to break below USD 1,700. While this may come as a relief to some, it may not last considering the moves we’ve seen in interest rate expectations, yields and the dollar. The yellow metal is looking pretty vulnerable at the minute but if a recession becomes the base case, that may change. It is a safe haven after all and there may come a point where the economy buckles under the weight of inflation and interest rates and gold will increasingly find itself in demand. For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Crude slumps on inflation, gold recovers - MarketPulseMarketPulse
US Dollar Weakens as Inflation Expectations Hit 2-Year Lows; Fed's November Rate Hike Odds Remain Uncertain

Gold Reached $1725! What's The Tendency Of XAUUSD In This Part Of The Year?

Alex Kuptsikevich Alex Kuptsikevich 12.07.2022 15:37
The price of gold fell to a new nine-month low on Tuesday, at one point falling below $1725. In the region of $1720-1740, gold has been finding support in the declines of the last 15 months, and the daily charts clearly show that gold sellers have been slowing down lately. Interestingly, gold has been living its life in the last few days, experiencing a sharp drop earlier in the month, but gaining support last week. Judging by the market dynamics, the most aggressive decline of the single currency in the previous week has supported gold buying. Since March, the euro gold price has already found support on several occasions at the approach of the €1700 area, an important milestone, and the area of the high in August 2020, maintaining a substantial downside potential. It would be naive to assume that buying gold now would protect capital in the event of existential problems in the Eurozone. But this assumption is difficult to confirm with history. In 2012, gold was losing with the euro, and it only reversed upwards in the second half of the year following the recovery of the eurozone confidence. Gold has reached the 61.8% of the 2018-2020 growth wave with accumulated local oversold. In such an environment, a short-term rebound is highly likely, which would be true if the dollar also loosens its grip. However, a rebound in the coming days could prove to be a bull trap or not at all. Towards the most pessimistic scenario, seasonality and downside potential on higher timeframes is in favour. Gold rarely changes its chosen trend in March-April, but it often does so in August-September. On the weekly candlesticks, the gold is far from the oversold area, and it is easy to see that we have seen reversals on these intervals when the oversold area is touched. A potential target for the bears could be the 200-week moving average, pointing upwards and now passing through $1650.
Gold price: Oanda's analyst talks technically possible price of $2000 per ounce

Gold loses direction

InstaForex Analysis InstaForex Analysis 27.07.2022 18:42
Relevance up to 11:00 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. If the traveler goes astray, he needs a guide. This guide for gold is traditionally not inflation, not geopolitical risks, or global economic growth, but the Fed. Despite the general aversion to the precious metal, expressed in the outflow of capital from ETFs in the amount of more than 100 tons over the past four weeks and in the first speculative shorts since 2019, XAUUSD quotes managed to stabilize near the $1,725 per ounce mark. Investors are eagerly awaiting the Fed's rate verdict. Dynamics of speculative positions in gold     While the latest US macro statistics and comments by FOMC officials have virtually ruled out the possibility of raising the federal funds rate by 100 bps in July, CME derivatives give a 26% chance of such an outcome at the next meeting of the Committee. Investors are interested in what the Fed plans to do in September. Will it follow the ECB's lead into a data-driven policy, or will it continue to use direct guidance? The first option looks bad for the US dollar and good for gold. The second is fraught with new mistakes of the Central Bank but will show its determination in the fight against inflation. The derivatives market gives a 49% chance of a 50 bps rate hike in September, the probability of its increase by 75 bps is estimated at 42%, while 100 bps is at 9%. Which option will Jerome Powell choose? I believe that his team will focus on incoming statistics. In particular, several reports on the labor market and inflation in the US will see the light before the next FOMC meeting. The Fed's verdict will affect not only the dollar, but also the yield of US Treasury bonds, the dynamics of which is sensitive to gold. The fact that more than eight dozen central banks are tightening monetary policy has already reduced the size of the global negative-yielding debt market to $2.4 trillion, down 87% from the $18.4 trillion peak in December 2020. Then gold felt confident trading above $1900 an ounce. Now investors are asking themselves: why hold a non-interest-bearing precious metal in a portfolio when you can buy bonds? Negative Yield Global Debt Market Dynamics         The XAUUSD bulls have an answer to it. Since the beginning of the year, 10-year US Treasury yields have jumped 84%, reflecting the debacle of the US debt market, the S&P 500 has sunk 17%, and gold has lost just over 6% of its value. The precious metal can be perceived as a portfolio stabilization tool in a pronounced stagflationary environment. So the IMF, in its latest forecast, warned that global GDP could slow to 2.6% in 2022 and—to 2% in 2023%, while inflation in advanced economies will accelerate to 6.6%. Technically, the fall of gold below the fair value by $1,710 and the pivot point by $1,700 is a reason to sell it as part of Linda Raschke's Holy Grail strategy. It assumes the formation of shorts at the levels of the lows of the dynamic resistance test bar in the form of EMA.     Read more: https://www.instaforex.eu/forex_analysis/317318
Extra Gains Of The WTI Crude Oil Appear On The Cards

Crude Oil And Gold: Let's Have A Look At Jeffrey Halley's Commentary - 05/08/22

Jeffrey Halley Jeffrey Halley 05.08.2022 13:58
Oil prices slump overnight Although OPEC+ was a damp squib, rising recession fears saw oil prices slump once again overnight after a negative global outlook from the Bank of England policy meeting. Both Brent crude and WTI have now comprehensively broken lower through their 200 DMA’s, a negative technical development. Although Saudi Arabia continues raising prices for their crude grades to Asian and US customers in the real world, futures markets suggest this may be a last hurrah. Brent crude slumped by 3.55% to USD 93.55 a barrel overnight. WTI fell by 3.10% to USD 88.00 a barrel. In Asia, the overnight dip in prices has been irresistible to local buyers, sending Brent crude 0.75% higher to USD 94.25 and WTI 1.00% higher to USD 88.90 a barrel. Brent crude broke below its 2022 uptrend at USD 109.00 in early July, and it seems unlikely we will see USD 110.00 Brent again this year, barring Eastern European shocks. The 200-DMA at USD 98.35 is the initial resistance, followed by USD 102.50 a barrel. Support is at USD 93.55, and failure clears the road to USD 90.00 a barrel. Failure of USD 90.00 could trigger another wave of capitulation selling. WTI’s 2022 trendline failed at USD 108.35 in early July, never to be seen again. US recession fears continue to weigh on WTI prices. Resistance lies at USD 95.20 barrel, the 200-DMA, followed by USD 102.00. Support is at USD 87.50 and then USD 82.00 a barrel. As noted in earlier newsletters, the avalanche of USD 200.00 a barrel, end of the world Brent crude forecasts, proved an uncannily accurate indicator of the impending peak in oil prices. Gold rallies, did I just say that? My four days away in Bali have seen gold’s impressive recovery rally continue. Overnight gold rose an impressive 1.45% to USD 1791.50 an ounce, edging to USD 1792.00 an ounce in Asian trading. It continues to benefit from a weaker US dollar, in turn, driven by falling US bond yields, as markets continue to price in peak inflation and a US recession. Notably, gold prices based, mid-July, at critical long-term support at USD 1680.00 an ounce. The ensuing rally remains a powerful bullish technical pattern which seems to be now attracting plenty of interest. Gold should remain well supported on dips to USD 1775.00 now, with a test of USD 1800.00 imminent. ​ Gold’s technical picture suggests it will continue grinding towards the USD 1900.00 region in the coming weeks. Until such a time as bond markets decide that inflation will be stickier than anticipated and yields start to rise again. The first test of that will come in the form of the US Non-Farm Payrolls this evening. A soft US payroll number, though, will likely support gold’s upward momentum, as it is likely to result in another bout of US dollar weakness as yields fall. My last commentary closes with a bullish outlook on gold; who would have thought? And with that, dear readers, all I can say is thank you very much; you’ve been a wonderful audience. Jeff has left the building……. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Oil slides, gold rally continues - MarketPulseMarketPulse
Forex: XAU/USD Is Rising For The 3rd Day In A Row!

The Goldilocks report

Craig Erlam Craig Erlam 05.08.2022 22:06
There’s no such thing as a quiet week in the markets these days and this week has undoubtedly been no different. The jobs report was always expected to be the highlight but the Bank of England gave it a good run for its money on Thursday, hiking by the most in 27 years while putting out some pretty dire economic forecasts. It would appear we have very little to look forward to for the next couple of years here in the UK. While I believe other central banks are slowly gravitating toward the economic reality of soaring energy costs, high and widespread inflation, and rapidly rising interest rates, the BoE has very much been at the forefront of accepting the country’s fate. That’s probably as much a reflection of the fundamental shortcomings as much as anything but the latest forecasts really were especially bleak and may make some other countries, particularly across Europe, a little nervous. The US may already be in a technical recession, depending on your definition, but the economy is still in very good shape. The jobs report is expected to show that once more today, with 250,000 jobs forecast to have been added last month leaving the unemployment rate at 3.6%. The question everyone is asking though is what constitutes an ideal jobs report. That may seem a silly question, but having drifted back into a “bad news is good news” environment where more rate hikes are to be feared as they may cause a recession but a recession is ok as it means potentially fewer rate hikes, it’s no longer that straightforward. With that in mind, perhaps the goldilocks report is one in which payrolls are strong but not overly so (so in line with forecasts), unemployment remains low but wage growth moderates a little. That would certainly fit the narrative of not a real recession while a slight moderation of wage growth could help build a case for inflation indicators easing, allowing for slower hikes into the end of the year. Of course, there are many other factors at play but with oil 20% off its highs and supply chains improving, the Fed may feel that pressures are abating. Of course, a decline in the headline figure is what it ultimately wants to see and there’ll be a couple of opportunities at that before the next meeting in September. Bitcoin only gets a mild lift from the Blackrock deal There was, what has become, a rare good news headline for bitcoin on Thursday after Coinbase was chosen to provide crypto services to Blackrock’s clients. This is a big show of support for an asset class that’s had a frankly terrible year so far. But clearly, there remains strong demand for cryptos which bodes well for the future. In the near-term, it’s not provided much of a lift which is perhaps a little surprising given how much the space has craved some more positive headlines recently but perhaps that’s a sign of the environment. Bitcoin continues to trade around USD 23,000, with a break above USD 25,000 now the next big test to the upside. For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/ This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. The Goldilocks report - MarketPulseMarketPulse
Gold Stocks Have Performed Very Well Under Pressure

XAU/USD: What Is The Possible Scenario For Gold Price? How Data Shapes Potential Fed Decision?

FXStreet News FXStreet News 05.08.2022 16:25
Gold witnesses aggressive selling and tumbles to the daily low amid the post-NFP strong USD buying. The upbeat report lifts bets for a 75 bps Fed rate hike in September, which further weighs on the metal. The risk-off impulse could offer some support to the safe-haven XAU/USD and help limit further losses. Gold comes under intense selling pressure during the early North American session and plummets to a fresh daily low, around the $1,765 area in the last hour. The US dollar strengthens across the board on a stronger-than-expected employment report and turns out to be a key factor weighing heavily on the dollar-denominated gold. The headline NFP print showed that the US economy added a whopping 528K jobs in July, smashing expectations by a huge margin. Furthermore, the previous month's reading was also revised higher to 398K from the 372K, while the unemployment rate also surprisingly edged down to 3.5% from 3.6% in June. The upbeat macro data lifts market bets for a larger Fed rate hike move at the September meeting, which further contributes to driving flows away from the non-yielding yellow metal. The odds of a 75 bps hike jumped to 70% from 40% before the jobs report and triggered a sharp spike in the US Treasury bond yields. In fact, the yield on the benchmark 10-year US government bond climbs back closer to the weekly high and exerts additional downward pressure on gold. The prospects for more aggressive policy tightening by the Fed, meanwhile, tempered investors' appetite for riskier assets. This is evident from a fresh leg down in the equity markets, which could lend some support to the safe-haven gold and help limit any deeper losses, at least for the time being. Hence, any subsequent downfall is more likely to find decent support near the weekly low, around the $1,754 area, which coincides with a strong hurdle cleared last week.
Oil Could Be Ready To Pop, The Bank Of England Market Pricing Is More Mixed

XAUUSD: Gold Traders Amid Incoming Monetary Policy Decisions

Craig Erlam Craig Erlam 05.08.2022 22:08
Oil slips below USD 90 as recession fears mount Oil prices are marginally higher on Friday after spending most of the week on the decline. It hasn’t been the most bullish week of headlines for crude, whether that be all of the recession chat (most notably from the UK), the new OPEC+ deal or the EIA inventory build. The headlines have all been negative and so the price has continued to fall. WTI has broken below USD 90 to trade back at levels seen before the Russian invasion of Ukraine. Clearly, everyone is taking the threat of recession far more seriously as we’re still seeing a very tight market and producers with no capacity to change that, barring a couple. Gold eyeing USD 1,800 ahead of the jobs report It’s been another very good week for gold, despite Fed policymakers coming out in force to try and spoil the party. It seems traders are not particularly interested in being told that rates won’t start falling towards the middle of next year or could still rise by 75 basis points in September despite the shift to data dependency. I mean, considering who’s been right this past 12 months, I can hardly blame them. But gold has certainly benefited and the next challenge is USD 1,780-1,800 which is putting up quite the fight. For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/ This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Oil dips under USD 90, gold awaits NFP - MarketPulseMarketPulse
Forex: XAU/USD Is Rising For The 3rd Day In A Row!

XAUUSD: Oh No! Something Made Gold Price Unable To Climb Above $1,800!

InstaForex Analysis InstaForex Analysis 08.08.2022 11:41
Relevance up to 08:00 2022-08-10 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.   According to the latest weekly gold survey, prices cannot rise above $1,800 an ounce. Some market analysts said Friday's employment report killed hopes for gold to break the $1,800 level anytime soon.     Ahead of the latest survey results, the US Bureau of Labor Statistics said 528,000 jobs were created in July. The data far exceeded the expectations of economists, who had forecast job gains of around 250,000. The report also notes a solid increase in wages. While some analysts continue to see upside potential, many are neutral and bearish. Retail investors remain firmly optimistic about gold. Last week, 16 Wall Street analysts took part in the gold survey. Among the participants, four analysts, or 24%, were bullish in the short term. At the same time, seven analysts, or 41%, were bearish. And six analysts, or 35%, voted neutral. In online polls on Main Street, 579 votes were cast. Of these, 379 respondents, or 65%, expected gold prices to rise this week. Another 124 voters, or 21%, announced a reduction, while 76 voters, or 13%, were neutral.     Economists believe the July jobs report has changed market sentiment as investors now expect the Federal Reserve to maintain its aggressive monetary stance in September. The CME FedWatch tool shows that there is more than a 70% chance of a 75 basis point move next month. Ahead of the employment report, markets estimated the likelihood of an aggressive move at 34%. Adrian Day, president of Adrian Day Asset Management, has a neutral view of gold prices during the week. Because the latest employment data will make gold investors more cautious. However, he added that he remains an optimist in the long term. Frank McGhee, precious metals dealer at Alliance Financial, is bearish as the precious metal can no longer fight the Fed. However, some analysts remain optimistic about the precious metal, noting that prices remain supportive. Jim Wyckoff said there is still technical bullish momentum in the market, which could lead to higher gold prices this week.   Read more: https://www.instaforex.eu/forex_analysis/318286
Ed Moya talks stock market reaction to the rumours of Fed hiking slowdown and more

Watch Out Gold Investors! "(...) Friday's labor market report is not good news for gold bulls (...)"

InstaForex Analysis InstaForex Analysis 08.08.2022 14:35
Relevance up to 09:00 2022-08-10 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.   The US jobs report—the week's most important report, was published on Friday. Economists were expecting an additional 258,000 new jobs added last month. A report from the Department of Labor showed that the US economy experienced solid job growth last month, with more than 500,000 jobs created in July. Friday's extraordinarily strong numbers ease fears that the United States will enter a recession. While this upbeat report bodes well for economic growth, it certainly doesn't address inflation. This changes the mood of market participants, focused on the last two GDP reports. On July 28, the government published a preliminary estimate of GDP for the second quarter. The report showed that in the second quarter of 2022, year-on-year GDP declined by 0.9%. Earlier this year, the BEA reported a 1.6% decline in first-quarter GDP. We must not forget that an economic recession for two quarters in a row is the generally accepted definition of a recession. Fear of a disappointing jobs report put pressure on US Treasury yields, and the dollar's decline was reversed. The dollar added 0.8%, which corresponds to Friday's decline.     Michael Hewson, chief market analyst at CMC Markets, said Friday's labor market report is not good news for gold bulls, and next week's CPI report will be the next key test. According to Bart Melek, head of commodities strategy at TD Securities, gold has recently rallied on the thought that the Fed will move from hawkish to dovish sentiment. But employment data shows that the US economy is strong, and this may prompt the Fed to act more aggressively, which is not good for gold. The next catalyst for gold prices will be the published report on the US consumer price index this week. Moreover, growing geopolitical concerns in Ukraine and China's reaction to Nancy Pelosi's visit to Taiwan may also affect gold prices.   Read more: https://www.instaforex.eu/forex_analysis/318292
Eurozone Bank Lending Under Strain as Higher Rates Bite

Higher Crude Oil Demand Is Expected! Some Countries Swaps Gas For Oil

Craig Erlam Craig Erlam 12.08.2022 13:55
Brent eyes $100 after mixed headline week The oil market has bounced back this week, with Brent once more flirting with triple-figures. There’s been a lot to digest this week, with Iran nuclear talks ongoing, US inventories rising, US output also rising, the Druzhba pipeline saga and the various forecasts. Even the forecasts themselves offered contrasting views, with OPEC downgrading demand growth and expecting the oil market to tip into surplus this quarter. The IEA, meanwhile, anticipates stronger demand growth due in part to the gas to oil switch as some countries react to sky-high prices. All things considered, the price moves highlight just how tight the market remains and how sensitive it therefore still is to spikes. A deal between the US and Iran could go some way to changing that but I think it’s clear traders are not banking on that given how the talks have gone until this point. A compelling bullish case for gold Gold is holding onto gains despite struggling to capture $1,800. The yellow metal briefly traded above here after the inflation data but it seems traders quickly changed their minds, with risk assets instead being favoured. The fact that it continues to hold onto the bulk of the gains without any significant correction may suggest there’s still an appetite for it, with slower tightening seen as a favourable outcome. This will be an interesting test for gold as $1,800 could represent an interesting rotation point from a technical perspective if there is no desire to see it above here but ultimately the case for bullish gold remains quite compelling. For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/ This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Oil rebounds, gold consolidates - MarketPulseMarketPulse
Chile's Lithium Nationalization and the Global Trend of Resource Nationalism: Implications for EV Supply Chains and Efforts to Strengthen Battery Metal Supply

Commodities: Prices Are Rising, Heatwaves In US And China Affect The Production Of Cotton

Ole Hansen Ole Hansen 12.08.2022 16:00
Summary:  The correction that for some commodities already started back in March has since the end of July increasingly been showing signs of reversing, driven by recent economic data strength, dollar weakness and signs inflation may have peaked. With the broad position adjustments having run their course, the focus has returned to supply which in many cases remains tight, thereby providing renewed support, especially across the sectors of energy and key agriculture commodities. The correction that for some commodities already started back in March has since the end of July increasingly been showing signs of reversing. According to the Bloomberg commodity sector indices, the correction period triggered peak to bottom moves of 41% in industrial metals, 31% in grains and 27% in energy. The main reason for the dramatic correction following a record run of strong gains was the change in focus from tight supply to worries about demand. Apart from China’s slowing growth outlook due to its zero-Covid policy and housing market crisis hitting industrial metals, the most important driver has been the way in which central banks around the world have been stepping up efforts to curb runaway inflation by forcing down economic activity through aggressively tightening monetary conditions. This process is ongoing but recent economic data strength, dollar weakness and signs inflation may have peaked have all helped support markets that have gone through weeks and in some cases months of sharp price declines, and with that an aggressive amount of long liquidation from financial traders as well as selling from macro-focused funds looking for a hedge against an economic downturn.With the broad position adjustments having run their course, the focus has returned to supply which in many cases remains tight, thereby providing renewed support and problems for those who have been selling markets looking for even lower prices in anticipation of recession and lower demand. Backwardation remains elevated despite growth worries The behaviour of spot commodity prices, as seen through first month futures contracts, rarely gives us the full fundamental picture with the price action often being dictated by technical price-driven speculators and funds focusing on macroeconomic developments, as opposed to the individual fundamental situation. The result of this has been a period of aggressive selling on a combination of bullish bets being scaled back but also increased selling from funds looking to hedge an economic slowdown.An economic slowdown, or in a worst-case scenario a recession, would normally trigger a surplus of raw materials as demand falters and production is slow to respond to a downturn in demand. However, during the past three months of selling, the cost of commodities for immediate delivery has maintained a healthy premium above prices for later deliveries. The chart below shows the spread measured in percent between the first futures and the 12-month forward futures contract, and while the tightness has eased a bit, we are still seeing tightness across a majority, especially within energy and agriculture. A sign that the market has sold off on expectations more than reality, and it raises the prospect of a strong recovery once the growth outlook stabilises. Crude oil The downward trending price action in WTI and Brent for the past couple of months is showing signs of reversing on a combination of the market reassessing the demand outlook amid continued worries about supply and who will and can meet demand going forward. The recovery from below $95 in Brent and $90 in WTI this week was supported by signs of softer US inflation reducing the potential peak in the Fed fund rates, thereby improving the growth outlook. In addition, the weaker dollar and improving demand, especially in the US where gasoline prices at the pumps have fallen below $4 per gallon for the first time since March.In addition, the International Energy Agency (IEA) lifted its global consumption estimate by 380 kb/d, saying soaring gas prices amid strong demand for electricity is driving utilities to switch from expensive gas to fuel-based products. Meanwhile, OPEC may struggle to raise output in the coming months due to limited spare capacity. While pockets of demand weakness have emerged in recent months, we do not expect these to materially impact on our overall price-supportive outlook. Supply-side uncertainties remain too elevated to ignore, not least considering the soon-to-expire releases of crude oil from US Strategic Reserves and the EU embargo of Russian oil fast approaching. With this in mind, we maintain our $95 to $115 range forecast for the third quarter. Gold (XAUUSD) The recently under siege yellow metal was heading for a fourth weekly gain, supported by a weaker dollar after the lower-than-expected US CPI and PPI data helped reduce expectations for how high the Fed will allow rates to run. However, rising risk appetite as seen through surging stocks and bond yields trading higher on the week have so far prevented the yellow metal from making a decisive challenge at key resistance above $1800/oz, and the recent decline in ETF holdings and low open interest in COMEX futures points to a market that is looking for a fresh and decisive trigger. We believe the markets newfound optimism about the extent to which inflation can successfully be brought under control remains too optimistic and together with several geopolitical worries, we see no reason to exit our long-held bullish view on gold as a hedge and diversifier. Gold has found some support at the 50-day moving average line at $1783, and needs to hold $1760 in order to avoid a fresh round of long liquidation the short-term. While some resistance is located just above $1800 gold needs a decisive break above $1829 in order to trigger the momentum needed to attract fresh buying in ETFs and managed money accounts in futures. Source: Saxo Group Industrial metals (Copper)   Copper has rebounded around 18% since hitting a 20-month low last month, thereby supporting a general recovery across industrial metals, the hardest hit sector during the recent correction. Supported by a softer dollar, data showing the US economy remains robust, easing concerns about the demand outlook in China and not least disruptions to producers in Asia, Europe as well as South America potentially curtailing supply at a time when exchange-monitored inventories remain at a decade low. All developments that have forced speculators to cut back recently established short positions.The potential for an improved demand outlook in China and BHP's recent announcement that it has made an offer for OZ Minerals and its nickel and copper-focused assets, is the latest in a series of global acquisitions aimed at shoring up supplies of essential metals for the energy transition. With its high electrical conductivity, copper supports all the electronics we use, from smartphones to medical equipment. It already underpins our existing electricity systems, and it is crucial to the electrification process needed over the coming years in order to reduce demand for energy derived from fossil fuels.Following a temporary recovery in the price of copper around the beginning of June when China began easing lockdown restrictions, the rally quickly ran out of steam and copper went on to tumble below key support before eventually stabilizing after finding support at $3.14/lb., the 61.8% retracement of the 2020 to 2022 rally. Since then, the price has recovered strongly but may temporarily pause after reaching finding resistance in the $3.70/lb area. We maintain a long-term bullish view on copper and prefer buying weakness instead of selling into strength. Source: Saxo Group The grains sector traded at a five-week high ahead of Friday’s supply and demand report from the US Department of Agriculture. The Bloomberg Grains Index continues to recover following its 28% June to July correction with gains this past week being led by wheat and corn in response to a weaker dollar and not least hot and dry weather in the US and another heatwave in Europe raising concerns about yield and production. Hot and dry weather at a critical stage for yield developments ahead of the soon-to-be-harvested crop has given the World Agricultural Supply and Demand Estimates report some additional attention with surveys pointing to price support with the prospect of lower yields lowering expectations for the level of available stocks ahead of the coming winter. Cotton, up 8% this month has seen the focus switch from growth and demand worries, especially in China, to deepening global supply concerns as heatwaves in the US and China hurt production prospects. Friday’s monthly supply and demand report (WASDE) from the US Department of Agriculture was expected to show lower US production driving down ending stocks by around 10% to 2.2 m bales, an 11-year low. Arabica coffee, in a downtrend since February, has also seen a steady rise since bouncing from key support below $2/lb last month. A persistent and underlying support from South American production worries has reasserted itself during the past few weeks as the current on-season crop potentially being the lowest since 2014. Brazil’s drought and cold curbed flowering last season and severe frosts in July 2021 led farmers to cut down coffee trees at a time of high costs for agricultural inputs, notably fertilizer. In addition, Columbia another top producer, has seen its crop being reduced by too much rainfall. Source: WCU: Commodity correction may have exhausted itself
The Commodity Sector Has Dropped Significantly

People Are Buying Gold. SIlver And Copper Stopped? Crude Oil Weakness

Ole Hansen Ole Hansen 16.08.2022 09:23
Summary:  Our weekly Commitment of Traders update highlights future positions and changes made by hedge funds and other speculators across commodities and forex during the week to August 9. A relatively quiet week where a continued improvement in risk appetite drove stocks higher while softening the dollar. Some commodity positions, with crude oil the major exceptions, showed signs of having reached a trough following weeks of heavy selling Saxo Bank publishes weekly Commitment of Traders reports (COT) covering leveraged fund positions in commodities, bonds and stock index futures. For IMM currency futures and the VIX, we use the broader measure called non-commercial. Link to latest report This summary highlights futures positions and changes made by hedge funds across commodities and forex during the week to August 9. A relatively quiet summer holiday impacted week where stocks traded higher ahead of last week’s CPI and PPI print after better than expected economic data helped reduce US recession fears while the market was looking for inflation to roll over. The dollar traded a tad softer, bond yields firmed up while commodities showed signs of having reached a trough following weeks of heavy selling.    Commodities Hedge funds were net buyers for a second week with demand concentrated in metals and agriculture while the energy sector saw continued selling. Overall the net long across 24 major commodity futures rose for a second week after recently hitting a two-year low. Buying was concentrated in gold, platinum, corn and livestock with crude oil and wheat being to most notable contracts seeing net selling. Energy: Speculators responded to continued crude oil weakness by cutting bullish bets in WTI and Brent crude by a combined 14% to a pre-Covid low at 304.5k lots. The reductions were primarily driven by long liquidation in both contracts following a demand fear driven breakdown in prices. Gas oil and gasoline longs were also reduced. Metals: Buying of metals extended to a second week led by gold which saw a 90% jump in the net long to 58.2k lots. Overall, net short positions were maintained in silver, platinum and copper with the latter seing a small amount of fresh selling due to profit taking on recently established longs. Agriculture: Grains were mixed with corn and soybeans seeing continued buying ahead of Friday's WASDE  report while the CBOT corn net short jumped 36% to 20k lotsand the Kansas net long was cut to a two-year low. The total grain long rose for second week having stabilised around 300k lots having collapse from a near record 800k lot on April 22.Soft commodities saw elevated short positions in sugar and cocoa being maintained with price gains in coffee and not least cotton supporting a small increase in their respective net longs. This before Friday's surge in cotton which left it up 13% on the week after the US Department of Agriculture slashed the US crop forecast by 19% to a 12-year low. Driven by a high level of abandonment of fields in the drought-stricken Southwest.      Forex In the week to August 9 when the dollar traded close to unchanged against a basket of major currencies, speculators increased to three the number of weeks of continued dollar selling. The pace of selling even accelerated to the highest since January after the gross long against ten IMM futures and the Dollar Index was slashed by 20% to $17.4 billion, a nine week low. Most notable selling of the greenback was seen against GBP and JPY followed by EUR and CHF. The Japanese yen, under pressure for months as yield differentials to the dollar widened saw its net short being cut by 22% to a 17-month low.     What is the Commitments of Traders report? The COT reports are issued by the U.S. Commodity Futures Trading Commission (CFTC) and the ICE Exchange Europe for Brent crude oil and gas oil. They are released every Friday after the U.S. close with data from the week ending the previous Tuesday. They break down the open interest in futures markets into different groups of users depending on the asset class. Commodities: Producer/Merchant/Processor/User, Swap dealers, Managed Money and otherFinancials: Dealer/Intermediary; Asset Manager/Institutional; Leveraged Funds and otherForex: A broad breakdown between commercial and non-commercial (speculators) The reasons why we focus primarily on the behavior of the highlighted groups are: They are likely to have tight stops and no underlying exposure that is being hedged This makes them most reactive to changes in fundamental or technical price developments It provides views about major trends but also helps to decipher when a reversal is looming  Source: COT: Speculators cut oil long to pre-covid low
Gold Struggles To Capitalize On Its Goodish Rebound

What Is "De-Dollarization"!? Ghana Is About To Start Buying Gold

InstaForex Analysis InstaForex Analysis 16.08.2022 14:08
Relevance up to 12:00 2022-08-17 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.   The African nation announced last week that it would launch a domestic gold buying program in September. The central bank said it would pay for the precious metal at market prices but make payments online. Ghana's Vice President Dr. Mahamudu Bawumia said the new program represents a significant and sustainable addition to Ghana's foreign exchange reserves and will strengthen the country's balance of payments. The new program has been in development for over a year. In a June 2021 presentation, Bank of Ghana Governor Ernest Addison said the plan would allow the country to double its gold reserves over the next five years. The central bank said that, along with building foreign exchange reserves, the program will also support the national gold mining industry. Ghana is the largest gold producer in Africa and the sixth largest in the world. Last year, the country produced over 117 tons of gold. Ghana has become the latest central bank to announce plans to increase its gold reserves. Earlier this year, a World Gold Council survey showed that of 57 central banks, a quarter planned to add more gold to their foreign exchange reserves. Much of the demand comes from central banks in developing countries. Many economists and market analysts view the growing interest of central banks in gold as part of growing de-dollarization trend. Countries are trying to reduce their dependence on the US dollar.   Read more: https://www.instaforex.eu/forex_analysis/319032
Lowest China's Yield Level In 2 Years!? Dollar (USD) Is Disturbing Gold In It's Challenge

Lowest China's Yield Level In 2 Years!? Dollar (USD) Is Disturbing Gold In It's Challenge

Marc Chandler Marc Chandler 16.08.2022 11:44
Overview: Equities were mostly higher in the Asia Pacific region, though Chinese and Hong Kong markets eased, and South Korea and India were closed for national holidays. Despite new Chinese exercises off the coast of Taiwan following another US congressional visit, Taiwan’s Taiex gained almost 0.85%. Europe’s Stoxx 600 is advancing for the fourth consecutive session, while US futures are paring the pre-weekend rally. Following disappointing data and a surprise cut in the one-year medium-term lending facility, China’s 10-year yield fell to 2.66%, its lowest in two years. The US 10-year is soft near 2.83%, while European yields are mostly 2-4 bp lower. Italian bonds are bucking the trend and the 10-year yield is a little higher. The Antipodeans and Norwegian krone are off more than 1%, but all the major currencies are weaker against the greenback, but the Japanese yen, which is practically flat. Most emerging market currencies are lower too. The Hong Kong Dollar, which has been supported by the HKMA, strengthened before the weekend, and is consolidating those gains today. Gold tested the $1800 level again but has been sold in the wake of the stronger dollar and is at a five-day low near $1778. The poor data from China raises questions about demand, and September WTI is off 3.6% after falling 2.4% before the weekend. It is near $88.60, while last week’s five-month lows were set near $87.00. US natgas is almost 2% lower, while Europe’s benchmark is up 2.7% to easily recoup the slippage of the past two sessions. China’s disappointment is weighing on industrial metal prices. Iron ore tumbled 4% and September copper is off nearly 3%. September wheat snapped a four-day advance before the weekend and is off 2.3% today.  Asia Pacific With a set of disappointing of data, China surprised with a 10-bp reduction in the benchmark one-year lending facility rate to 2.75%  It is the first cut since January. It also cut the yield on the seven-day repo rate to 2.0% from 2.1%. The string of poor news began before the weekend with a larger-than-expect in July lending figures. However, those lending figures probably need to be put in the context of the surge seen in June as lenders scramble to meet quota. Today's July data was simply weak. Industrial output and retail sales slowed sequentially year-over-year, whereas economists had projected modest increases. New home prices eased by 0.11%, and residential property sales fell 31.4% year-over-year after 31.8% decline in June. Property investment fell 6.4% year-over-year, year-to-date measures following a 5.4% drop in June. Fix asset investment also slowed. The one exception to the string of disappointment was small slippage in the surveyed unemployment rate to 5.4% from 5.5%. Incongruous, though on the other hand, the jobless rate for 16–24-year-olds rose to a record 19.9%. Japan reported a Q2 GDP that missed estimates, but the revisions lifted Q1 GDP out of contraction  The world's second-largest economy grew by 2.2% at an annualized pace in Q2. While this was a bit disappointing, Q1 was revised from a 0.5% fall in output to a 0.1% expansion. Consumption (1.1%) rebounded (Q1 revised to 0.3% from 0.1%) as did business spending (1.4% vs. -0.3% in Q1, which was originally reported as -0.7%). Net exports were flat after taking 0.5% off Q1 GDP. Inventories, as expected, were unwound. After contributing 0.5% to Q1 GDP, they took 0.4% off Q2 growth. Deflationary forces were ironically still evident. The GDP deflator fell 0.4% year-over-year, almost the same as in Q1 (-0.5%). Separately, Japan reported industrial surged by 9.2% in June, up from the preliminary estimate of 8.9%. It follows a two-month slide (-7.5% in May and -1.5% in April) that seemed to reflect the delayed impact of the lockdowns in China. The US dollar is little changed against the Japanese yen and is trading within the pre-weekend range (~JPY132.90-JPY133.90). It finished last week slightly above JPY133.40 and a higher closer today would be the third gain in a row, the longest advance in over a month. The weakness of Chinese data seemed to take a toll on the Australian dollar, which has been sold to three-day lows in the European morning near $0.7045. It stalled last week near $0.7140 and in front of the 200-day moving average (~$0.7150). A break of $0.7035 could signal a return to $0.7000, and possibly $0.6970. The greenback gapped higher against the Chinese yuan and reached almost CNY6.7690, nearly a two-week high. The pre-weekend high was about CNY6.7465 and today's low is around CNY6.7495. The PBOC set the dollar's reference rate at CNY6.7410, a little above the Bloomberg survey median of CNY6.7399. Note that a new US congressional delegation is visiting Taiwan and China has renewed drills around the island. The Taiwan dollar softened a little and traded at a three-day low. Europe Turkey's sovereign debt rating was cut a notch by Moody's to B3 from B2  That is equivalent to B-, a step below Fitch (B) and two below S&P (B+). Moody's did change its outlook to stable from negative. The rating agency cited the deterioration of the current account, which it now sees around 6% of GDP, three times larger than projected before Russia invaded Ukraine. The Turkish lira is the worst performing currency this year, with a 27.5% decline after last year's 45% depreciation. Turkey's two-year yield fell below 20% today for the first time in nine months, helped ostensibly by Russia's recent cash transfer. The dollar is firm against the lira, bumping against TRY17.97. The water level at an important junction on the Rhine River has fallen below the key 30-centimeter threshold (~12 inches) and could remain low through most of the week, according to reports of the latest German government estimate  Separately, Germany announced that its gas storage facility is 75% full, two weeks ahead of plan. The next target is 85% by October 1 and 95% on November 1. Reports from France show its nuclear reactors were operating at 48% of capacity, down from 50% before the weekend. A couple of reactors were shut down for scheduled maintenance on Saturday.  Ahead of Norway' rate decision on Thursday, the government reported a record trade surplus last month  The NOK229 bln (~$23.8 bln). The volume of natural gas exports surged more than four-times from a year earlier. Mainland exports, led by fish and electricity, rose by more than 20%. The value of Norway's electricity exports increased three-fold from a year ago. With rising price pressures (headline CPI rose to 6.8% in July and the underlying rate stands at 4.5%) and strong demand, the central bank is expected to hike the deposit rate by 50 bp to 1.75%. The euro stalled near $1.0370 last week after the softer than expected US CPI  It was pushed through the lows set that day in the European morning to trade below $1.02 for the first time since last Tuesday. There appears to be little support ahead of $1.0160. However, the retreat has extended the intraday momentum indicators. The $1.0220 area may now offer initial resistance. Sterling peaked last week near $1.2275 and eased for the past two sessions before breaking down to $1.2050 today. The intraday momentum indicators are stretched here too. The $1.2100 area may offer a sufficient cap on a bounce. A break of $1.20 could confirm a double top that would project back to the lows. America The Congressional Budget Office estimates that the Inflation Reduction Act reduces the budget deficit but will have a negligible effect on inflation  Yet, starting with the ISM gauge of prices paid for services, followed by the CPI, PPI, and import/export prices, the last string of data points came in consistently softer than expected. In addition, anecdotal reports suggest the Big Box stores are cutting prices to reduce inventories. Energy is important for the medium-term trajectory of measured inflation, but the core rate will prove sticky unless shelter cost increases begin to slow. While the Democrats scored two legislative victories with the approval of the Chips and Science Act and the Inflation Reduction Act, the impact on the poll ahead of the November midterm election seems minor at best. Even before the search-and-seizure of documents still in former President Trump's residence, PredictIt.Org "wagers" had turned to favor the Democratic Party holding the Senate but losing the House of Representatives. In terms of the Republican nomination for 2024, it has been back-and-forth over the last few months, and recently Florida Governor DeSantis narrowly pulled ahead of Trump. The two new laws may face international pushback aside from the domestic impact  The EU warned last week that the domestic content requirement to earn subsidies for electric vehicles appears to discriminate against European producers. The Inflation Reduction Act offers $7500 for the purchases of electric cars if the battery is built in North America or if the minerals are mined or recycled there. The EU electric vehicle subsidies are available for domestic and foreign producers alike. On the other hand, the Chips and Science Act offers billions of dollars to attract chip production and design to the US. However, it requires that companies drawing the subsidies could help upgrade China's capacity for a decade. Japan and Taiwan will likely go along. It fits into their domestic political agenda. However, South Korea may be a different kettle of fish. Hong Kong and China together accounted for around 60% of South Korea's chip exports last year. Samsung has one overseas memory chip facility. It is in China and produces about 40% of the Galaxy phones' NAND flash output. Pelosi's apparent farewell trip to Asia, including Taiwan, was not well received in South Korea. President Yoon Suk Yeol did not interrupt his staycation in Seoul to meet the US Speaker. Nor was the foreign minister sent. This is not to cast aspersions on South Korea's commitment to regional security, simply that it is not without limits. Today's economic calendar features the August Empire State manufacturing survey  A small decline is expected. The June TIC data is out as the markets close today. Today is also the anniversary of the US ending Bretton Woods by severing the last links between gold and the dollar in 1971. Canada reports manufacturing sales and wholesale trade, but the most market-sensitive data point may be the existing home sales, which are expected to have declined for the fifth consecutive month. Canada reports July CPI tomorrow (Bloomberg survey median forecast sees headline CPI slowing to 7.6% from 8.1% in June).  The Canadian dollar is under pressure  The US dollar has jumped above CAD1.2900 in Europe after finishing last week near CAD1.2780. Last week's high was set near CAD1.2950, where a $655 mln option is set to expire today. A move above CAD1.2920 could target CAD1.2975-CAD1.3000 over the next day or day. A combination of weaker equities, thin markets, and a short-term market leaning the wrong way after the likely drivers today. The greenback posted its lowest close in two months against the Mexican peso before the weekend near MXN19.85. However, it is rebounding today and testing the MXN20.00 area Initial resistance may be encountered around MXN20.05, but we are looking for a move toward MXN20.20 in the coming days. Mexico's economic calendar is light this week, and the highlight is the June retail sales report at the end of the week.    Disclaimer Source: China Disappoints and Surprises with Rate Cut
Swiss Pension Fund Publica Will Increase Its Share Of Gold To 1%

Naturally Gold Price Is Awaiting FOMC Minutes

Craig Erlam Craig Erlam 17.08.2022 12:33
Oil rebounds off support as JCPOA talks continue Oil prices are edging higher on Wednesday, bouncing off technical support over the last 24 hours as Chinese Premier Li pushed for more pro-growth measures from local officials. There are growing downside risks as a result of the growth outlook and ongoing uncertainty around Chinese Covid restrictions. What’s more, talks between the US and Iran are continuing around the nuclear deal which, if it gets over the line, could be a big positive for oil supply and therefore a negative for prices. There is no shortage of scepticism around the prospects for the JCPOA to be revived though but we may be reaching a point where that will become clear. For now, Brent appears to have decent support around $92. Gold flat after a pullback Gold is marginally lower on the day with focus fully on the Fed minutes later in the day. The yellow metal has been knocked back in recent days after briefly breaking through $1,800 resistance. It’s remained quite resilient though against the backdrop of a strengthening dollar and the FOMC minutes later could potentially reward that. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Oil edges higher, gold flat - MarketPulseMarketPulse
Commodities: Deglobalization, Green Transformation, Urbanization And Other Things That Got Involved

Commodities: Deglobalization, Green Transformation, Urbanization And Other Things That Got Involved

Ole Hansen Ole Hansen 19.08.2022 15:50
Summary:  Commodities traded with a softer bias this week as the focus continued to rest on global macro-economic developments, in some cases reducing the impact of otherwise supportive micro developments, such as the fall in inventories seen across several individual commodities. Overall, however, we do not alter our long-term views about commodities and their ability to move higher over time, with some of the main reasons being underinvestment, urbanization, green transformation, sanctions on Russia and deglobalization. Commodities traded with a softer bias this week as the focus continued to rest on global macro-economic developments, in some cases reducing the impact of otherwise supportive micro developments, such as the fall in inventories seen across several individual commodities. The dollar found renewed strength and bond yields rose while the month-long bear-market bounce across US stocks showed signs of running out of steam.The trigger being comments from Federal Reserve officials reiterating their resolve to continue hiking rates until inflation eases back to their yet-to-be revised higher long-term target of around 2%. Those comments put to rest expectations that a string of recent weak economic data would encourage the Fed to reduce the projected pace of future rate hikes.The result of these developments being an elevated risk of a global economic slowdown gathering pace as the battle against inflation remains far from won, not least considering the risk of persistent high energy prices, from gasoline and diesel to coal and especially gas. A clear sign that the battle between macro and micro developments continues, the result of which is likely to be a prolonged period of uncertainty with regards to the short- and medium-term outlook.Overall, however, these developments do not alter our long-term views about commodities and their ability to move higher over time. In my quarterly webinar, held earlier this week, I highlighted some of the reasons why we see the so-called old economy, or tangible assets, performing well over the coming years, driven by underinvestment, urbanization, green transformation, sanctions on Russia and deglobalization. Returning to this past week’s performance, we find the 2.3% drop in the Bloomberg Commodity Index, seen above, being in line with the rise in the dollar where gains were recorded against all the ten currencies, including the Chinese renminbi, represented in the index. It is worth noting that EU TTF gas and power prices, which jumped around 23% and 20% respectively, and Paris Milling wheat, which slumped, are not members of the mentioned commodity index.Overall gains in energy led by the refined products of diesel and US natural gas were more than offset by losses across the other sectors, most notably grains led by the slump in global wheat prices and precious metals which took a hit from the mentioned dollar and yield rise. Combating inflation and its impact on growth remains top of mind Apart from China’s slowing growth outlook due to its zero-Covid policy and housing market crisis hitting industrial metals, the most important driver for commodities recently has been the macro-economic outlook currently being dictated by the way in which central banks around the world have been stepping up efforts to curb runaway inflation by forcing down economic activity through aggressively tightening monetary conditions. This process is ongoing and the longer the process takes to succeed, the bigger the risk of an economic fallout. US inflation expectations in a year have already seen a dramatic slump but despite this the medium- and long-term expectations remain anchored around 3%, still well above the Fed’s 2% target.Even reaching the 3% level at this point looks challenging, not least considering elevated input costs from energy. Failure to achieve the target remains the biggest short-term risk to commodity prices with higher rates killing growth, while eroding risk appetite as stock markets resume their decline. These developments, however, remain one of the reasons why we find gold and eventually also silver attractive as hedges against a so-called policy mistake. Global wheat prices tumble The prospect for a record Russian crop and continued flows of Ukrainian grain together with the stronger dollar helped push prices lower in Paris and Chicago. The recently opened corridor from Ukraine has so far this month seen more than 500,000 tons of crops being shipped, and while it's still far below the normal pace, it has nevertheless provided some relief at a time where troubled weather has created a mixed picture elsewhere. The Chicago wheat futures contract touched a January low after breaking $7.75/bu support while the Paris Milling (EBMZ2) wheat traded near the lowest since March. With most of the uncertainties driving panic buying back in March now removed, calmer conditions should return with the biggest unknown still the war in Ukraine and with that the country’s ability to produce and export key food commodities from corn and wheat to sunflower oil. EU gas reaches $73/MMBtu or $415 per barrel of oil equivalent Natural gas in Europe headed for the longest run of weekly gains this year, intensifying the pain for industries and households, while at the same time increasingly threatening to push economies across the region into recession. The recent jump on top of already elevated prices of gas and power, due to low supplies from Russia, has been driven by an August heatwave raising demand while lowering water levels on the river Rhine. This development has increasingly prevented the safe passage of barges transporting coal, diesel and other essentials, while refineries such as Shell’s Rhineland oil refinery in Germany have been forced to cut production. In addition, half of Europe’s zinc and aluminum smelting capacity has been shut, thereby adding support to these metals at a time the market is worried about the demand outlook.An abundance of rain and lower temperatures may in the short term remove some of the recent price strength but overall, the coming winter months remain a major worry from a supply perspective. Not least considering the risk of increased competition from Asia for LNG shipments. Refinery margin jump lends fresh support to crude oil Crude oil, in a downtrend since June, is showing signs of selling fatigue with the technical outlook turning more price friendly while fresh fundamental developments are adding some support as well. Worries about an economic slowdown driven by China’s troubled handling of Covid outbreaks and its property sector problems as well as rapidly rising interest rates were the main drivers behind the selling since March across other commodity sectors before eventually also catching up with crude oil around the middle of June. Since then, the price of Brent has gone through a $28 dollar top to bottom correction. While the macro-economic outlook is still challenged, recent developments within the oil market, so-called micro developments, have raised the risk of a rebound. The mentioned energy crisis in Europe continues to strengthen, the result being surging gas prices making fuel-based products increasingly attractive. This gas-to-fuel switch was specifically mentioned by the IEA in their latest update as the reason for raising their 2022 global oil demand growth forecast by 380k barrels per day to 2.1 million barrels per day. Since the report was published, the incentive to switch has increased even more, adding more upward pressure on refinery margins. While pockets of demand weakness have emerged in recent months, we do not expect these to materially impact on our overall price-supportive outlook. Supply-side uncertainties remain too elevated to ignore, not least considering the soon-to-expire releases of crude oil from US Strategic Reserves and the EU embargo of Russian oil fast approaching. In addition, the previously mentioned increased demand for fuel-based products to replace expensive gas. With this in mind, we maintain our $95 to $115 range forecast for the third quarter. Gold and silver struggle amid rising dollar and yields Both metals, especially silver, were heading for a weekly loss after hawkish sounding comments from several FOMC members helped boost the dollar while sending US ten-year bond yields higher towards 3%. It was the lull in both that helped trigger the recovery in recent weeks, and with stock markets having rallied as well during the same time, the demand for gold has mostly been driven by momentum following speculators in the futures market. The turnaround this past week has, as a result of speculators' positioning, been driven by the need to reduce bullish bets following a two-week buying spree which lifted the net futures long by 63k lots or 6.3 million ounces, the strongest pace of buying in six months. ETF holdings meanwhile have slumped to a six-month low, an indication that investors, for now, trust the FOMC’s ability to bring down inflation within a relatively short timeframe. An investor having doubts about this should maintain a long position as a hedge against a policy mistake. Some investors may feel hard done by gold’s negative year-to-date performance in dollars, but taking into account it had to deal with the biggest jump in real yields since 2013 and a surging dollar, its performance, especially for non-dollar investors relative to the losses in bonds and stocks, remains acceptable. In other words, a hedge in gold against a policy mistake or other unforeseen geopolitical events has so far been almost cost free.   Source: WCU: Bearish macro, bullish micro regime persists
Gold Stocks Have Performed Very Well Under Pressure

XAU/USD Technical Analysis and Trading Tips for August 19, 2022

InstaForex Analysis InstaForex Analysis 19.08.2022 17:38
Relevance up to 12:00 2022-08-24 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.   Gold is giving way to its role as a defensive asset to the dollar, and the XAU/USD pair is declining for the 5th day in a row today. As of this writing, the pair is trading near 1753.00, close to the strong support level of 1748.00 (144 EMA on the weekly chart). Given the long-term upward trend of XAU/USD, it is logical to assume a rebound near this support level. In case of its breakdown, the key support level 1690.00 (200 EMA on the weekly chart) becomes the target, the breakdown of which will cause XAU/USD to enter the zone of a long-term bearish market.     If there is still a rebound near the current levels and the support level of 1748.00, then the signal for the resumption of long positions will be a breakdown of the important resistance levels of 1772.00 (200 EMA on the 4-hour chart), 1773.00 (200 EMA on the 1-hour chart), chart). In this case, a retest of the "round" resistance level 1800.00 is possible, which became a kind of "balance line" for the pair for a long time until the beginning of 2022.     The breakdown of the key resistance level of 1822.00 (200 EMA on the daily chart) will confirm the scenario for the resumption of the long-term bullish trend for XAU/USD. Support levels: 1748.00, 1700.00, 1690.00, 1682.00, 1670.00 Resistance levels: 1772.00, 1773.00, 1780.00, 1800.00, 1822.00, 1832.00, 1875.00 Trading Tips Sell Stop 1746.00. Stop-Loss 1761.00. Take-Profit 1700.00, 1690.00, 1682.00, 1670.00 Buy Stop 1761.00. Stop-Loss 1746.00. Take-Profit 1772.00, 1773.00, 1780.00, 1800.00, 1822.00, 1832.00, 1875.00   Read more: https://www.instaforex.eu/forex_analysis/319407
Gold Has A Chance For The Rejection Of The Support

XAU/USD: dollar demand prevails over gold demand

InstaForex Analysis InstaForex Analysis 19.08.2022 17:41
Relevance up to 12:00 2022-08-24 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. The dollar continues to strengthen, and the dollar index (DXY) ends the week with a decent gain. Yesterday DXY decisively broke through the local resistance level of 107.00 and, as of this writing, DXY futures are trading near 107.62, returning to the ascending channel on the daily DXY chart and heading towards the next "round" resistance level of 108.00. Our yesterday's forecast on this matter was justified, and now after the breakdown of the local multi-month high of 109.14, reached in mid-July, the mark of 110.00 will be the next growth target for DXY (the upper limit of this channel passes through it).     Due to the absence of important publications for the market in today's economic calendar, the emerging trend of strengthening the dollar today is likely to continue until the end of the trading day. Next week, market participants will be watching the Fed's annual economic forum in Jackson Hole, Wyoming, which will bring together representatives of the world's leading central banks and economists. Statements by representatives of central banks may have a significant impact on national currencies. As was the case in previous forums, Fed Chairman Jerome Powell is scheduled to speak at its opening (August 25). Undoubtedly, the main issue for market participants is the topic of tightening monetary policies by the world's leading central banks and their fight against galloping inflation. In the meantime, the dollar is successfully recovering the positions lost in the previous three weeks, also strengthening against the traditional defensive assets—the yen, the franc, and gold. As for this precious metal, its quotes are extremely sensitive to changes in the monetary policy of the world's leading central banks, especially the Fed. Gold does not bring investment income but is in active demand during geopolitical and economic uncertainty, and is a protective asset in the face of rising inflation. Now is just such a moment.     However, it seems that it is losing its role as a protective asset to the dollar. XAU/USD pair is falling today for the 5th day in a row, and as of this writing, it is trading near the 1753.00 mark, near the strong support level of 1748.00. In case of its breakdown, the key support level 1690.00 becomes the target, the breakdown of which will cause XAU/USD to enter the zone of a long-term bear market.   Read more: https://www.instaforex.eu/forex_analysis/319407
The Outlook Of Gold By FXSTreet’s Dhwani Mehta

Commodities Amid Turbulent Times | Gold, Silver And Crude Oil In Eyes Of Jason Sen (DayTradeIdeas) - 22/08/22

Jason Sen Jason Sen 22.08.2022 08:37
Gold Spot broke 1765 for a sell signal targeting 1740/35 this week. Silver breaks back below support at 2030/10 to turn the outlook negative again. WTI Crude crawls higher, but difficult to hold longs. We could reach strong resistance at 9460/9500. Shorts need stops above 9550. Remember when support is broken it usually acts as resistance & vice-versa. Update daily by 05:00 GMT Today's Analysis. Gold outlook negative so we are looking to sell at resistance on any bounce. First resistance at 1755/60. Unlikely but if we continue higher look for strong resistance at 1770/75. Shorts need stops above 1780. Prices are expected continue lower this week initially targeting 1740/35 then 1729/27 & perhaps as far as 1715/10. Silver collapsed from resistance at 2020/30 as expected hitting my targets of 1980, 1960/55 & 1920/15. Further losses are expected to 1880/70 & eventually a retest of the July low at 1820/10. A break below 1795 is the next sell signal. Gains are likely to be limited with first resistance at 1940/50. Shorts need stops above 1965. Se 2000/20. Shorts need stops above 2040. WTI Crude September minor resistance at 9150/9200 but above here we could reach strong resistance at 9460/9500. Shorts need stops above 9550. Holding minor resistance at 9150/9200 (in what is probably a bull flag pattern) targets 9070/50 then 8900. On further losses look for 8850/8800.
Gold Has A Chance For Further Downside Movement - 30.12.2022

Gold Is At Risk Of Being Liquidated!? Ukraine Shipment Accelerates

Ole Hansen Ole Hansen 22.08.2022 13:47
Summary:  Our weekly Commitment of Traders update highlights future positions and changes made by hedge funds and other speculators across commodities and forex during the week to August 16. A week that potentially saw a cycle peak in US stocks and where the dollar and treasury yields both traded calmly before pushing higher. Commodities meanwhile continued their recent recovery with funds being net buyers of most contracts, the major exceptions being gold and crude oil Saxo Bank publishes weekly Commitment of Traders reports (COT) covering leveraged fund positions in commodities, bonds and stock index futures. For IMM currency futures and the VIX, we use the broader measure called non-commercial. Link to latest report This summary highlights futures positions and changes made by hedge funds across commodities and forex during the week to August 16. A week that potentially saw a cycle peak in US stocks with the S&P 500 reversing lower after reaching a four-month high, and where the dollar and treasury yields both traded calm before pushing higher. Commodities meanwhile continued their recent recovery with all sectors, except precious metals and grains recording gains. Commodities Hedge funds were net buyers for a third week with the total net long across the 24 major commodity futures tracked in this update rising by 14% to reach a seven week high at 988k lots. Some 56% below the recent peak reached in late February before Russia’s attack on Ukraine drove an across-the-board volatility spike which forced funds to reduce their exposure. Since then and up until early July, worries about a global economic slowdown, caused by a succession of rapid rate hikes in order to kill inflation, was one of the key reasons for the slump in speculative length.Returning to last week, the 123k lot increase was split equally between new longs being added and short positions being scaled back, and overall the net increase was broad led by natural gas, sugar, cattle and grains with most of the selling being concentrated in crude oil and gold. Energy: Weeks of crude oil selling continued with the combined net long in WTI and Brent falling by 26k lots to 278k lots, the lowest belief in rising prices since April 2020. Back then the market had only just began recovering the Covid related energy shock which briefly sent prices spiraling lower. While funds continued to sell crude oil in anticipation of an economic slowdown the refined product market was sending another signal with refinery margins on the rise again, partly due surging gas prices making refined alternatives, such as diesel, look cheap. As a result, the net long in ICE gas oil was lifted by 24% to 62k lots while RBOB gasoline and to a lesser extent ULSD also saw net buying. The net short in Henry Hub natural gas futures was cut by 55% as the price jumped by 19%. Metals: Renewed weakness across investment metals triggered a mixed response from traders with gold seeing a small reduction in recently established longs while continued short covering reduced bearish bets in silver, platinum and palladium. With gold resuming its down move after failing to find support above $1800, the metal has been left exposed to long liquidation from funds which in the previous two weeks had bought 63.3k lots. Copper’s small 1% gain on the week supported some additional short covering, but overall the net short has stayed relatively stable around 16k lots for the past six weeks. Agriculture: Speculators were net buyers of grains despite continued price weakness following the latest supply and demand report from the US Department of Agriculture on August 12, and after shipments of grains from Ukraine continued to pick up speed. From a near record high above 800k lots on April 19, the net long across six major crop futures went on to slump by 64% before buyers began dipping their toes back in to the market some three weeks ago. Buying was concentrated in bean oil and corn while the wheat sector remained challenged with the net long in Kansas wheat falling to a 2-year low. The four major softs contract saw strong buying led by sugar after funds flipped their position back to a 13.4k lots net long. The cocoa short was reduced by 10% while the coffee long received a 25% boost. Cotton’s 18% surge during the week helped lift the long by 35% to 44.7k lots.     Forex A mixed week in forex left the speculative dollar long close to unchanged against ten IMM futures and the DXY. Selling of euro saw the net short reach a fresh 2-1/2-year high at 42.8k lots or €5.3 billion equivalent while renewed selling of JPY, despite trading higher during the reporting week, made up most of the increase in dollar length. Against these we saw short covering reduce CHF, GBP and MXN short while CAD net long reached a 14-month high.    What is the Commitments of Traders report? The COT reports are issued by the U.S. Commodity Futures Trading Commission (CFTC) and the ICE Exchange Europe for Brent crude oil and gas oil. They are released every Friday after the U.S. close with data from the week ending the previous Tuesday. They break down the open interest in futures markets into different groups of users depending on the asset class. Commodities: Producer/Merchant/Processor/User, Swap dealers, Managed Money and otherFinancials: Dealer/Intermediary; Asset Manager/Institutional; Leveraged Funds and otherForex: A broad breakdown between commercial and non-commercial (speculators) The reasons why we focus primarily on the behavior of the highlighted groups are: They are likely to have tight stops and no underlying exposure that is being hedged This makes them most reactive to changes in fundamental or technical price developments It provides views about major trends but also helps to decipher when a reversal is looming   Source: COT: Gold and oil left out as funds return to commodities
Swiss Pension Fund Publica Will Increase Its Share Of Gold To 1%

Want To Sell 1 Ounce of Gold? What Can We Expect From XAUUSD This Week?

InstaForex Analysis InstaForex Analysis 22.08.2022 13:54
Relevance up to 10:00 2022-08-27 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.     With gold ending the week down 3%, Wall Street analysts have turned bearish on gold this week, blaming the strong US dollar and pressure from the upcoming Jackson Hole symposium. On Friday, gold fell under dollar pressure as the US dollar index climbed to a 20-year high.     Markets remain focused on the Fed's speech after July FOMC minutes showed that Fed officials ultimately agreed on the need to slow down the tightening cycle. However, they first need to see how their rate hikes will affect inflation. This week, it is worth paying attention to the speech of Fed Chairman Jerome Powell at the economic policy symposium in Jackson Hole, scheduled for Friday, in which the economic forecast will be announced. Powell's remarks this week are one of the key avenues the Fed could use to stop the market from sizing up next year's rate cut cycle after this year's tightening. Market expectations do not match forecasts. If rates remain elevated, this will increase interest in precious metals. The results of the weekly survey of gold showed that Wall Street analysts are bearish on gold prices this week. Of the 11 analysts who took part in the survey, 55% expect prices to fall, 27% are neutral, and only 18% call for price increases. The Main Street side remained bullish. Of the 709 retailers, 46% predicted higher prices, 35% called for lower prices, and 19% were neutral.     According to senior analyst Jim Wyckoff, the near-term technical picture remains bearish. Last week's drop below $1,800 an ounce put the bulls on hold.     Alliance Financial precious metals dealer Frank McGee is forecasting lower prices this week.   Read more: https://www.instaforex.eu/forex_analysis/319538
Gold Is Showing A Good Sign For Further Drop

What Do Gold Traders Expect From Jerome Powell's Speech During Jackson Hole Meeting?

Craig Erlam Craig Erlam 22.08.2022 14:55
Oil choppy as traders await JCPOA decision Oil prices are off more than 1% this morning as choppy trade continues. There remain many factors influencing the oil price right now from a tight market to a diminishing growth outlook and a potential Iran nuclear deal. The prospects for the latter could become clearer over the course of this week although that has been suggested many times this year and yet here we are. We could see WTI remain choppy around $90 and Brent hover above $92 for a little while longer yet. Gold pushed back further but faces a big test of support Gold remains on the backfoot amid a resurgent dollar as 10-year Treasuries continue to creep back towards 3% and the two-year hovers around its June highs. Traders are naturally looking for clarity from Powell’s Jackson Hole appearance later this week and seem to think it’s going to come in the form of hawkish warnings. That has dampened sentiment in the yellow metal which has been further pushed back from its recent peak above $1,800 and now trades around the 61.8% retracement level from its July lows to August highs. A good test for overall sentiment in gold. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Oil slips, gold under pressure - MarketPulseMarketPulse
iPhones Banned in Chinese Offices: Tech Tensions Escalate

China's Plan For Dying Property Markets. Nasdaq 100 And S&P 500

Saxo Strategy Team Saxo Strategy Team 23.08.2022 08:37
Summary:  Equities were sold off on Monday, continuing a slide from their summer rally high, in the midst of position adjustments ahead of the Jackson Hole central banker event later this week. U.S. 10-year yields returned to above 3%. China cut its 5-year loan prime rates and plans to extend special loans to boost the ailing property markets. What is happening in markets?   Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I)  U.S. equities lost ground and continued to retrace from the high of the latest rally since mid-June.  The market sentiment has become more cautious ahead of Fed Chair Powell’s speech this Friday at the Jackson Hole symposium and a heavy economic data calendar, S&P 500 – 2.1%, Nasdaq 100 -2.7%.  The rise of U.S. 10-year bond yield back to above 3% added to the selling pressures in equities.  Zoom Video (ZM:xnas) fell 8% in after-hours trading as the company reported Q2 revenues and earnings missing estimates and cut its full year revenues guidance. U.S. treasuries (TLT:xnas, IEF:xnas, SHY:xnas) Bonds were sold off as traders adjusted positions ahead of the Jackson Hole.  The treasury yield curve bear flattened with 2-year yields surging 8bps to 3.30% and 10-year yields climbing 4bps to 3.01%, above the closely watched 3% handle.  Hong Kong’s Hang Seng (HSIQ2) and China’s CSI300 (03188:xhkg) Hang Seng fell 0.6% while CSI300 climbed 0.7% on Monday. Chinese developers gained on today’s larger-than-expected cut in the 5-year loan prime rate and the Chinese authorities plan to provide special loans through policy banks to support the delivery of stalled residential housing projects, CIFI (00883:xhkg) +11.5%, Country Garden (02007:xhkg) +3.2%.  China extended EV waivers from vehicle purchase tax and other fees to the end of 2023, but the share price reactions of Chinese EV makers traded in Hong Kong were mixed.  Great Wall Motor (02333:xhkg) soared 11%, benefiting from launching a new model that has a 1,000km per charge battery while Nio (09866:xhkg) and Li Auto(02015:xhkg) fell 4.2% and 1.4% respectively. Xiaomi (01810:xhkg) dropped 3.3% after Q2 revenues -20% YoY and net profit -67% YoY, on lower smartphone shipments (-26% YoY).  Smartphone parts suppliers, AAC Technologies (02018:xhkg) and Sunny Optical (02382:xhkg) declined 5.6% and 4.2% respectively.  The share price performance of the four companies that will be added to the Hang Seng Index was mixed, Baidu (09888:xhkg) +0.9%, China Shenhua Energy (01088:xhkg) +2.1%, Hansoh Pharmaceutical (03692:xhkg) +3.2% but Chow Tai Fook Jewellery (01929:xhkg) -0.6%.  SenseTime (00020:xhkg) gained 4.2% as the company will replace China Pacific Insurance (02601:xhkg) -2.8% as a constituent company of the Hang Seng China Enterprises Index.  ENN Energy (02688:xhkg) plunged more than 14% after reporting H1 results below market expectations.  China retailer Gome (00493) collapsed 20% after resuming trading from suspension and a plan t buy from the controlling shareholder a stake in China property assets.  EURUSD falls below parity, eyes on 0.9500 The latest concerns on the European energy crisis weighed on the Euro which was seen sipping below parity to the US dollar. Higher US yields and gains in the US dollar also underpinned, taking EURUSD to lows of 0.9926. The European recession is coming hard and fast, and the PMIs today will likely signal increasing pressure on the region. Also on the radar will be Fed Chair Powell’s speech at the Jackson Hole later this week, with a fresh selloff in the pair likely to target 0.9500 next. USDCNH heading to further highs After PBOC’s easing measures on Monday, the scope for further yuan weakness has increased. USDCNH broke above 6.8600 overnight and potentially more US dollar strength this week on the back of a pushback from Fed officials on easing expectations for next year could mean a test of 7.00 for USDCNH. Still, the move in yuan is isolated, coming from China moving to prevent the yuan from tracking aggravated USD strength rather than showing signs of desiring a broader weakening. EURCNH has plunged to over 1-month lows of 6.8216 on the back of broader EUR weakness. Crude oil prices (CLU2 & LCOV2) Crude oil prices made a recovery overnight despite the strength in the US dollar. A global shift from gas to oil, from Europe to Asia, has taken a deeper hold amid gas shortage fears accelerating in the wake of another upcoming maintenance of the Nordstream pipeline. Diesel and refinery margins have also been supported as a result, with Asia diesel crack rising to its previous high of $63 amid low inventory levels. WTI futures reversed back to the $90/barrel levels and Brent were back above $96. Comments from Saudi Energy Minister threatening to dial back supply also lifted prices, but these were mis-read and in fact, focused more on the mismatch between the tightness in the futures and the physical market. Gold (XAUUSD) and Silver (XAGUSD) Gold broke below the key $1744 support and is now eying $1729, the 61.8% retracement of the July to August bounce. Dollar strength and a run higher in US yields weighed on the shine of the yellow metal, which has seen downside pressures since last week after touching the critical $1800-level. Hawkish Fed talk this week could further weigh on the short-term prospects for Gold. Silver also dipped below the key 19 handle, erasing most of the gains seen since late July.   What to consider?   German year-ahead power prices hit a fresh record high German year-ahead power prices surged to EUR 700/MWh with Dutch TTF gas prices close to EUR 300/MWh. The surge came on the back of another leg higher in natural gas prices which rose over 8% in Europe amid concerns around the next scheduled 3-day maintenance of the Nordstream pipeline. It appears that demand destruction remains the most obvious but painful cure right now, along with a longer-term focus on ensuring a broad-based supply of energy from coal, gas, nuclear, solar, hydrogen, and more.  Australia and Japan services PMIs plunged into contraction Australia saw its services PMI drop to 49.6 in August in a flash print, from 50.9 in July. Manufacturing PMI, however, held up at 54.5, just weakening slightly from last month’s 55.7. The spate of rate hikes seen from Reserve Bank of Australia is likely taking its toll on demand and manufacturing. Meanwhile, prices remain elevated amid the persistent supply chain issues, and more rate hikes are still on the cards. Japan’s flash manufacturing PMI for August came in lower at 51.0 from 52.1 previously, nut stayed in expansion territory. Services PMI however plunged into the contraction zone below 50, coming in at 49.2 for a flash August print from 50.3 in July. The fresh COVID wave in Japan, although comes without any broad-based new restrictions, is impeding the services demand and will likely weigh on Q3 GDP growth. Europe and UK PMIs may spell further caution The Euro-area flash composite PMI and the UK flash PMI for August are both due to be released on Tuesday. Following a slide in ZEW and Sentix indicators for July, the stage is set for a weaker outcome on the PMIs too. July composite PMI for the Euro-area dipped into contractionary territory at 49.9, while the UK measure held up at 52.1. The surge in gas and electricity prices continue to weigh on GDP growth outlook, with recession likely to hit by the end of the year. China’s plan to provide loans to ensure delivery of presold residential projects is said to be of the size of RMB 200 billion Last Friday, Xinhua News reported that the PBoC, jointly with the Housing Ministry and the Ministry of Finance rolled out a program to make special loans through policy banks to support the delivery of stalled residential housing projects but the size of the program was not mentioned.   A Bloomberg report yesterday, citing “people familiar with the matter”, suggested the size of the support lending program could be as large as RMB 200 billion.  Beijing municipal government rolled out initiatives to promote hydrogen vehicles The municipal government of Beijing announced support for the construction of hydrogen vehicle refueling stations with RMB500 million for each station, aiming at building 37 new stations by 2023 and bringing the adoption of fuel-cell cars to over 10,000 units in the capital. Earlier in the month, the Guangdong province released a plan to build 200 hydrogen vehicle refueling stations by 2025. Since last year, there have been 13 provinces and municipalities rolling out policies to promote the development of the hydrogen vehicle industry.  Earnings on tap Reportedly there have been shorts being built up in Dollar Tree (DLTR:xnys) as traders are expecting that discount retailer missing when reporting this Thursday.   On the other hand, investors are expecting Dollar General (DG:xnys) results to come in more favourably, , which also reports this Thursday.  Key earnings scheduled to release today including Medtronic (MDT:xnys), Intuit (INTU:xnas), JD.COM (09618.xhkg/JD.xnas), JD Logistics (02615:xhkg), Kingsoft (02888:xhkg), and Kuishaou (01023:xhkg). Singapore reports July inflation figures today Singapore's inflation likely nudged higher in July, coming in close proximity to 7% levels from 6.7% y/y in June. While both food and fuel costs continue to create upside pressures on inflation, demand-side pressures are also increasing as the region moves away from virus curbs. House rentals are also running high due to high demand and delayed construction limiting supplies. The Monetary Authority of Singapore has tightened monetary policy but more tightening moves can be expected in H2 even as the growth outlook has been downwardly revised.     For a week-ahead look at markets – tune into our Saxo Spotlight. For a global look at markets – tune into our Podcast   Source: APAC Daily Digest: What is happening in markets and what to consider next – August 23, 2022
What Should Happened For Gold To Go Into Renaissance

What Should Happened For Gold To Go Into Renaissance

InstaForex Analysis InstaForex Analysis 23.08.2022 18:45
Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. Red lines - bearish channel Black lines - Fibonacci retracements Gold price is bouncing towards $1,750. Gold price made a low right at the 61.8% Fibonacci retracement and is now bouncing. This is positive news for bulls. Respecting the 61.8% Fibonacci level is very important for bulls. At this retracement level we usually see trend reversals. Gold's decline from above $1,800 is now complete. Price has formed a higher low at $1,727. Price remains inside the bearish medium-term channel. Is Gold price starting a new upward move from current levels that will eventually push out of the medium-term bearish channel towards $1,850-$1,900? In order for this scenario to come true we need to see a) a new sequence of higher highs and higher lows b) bulls must defend $1,727 area and not let price fall below it c) break above $1,790 upper channel boundary. On the other hand bears would want to see price form a lower high and get rejected at the bounce towards $1,790. Bears want to see a lower high being formed and then price break below $1,727. Conclusion, as long as price remains inside the bearish medium-term channel, we favor the bearish scenario.   Source: Forex Analysis & Reviews: Technical analysis on Gold for August 23rd, 2022.  
In Germany, The Next-Year Prices For Energy Are Astonishing! Why?

In Germany The Next-Year Prices For Energy Are Astonishing! Why?

Saxo Strategy Team Saxo Strategy Team 24.08.2022 09:03
Summary:  Equities were sold off on Monday, continuing a slide from their summer rally high, in the midst of position adjustments ahead of the Jackson Hole central banker event later this week. U.S. 10-year yields returned to above 3%. China cut its 5-year loan prime rates and plans to extend special loans to boost the ailing property markets. What is happening in markets? Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I)  U.S. equities lost ground and continued to retrace from the high of the latest rally since mid-June.  The market sentiment has become more cautious ahead of Fed Chair Powell’s speech this Friday at the Jackson Hole symposium and a heavy economic data calendar, S&P 500 – 2.1%, Nasdaq 100 -2.7%.  The rise of U.S. 10-year bond yield back to above 3% added to the selling pressures in equities.  Zoom Video (ZM:xnas) fell 8% in after-hours trading as the company reported Q2 revenues and earnings missing estimates and cut its full year revenues guidance. U.S. treasuries (TLT:xnas, IEF:xnas, SHY:xnas) Bonds were sold off as traders adjusted positions ahead of the Jackson Hole.  The treasury yield curve bear flattened with 2-year yields surging 8bps to 3.30% and 10-year yields climbing 4bps to 3.01%, above the closely watched 3% handle.  Hong Kong’s Hang Seng (HSIQ2) and China’s CSI300 (03188:xhkg) Hang Seng fell 0.6% while CSI300 climbed 0.7% on Monday. Chinese developers gained on today’s larger-than-expected cut in the 5-year loan prime rate and the Chinese authorities plan to provide special loans through policy banks to support the delivery of stalled residential housing projects, CIFI (00883:xhkg) +11.5%, Country Garden (02007:xhkg) +3.2%.  China extended EV waivers from vehicle purchase tax and other fees to the end of 2023, but the share price reactions of Chinese EV makers traded in Hong Kong were mixed.  Great Wall Motor (02333:xhkg) soared 11%, benefiting from launching a new model that has a 1,000km per charge battery while Nio (09866:xhkg) and Li Auto(02015:xhkg) fell 4.2% and 1.4% respectively. Xiaomi (01810:xhkg) dropped 3.3% after Q2 revenues -20% YoY and net profit -67% YoY, on lower smartphone shipments (-26% YoY).  Smartphone parts suppliers, AAC Technologies (02018:xhkg) and Sunny Optical (02382:xhkg) declined 5.6% and 4.2% respectively.  The share price performance of the four companies that will be added to the Hang Seng Index was mixed, Baidu (09888:xhkg) +0.9%, China Shenhua Energy (01088:xhkg) +2.1%, Hansoh Pharmaceutical (03692:xhkg) +3.2% but Chow Tai Fook Jewellery (01929:xhkg) -0.6%.  SenseTime (00020:xhkg) gained 4.2% as the company will replace China Pacific Insurance (02601:xhkg) -2.8% as a constituent company of the Hang Seng China Enterprises Index.  ENN Energy (02688:xhkg) plunged more than 14% after reporting H1 results below market expectations.  China retailer Gome (00493) collapsed 20% after resuming trading from suspension and a plan t buy from the controlling shareholder a stake in China property assets.  EURUSD falls below parity, eyes on 0.9500 The latest concerns on the European energy crisis weighed on the Euro which was seen sipping below parity to the US dollar. Higher US yields and gains in the US dollar also underpinned, taking EURUSD to lows of 0.9926. The European recession is coming hard and fast, and the PMIs today will likely signal increasing pressure on the region. Also on the radar will be Fed Chair Powell’s speech at the Jackson Hole later this week, with a fresh selloff in the pair likely to target 0.9500 next. USDCNH heading to further highs After PBOC’s easing measures on Monday, the scope for further yuan weakness has increased. USDCNH broke above 6.8600 overnight and potentially more US dollar strength this week on the back of a pushback from Fed officials on easing expectations for next year could mean a test of 7.00 for USDCNH. Still, the move in yuan is isolated, coming from China moving to prevent the yuan from tracking aggravated USD strength rather than showing signs of desiring a broader weakening. EURCNH has plunged to over 1-month lows of 6.8216 on the back of broader EUR weakness. Crude oil prices (CLU2 & LCOV2) Crude oil prices made a recovery overnight despite the strength in the US dollar. A global shift from gas to oil, from Europe to Asia, has taken a deeper hold amid gas shortage fears accelerating in the wake of another upcoming maintenance of the Nordstream pipeline. Diesel and refinery margins have also been supported as a result, with Asia diesel crack rising to its previous high of $63 amid low inventory levels. WTI futures reversed back to the $90/barrel levels and Brent were back above $96. Comments from Saudi Energy Minister threatening to dial back supply also lifted prices, but these were mis-read and in fact, focused more on the mismatch between the tightness in the futures and the physical market. Gold (XAUUSD) and Silver (XAGUSD) Gold broke below the key $1744 support and is now eying $1729, the 61.8% retracement of the July to August bounce. Dollar strength and a run higher in US yields weighed on the shine of the yellow metal, which has seen downside pressures since last week after touching the critical $1800-level. Hawkish Fed talk this week could further weigh on the short-term prospects for Gold. Silver also dipped below the key 19 handle, erasing most of the gains seen since late July.   What to consider? German year-ahead power prices hit a fresh record high German year-ahead power prices surged to EUR 700/MWh with Dutch TTF gas prices close to EUR 300/MWh. The surge came on the back of another leg higher in natural gas prices which rose over 8% in Europe amid concerns around the next scheduled 3-day maintenance of the Nordstream pipeline. It appears that demand destruction remains the most obvious but painful cure right now, along with a longer-term focus on ensuring a broad-based supply of energy from coal, gas, nuclear, solar, hydrogen, and more.  Australia and Japan services PMIs plunged into contraction Australia saw its services PMI drop to 49.6 in August in a flash print, from 50.9 in July. Manufacturing PMI, however, held up at 54.5, just weakening slightly from last month’s 55.7. The spate of rate hikes seen from Reserve Bank of Australia is likely taking its toll on demand and manufacturing. Meanwhile, prices remain elevated amid the persistent supply chain issues, and more rate hikes are still on the cards. Japan’s flash manufacturing PMI for August came in lower at 51.0 from 52.1 previously, nut stayed in expansion territory. Services PMI however plunged into the contraction zone below 50, coming in at 49.2 for a flash August print from 50.3 in July. The fresh COVID wave in Japan, although comes without any broad-based new restrictions, is impeding the services demand and will likely weigh on Q3 GDP growth. Europe and UK PMIs may spell further caution The Euro-area flash composite PMI and the UK flash PMI for August are both due to be released on Tuesday. Following a slide in ZEW and Sentix indicators for July, the stage is set for a weaker outcome on the PMIs too. July composite PMI for the Euro-area dipped into contractionary territory at 49.9, while the UK measure held up at 52.1. The surge in gas and electricity prices continue to weigh on GDP growth outlook, with recession likely to hit by the end of the year. China’s plan to provide loans to ensure delivery of presold residential projects is said to be of the size of RMB 200 billion Last Frida, Xinhua News reported that the PBoC, jointly with the Housing Ministry and the Ministry of Finance rolled out a program to make special loans through policy banks to support the delivery of stalled residential housing projects but the size of the program was not mentioned.   A Bloomberg report yesterday, citing “people familiar with the matter”, suggested the size of the support lending program could be as large as RMB 200 billion.  Beijing municipal government rolled out initiatives to promote hydrogen vehicles The municipal government of Beijing announced support for the construction of hydrogen vehicle refueling stations with RMB500 million for each station, aiming at building 37 new stations by 2023 and bringing the adoption of fuel-cell cars to over 10,000 units in the capital. Earlier in the month, the Guangdong province released a plan to build 200 hydrogen vehicle refueling stations by 2025. Since last year, there have been 13 provinces and municipalities rolling out policies to promote the development of the hydrogen vehicle industry.  Earnings on tap Reportedly there have been shorts being built up in Dollar Tree (DLTR:xnys) as traders are expecting that discount retailer missing when reporting this Thursday.   On the other hand, investors are expecting Dollar General (DG:xnys) results to come in more favourably, , which also reports this Thursday.  Key earnings scheduled to release today including Medtronic (MDT:xnys), Intuit (INTU:xnas), JD.COM (09618.xhkg/JD.xnas), JD Logistics (02615:xhkg), Kingsoft (02888:xhkg), and Kuishaou (01023:xhkg). Singapore reports July inflation figures today Singapore's inflation likely nudged higher in July, coming in close proximity to 7% levels from 6.7% y/y in June. While both food and fuel costs continue to create upside pressures on inflation, demand-side pressures are also increasing as the region moves away from virus curbs. House rentals are also running high due to high demand and delayed construction limiting supplies. The Monetary Authority of Singapore has tightened monetary policy but more tightening moves can be expected in H2 even as the growth outlook has been downwardly revised.     For a week-ahead look at markets – tune into our Saxo Spotlight. For a global look at markets – tune into our Podcast Source: APAC Daily Digest: What is happening in markets and what to consider next – August 23, 2022
Oil Rally Driven by Saudi and Russian Cuts Continues Amid Economic Considerations

"Futures Market Is Disconnected From Underlying Fundamental Developments," Said The Saudi Energy Minister

Saxo Strategy Team Saxo Strategy Team 24.08.2022 09:49
Summary:  US equities continued to push sharply lower yesterday as the strong US dollar is in focus as EURUSD dropped well below parity yesterday. US Treasury yields are playing their part in pressuring sentiment as the US 10-year yield benchmark rose above 3.00%. The next important event risk is this Friday’s Jackson Hole, Wyoming speech from Fed Chair Powell, as the Fed is expected to remind the market that it remains in full inflation-fighting mode, pushing back against the impression that it may be set to cut rates next year.   What is our trading focus? Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) S&P 500 futures extended their losses yesterday as the US 10-year yield moved above the 3% level and the Fed Funds futures curve moved lower across the whole curve (meaning less rate cuts expected next year). Markets are beginning to second-guess their aggressive bets in July on inflation cooling fast enough to warrant rate cuts next year as the galloping energy crisis makes it difficult for inflation to cool. Tangibles-driven themes such as commodities, logistics, energy storage and financials were the relative winners in yesterday’s session. S&P 500 futures are now in the support zone from before the last leg up that started on 10 August; we see the 4,100 level as the next level to watch on the downside and then the 100-day moving average at 4,085. Hong Kong’s Hang Seng (HSI.I) and China’s CSI300 (000300.I) Hang Seng Index and CSI300 were both down about 0.6%. A Bloomberg report yesterday, citing “people familiar with the matter”, suggested the size of the central bank and other authorities’ support lending program to developers could be as large as RMB 200bn. The reaction of the share prices of Chinese Property developers were mixed, Country Garden (02007:hkg) +3.1%, Longfor (00960:xhkg) -1.4%. Postal Savings Bank of China (01658:xhkg) plunged 5.5% after the Chinese bank reported net profit miss with a 10 bps y/y fall in net interest margin to 2.27% in H1. Gross loans grew 13% y/y in H1 but at a more tepid growth of 3% q/q.  Non-performing loans ratio overall was steady at 0.8% but mortgage NPL ratio climbed by 8 bps to 0.52%. US dollar rally following through The US dollar rally continued apace yesterday, as EURUSD traded well below parity and closed at its lowest level in nearly twenty years yesterday. GBPUSD has teased below 1.1760, its lowest level since a one-off pandemic-outbreak spike in early 2020, while other USD pairs are not yet at extremes of the cycle, including AUDUSD, still well above the sub-0.6700 lows of July, and USDJPY, which has not yet challenged the cycle high north of 139.00. There is clearly a reflexive situation at the moment in the US dollar, risk sentiment and US treasury yields. USDCNH Broad USD strength remains behind the weaker CNH in the USDCNH exchange rate as the CNH continues to rise versus, for example, the EUR, while the CNHJPY exchange rate trades near the important 20.00 area. Any more significant move in this critical exchange rate could quickly steal some of the focus away from the US dollar. The contrast between an easing PBOC (moving once again earlier this week) and tightening central banks nearly everywhere else is stark. The next important level for the pair is 7.00, with the range high of the last decade near 7.20. Crude oil prices (CLU2 & LCOV2) Crude oil prices made a sharp U-turn higher on Monday after the Saudi Energy Minister talked about a potential production cut after saying the futures market has become increasingly disconnected from underlying fundamental developments, a view that we share. His comment supported the market on a day where risk appetite generally took a knock from the stronger dollar and falling equity markets. A global shift from gas to oil, from Europe to Asia, has taken a deeper hold amid gas shortage fears accelerating in the wake of another upcoming maintenance of the Nord Stream 1 pipeline and heatwaves in China. Diesel prices trades higher supported by refinery margins, the so-called crack spread hitting seasonal highs around the world. Gold (XAUUSD) and Silver (XAGUSD) Gold broke below the key $1744 support on Monday before finding support at $1729, the 61.8% retracement of the July to August bounce. Dollar strength and a run higher in US yields weighed on the shine of the yellow metal, which has seen downside pressures since last week after touching the critical $1800-level. Hawkish Fed talk this week could further weigh on the short-term prospects for Gold. Silver also dipped below the key 19 handle, erasing most of the gains seen since late July. German year-ahead power prices hit a fresh record high German year-ahead power prices surged to EUR 700/MWh with Dutch TTF gas prices close to EUR 300/MWh. The surge came on the back of another leg higher in natural gas prices which rose over 13% in Europe amid concerns around the next scheduled 3-day maintenance of the Nord Stream 1 pipeline. It appears that demand destruction remains the most obvious but painful cure right now, along with a longer-term focus on ensuring a broad-based supply of energy from coal, gas, nuclear, solar, hydrogen, and more. US Treasuries (TLT, IEF) US treasury yields rose yesterday, with the 10-year benchmark closing above 3.00% for the first time in over a month yesterday. Rising yields are likely an important driver of weaker risk sentiment after the melt-up in the wake of the late July FOMC meeting, but practically, a move toward the cycle highs from June near 3.50% (in the lead-up to the FOMC meeting on June 16) is needed to seize the spotlight. The behavior of the treasury market in the wake of the Jackson Hole conference speech from fed Chair Powell this Friday is an important next step, particularly if Powell provides strong guidance on the pace or importance of the Fed’s balance sheet tightening (QT). What is going on? EURUSD falls below parity, eyes on 0.9500 The latest concerns on the European energy crisis weighed on the Euro which was seen sipping below parity to the US dollar. Higher US yields and gains in the US dollar also underpinned, taking EURUSD to lows in the low 0.9900’s this morning. The European recession is coming hard and fast, and the PMIs today will likely signal increasing pressure on the region. The next step for the US dollar is the Fed Chair Powell speech this Friday as discussed below. Australia and Japan services PMIs plunged into contraction Australia saw its services PMI drop to 49.6 in August in a flash print, from 50.9 in July. Manufacturing PMI, however, held up at 54.5, just weakening slightly from last month’s 55.7. The spate of rate hikes seen from Reserve Bank of Australia is likely taking its toll on demand and manufacturing. Meanwhile, prices remain elevated amid the persistent supply chain issues, and more rate hikes are still on the cards. Japan’s flash manufacturing PMI for August came in lower at 51.0 from 52.1 previously, nut stayed in expansion territory. Services PMI however plunged into the contraction zone below 50, coming in at 49.2 for a flash August print from 50.3 in July. The fresh COVID wave in Japan, although comes without any broad-based new restrictions, is impeding the services demand and will likely weigh on Q3 GDP growth. Palo Alto outlook remains strong The cyber security company reported last night Q4 revenue and EPS above estimates and Q1 outlook is slightly above estimates while the FY outlook is well above consensus estimates. Q4 networks billing growth was 44% vs est. 25% suggesting demand is accelerating and bolstering our view that the cyber security industry is a high growth and counter-cyclical industry in the years to come. Shares were up 9% in extended trading. Zoom shares were down 8% in extended trading The popular video conferencing software that rose to prominence during the pandemic is lowering its FY outlook relative to previous announcements. The slowdown in their business is due to slower enterprise growth which could be a function of Microsoft and other major technology companies that have entered the enterprise business for video conference. What are we watching next? Europe and UK PMIs may spell further caution. The Euro-area flash composite PMI and the UK flash PMI for August are both due to be released on Tuesday. Following a slide in ZEW and Sentix indicators for July, the stage is set for a weaker outcome on the PMIs too. July composite PMI for the Euro-area dipped into contractionary territory at 49.9, while the UK measure held up at 52.1. The surge in gas and electricity prices continue to weigh on GDP growth outlook, with recession likely to hit by the end of the year. USD and US Treasury yields as Jackson Hole Fed conference is the macro event risk of the week Friday The US dollar and yields are setting risk sentiment on edge as EURUSD has plunged well through parity. US Treasury yields have supported the USD rally with the entire curve lifting over the last couple of weeks and longer yields closing at new one-month highs. The Fed has pushed back consistently against the market’s pricing of a Fed turnaround to easing rates next year with partial success, as expectations for rate cuts have shifted farther out the curve and from higher levels. The next focus is this Friday’s Jackson Hole symposium speech from Fed Chair Powell, who is expected to stay on message and maintain credibility on fighting inflation after the two large 75 basis point hikes at the last two meetings. The Fed’s attitude toward quantitative tightening may be a focus in the speech as well, with the pace of QT supposedly set to pick up in coming weeks to $95B/month. So far, the QT has been slow out of the gates, with the balance sheet currently only some $115B smaller than at its mid-April peak. Earnings to watch Today’s earnings focus is on CATL and JD.com, with especially CATL being important as the world’s largest battery manufacturer to the car industry and thus pivotal for the electrification of the transportation sector. CATL is expected to report revenue growth of 126% y/y in Q2 as EV adoption is accelerating, but key risks ahead are rising input costs across lithium and energy. JD.com is expected to report 3% revenue growth in Q2 as growth is grinding to a halt on very weak consumer confidence in China. Today: CATL, Intuit, Medtronic, JD.com Wednesday: LONGi Green Energy, Royal Bank of Canada, PetroChina, Ping An Insurance Group, Nongfu Spring, Mowi, Nvidia, Salesforce, Pinduoduo, Snowflake, Autodesk Thursday: South32, Toronto-Dominion Bank, Fortum, Delivery Hero, AIA Group, China Life Insurance, CNOOC, CRH, Dollar General, Vmware, Marvell Technology, Workday, Dollar Tree, Dell Technologies, NIO Friday: Meituan, China Shenhua Energy, China Petroleum & Chemical Economic calendar highlights for today (times GMT) 0715-0800 – Eurozone Aug. Flash Manufacturing and Services PMI 0830 – UK Aug. Flash Manufacturing and Services PMI 1000 – UK Aug. CBI Trends in Total Orders and Selling Prices 1100 – ECB's Panetta to speak 1345 – US Aug. Flash Manufacturing and Services PMI 1400 – US Aug. Richmond Fed Manufacturing 1400 – Eurozone Aug. Flash Consumer Confidence 1400 – US Jul. New Home Sales 2300 – US Fed’s Kashkari (non-voter) to speak  Follow SaxoStrats on the daily Saxo Markets Call on your favorite podcast app: Apple  Spotify PodBean Sticher   Source: Financial Markets Today: Quick Take – August 23, 2022
Gold Is Showing A Good Sign For Further Drop

The Near Future Of Gold Price Is Said To Depend On Jerome Powell's (FED) Rhetoric

Craig Erlam Craig Erlam 24.08.2022 15:23
Bearish case severely weakened by Saudi comments Oil prices are higher again this morning, supported once more by reports that OPEC+ could consider cutting output. While this may simply be a case of Saudi Arabia talking up the price, for now, the prospect of the group taking such action effectively removes two of the biggest downside risks for prices. An Iran nuclear deal was explicitly referenced so if any deal is announced in the coming weeks, it will be interesting to see what the impact on the price will now be and how quickly OPEC+ reacts. The global slowdown is another factor that has weighed on the price and it seems that could also trigger lower production. With that in mind, there isn’t a huge amount holding the price back now. It seems OPEC+ is determined to see the oil price in triple-figures despite the serious headwinds facing the global economy. Helping the price higher are reports of another hit to supplies from Kazakhstan via the Caspian Pipeline Consortium (CPC) Black Sea terminal. This isn’t the first time that flows from the country through Russia have been disrupted this year and with the outage set to last at least a month, it’s another unwelcome loss. European gas prices are rising again today amid ongoing nerves over new maintenance work to Nord Stream 1 next week. The disruption is set to last three days but the fear is that it could become much longer. Freeport LNG has also pushed back its restart date to mid-November which is another blow to the bloc as it tries to wean itself off Russian gas. Struggling to recover amid a strong dollar Gold is already seeing some resistance after a minor recovery on Tuesday. The dollar has soared higher over the last couple of weeks alongside a bump in US yields and gold has been hit as a result. The greenback pared gains yesterday bringing some reprieve for the yellow metal but it didn’t last long and it’s marching higher once more. Whether gold breaks $1,730 or not may well depend on what Jerome Powell has to say later in the week as well as whether traders are in the mood to listen, should he stick to his colleague’s hawkish script. For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/ This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Oil moves higher, gold under pressure - MarketPulseMarketPulse
Russia's Active Production Cuts Could Be Grounds For A Bullish Shock

XAUUSD: Price Of Gold Amid Jackson Hole Meeting | Crude Oil Prices

Ed Moya Ed Moya 24.08.2022 23:42
Oil poised to rise Despite global recession fears, oil prices are poised to be supported as energy investments have been depressed. â€‹ The tug-of-war between crude demand destruction and a plethora of drivers on why the oil market will remain tight should still suggest prices won’t fall much lower. Oil’s outlook still looks positive here as shale is not taking off, ESG constraints remain, and strong demand for refined product exports. ​ US stockpiles will likely continue to decline over the coming weeks over strong export demand. â€‹ Oil prices could surge over the next few weeks if OPEC+ is forced to cut output and if Iran nuclear deal talks falter again. â€‹ The Saudis don’t want to see oil prices disconnected from market fundamentals and that should suggest this oil market will remain very tight. â€‹ Crude prices dipped after the EIA crude oil inventory report showed a dip with exports and as gasoline demand reversed. â€‹ Optimism for an Iran nuclear deal revival is growing and that is also weighing on prices today. The longer-term outlook for oil is still much higher as the writing is on the wall for energy costs to be very high this winter especially as the risk for further disruptions remains elevated. â€‹ Energy traders saw prices get a boost after cracks were found with the key route for exporting crude from Kazakhstan to international markets. â€‹ It will take a month to replace the broken parts and they still have to find a contractor. Gold Gold firmed up after the dollar softened in what is a very low volume trading session. ​ Gold’s slide might not be over, but no one wants to aggressively be short right now. ​ Gold is forming its pre-Jackson Hole range and it looks like it could be in the $1740 to $1780 zone. Post Jackson Hole, traders should know enough as to whether the rise in yields continues and that will dictate what happens with gold. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Oil's outlook, gold steadies - MarketPulseMarketPulse
Bitcoin Has Strong Sign That Buyers Are In Control

Nvidia Stocks Dived 4,5 % In The Afterhours Trading! Swissquote

Swissquote Bank Swissquote Bank 25.08.2022 12:13
Nvidia earnings released after the market close were in line with the downside-adjusted market expectations, but the current quarter sales forecast fell $1 billion short of expectations. Nvidia stock dived 4.5% in the afterhours trading, and brought forward the pricing of the ‘end of the chip shortage’. But, it is still too early to call the end of the rare chips, as chips for industrial use, cars and machineries remain difficult to find. Here is, as promised, more on that subject: https://medium.com/swissquote-educati... Elsewhere, stocks were flat yesterday. Even though the US futures are up this morning, the direction remains unclear, and conviction low before the much-expected Jerome Powell speech at the Jackson Hole meeting in the coming hours. The dollar is off the early-week peak, gold and Bitcoin consolidate, while crude oil is preparing to test the 200-DMA to the upside. Hence, energy stocks extend gains along with nat gas and nuclear stocks! Watch the full episode to find out more! 0:00 Intro 0:27 Nvidia’s sales forecast falls $1 billion short of expectations! 1:40 Is the chip shortage over yet? 2:40 Market update 3:56 Crude up, oil, nat gas & nuclear stocks race to the top 6:46 USD softer, EUR firmer before ECB minutes 8:00 Gold & Bitcoin traders await Powell speech for direction Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020. #Nvidia #chip #shortage #Fed #Jerome #Powell #JacksonHole #enegry #crisis #crude #oil #natural #gas #nuclear #stocks #USD #EUR #ECB #minutes #XAU #Gold #Bitcoin #SPX #Dow #Nasdaq #investing #trading #equities #stocks #cryptocurrencies #FX #bonds #markets #news #Swissquote #MarketTalk #marketanalysis #marketcommentary ___ Learn the fundamentals of trading at your own pace with Swissquote's Education Center. Discover our online courses, webinars and eBooks: https://swq.ch/wr ___ Discover our brand and philosophy: https://swq.ch/wq Learn more about our employees: https://swq.ch/d5 ___ Let's stay connected: LinkedIn: https://swq.ch/cH   Source: Nvidia upsets, again. But chip shortage is not over yet! | MarketTalk: What’s up today? | Swissquote
Forex: XAU/USD Is Rising For The 3rd Day In A Row!

Forex: XAU/USD Is Rising For The 3rd Day In A Row!

InstaForex Analysis InstaForex Analysis 25.08.2022 18:02
Relevance up to 13:00 2022-08-27 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. Amid a weakening dollar and growing risks of a recession in the US and the global economy, gold quotes have again turned to growth. XAU/USD is rising for the 3rd day in a row today and is trading near 1764.00 as of this writing, in close proximity to the strong resistance level at 1766.00 (200 EMA on the 4-hour chart). In case of its breakdown, the important resistance level of 1775.00 (50 EMA on the daily chart) becomes the target, the breakdown of which will increase the probability of further corrective growth towards the key resistance levels of 1800.00, 1819.00 (200 EMA on the daily chart). Their breakdown will confirm the return of XAU/USD to the long-term bull market zone. In an alternative scenario, there will be a rebound from the resistance level of 1766.00, and the XAU/USD pair will resume its decline. The first signal to open short positions will be a breakdown of the important short-term support level of 1757.00 (200 EMA on the 1-hour chart). A breakdown of the key support level of 1690.00 (200 EMA on the weekly chart) will cause XAU/USD to enter the long-term bear market zone. Support levels: 1757.00, 1748.00, 1700.00, 1690.00, 1682.00 Resistance levels: 1766.00, 1775.00, 1800.00, 1819.00, 1832.00, 1875.00 Trading Tips Sell Stop 1755.00. Stop-Loss 1770.00. Take-Profit 1748.00, 1700.00, 1690.00, 1682.00 Buy Stop 1770.00. Stop-Loss 1755.00. Take-Profit 1775.00, 1800.00, 1819.00, 1832.00, 1875.00 Source: Forex Analysis & Reviews: XAU/USD Technical Analysis and Trading Tips for August 25, 2022
Gold Indicated A Decrease In Prices, Does Gold Should Be Buy Or Sell Today?

Forex: Gold Prices Will Still Rise Before The Speech

InstaForex Analysis InstaForex Analysis 26.08.2022 13:14
Relevance up to 11:00 2022-08-27 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. According to one market strategist, gold prices will still rise even if Federal Reserve Chairman Jerome Powell is hawkish in his highly anticipated speech on Friday at the annual central bank symposium in Jackson Hole. Invesco Chief Global Market Strategist Kristina Hooper said there is no reason why investors should not expect Powell to signal that the central bank will maintain its aggressive monetary stance. However, Hooper reiterated that it was just talk. The hawkish stance in August does not prevent the central bank from changing interest rates at the next meeting on the decision on monetary policy on September 21. There is considerable uncertainty about the next move by the US central bank. Markets assume a 50/50 chance that the Federal Reserve will raise the federal funds rate by either 50 or 75 basis points. According to Hooper, the central bank will raise interest rates by 50 basis points, which will mean a turn in its monetary policy. The CME FedWatch tool showed that year-end interest rate forecasts will range from 3.75% to 4.00%. However, Hooper believes that by the end of the year, interest rates will rise to just 3% or even lower. One of the important long-term problems is the growing public debt and deficit. On Wednesday, President Joe Biden announced a program to write off student loans. The government will forgive up to $10,000 in federal student loans for borrowers with incomes of less than $125,000. At the same time, the government will waive up to $20,000 for Pell Grants recipients. The National Taxpayers Union estimates that the loan write-off program could cost the government more than $329 billion over ten years. With the central bank expected to start a slow reversal in September, analysts say the current price of gold could be an attractive entry point for investors. Even though interest rates will continue to rise, at least for now, investors still have other reasons to hold some precious metals. And while gold price performance has been disappointing for most of the year, investors should ignore short-term price action and focus on long-term potential. The most compelling reason to hold gold is diversification. Source: Forex Analysis & Reviews: What will gold prices be like under hawkish Powell?  
The British Pound Faces Further Breakdown Amidst Dollar Strength and Government Shutdown Risks

USD: Would Jerome Powell (Fed) Spill The Tea About On The Interest Rate Decision?

Ed Moya Ed Moya 25.08.2022 22:49
Oil Crude prices initially edged higher as we get further reports that OPEC+ is seriously considering lowering production and after the latest round of US economic data and Fed speak suggests the economy is still in a good position to handle more rate increases. Oil will start to form a key trading range until Fed Chair Powell’s speech at Jackson Hole. We could get a major move in the dollar post-Powell and that could trigger a major one-way move for commodities. ​ The oil fundamentals still support crude prices to make a move above the $100 a barrel level, but first, we will have to wait-and-see if the dollar cooperates. Oil is seesawing ahead of Jackson Hole and that will probably continue until we hear from Fed Chair Powell. ​ Gold Gold got a limited boost as the dollar softened ahead of Fed Chair Powell’s speech at Jackson Hole. ​ Another round of US economic data and Fed speak supported the idea that the Fed will remain aggressive tightening policy until inflation is under control. ​ Investors want to see if Fed Chair Powell locks the Fed in for another massive 75 basis point rate increase in September, but he will likely stick to the data-dependency script and leave it up to the September 13th inflation report. Gold will likely consolidate between the $1750 to $1780 zone leading up to Fed Chair Powell’s speech. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Oil seesaws, gold edges higher - MarketPulseMarketPulse
Global Markets Shaken as Yields Soar: Dollar Surges, Stocks Slump, and Gold Holds Ground Amid Debt Concerns and Rate Hike Expectations

Markets Are Digesting Hawkish Signal Which Is Able To Boost US Dollar (USD)

Craig Erlam Craig Erlam 26.08.2022 14:39
Oil steadies around $100 Oil prices are a little higher, with Brent hovering around $100 a barrel and WTI above $93. It’s been well supported this week by comments from Saudi Arabia Energy Minister Abdulaziz bin Salman, who claimed there’s a disconnect between market pricing and fundamentals, suggesting OPEC+ could cut output in the future. Suddenly the prospect of a nuclear deal between the US and Iran, or a global growth slowdown, isn’t quite the bearish development for oil that many hoped. Although in reality, the group was never going to sit back and watch the price tumble as the world was flooded with extra oil or demand growth stalled. Gold still holds hope of $1,800 Gold is pulling back again ahead of Jerome Powell’s speech later on. A hawkish message that actually gets through to the markets could be a blow to the yellow metal as it may lift the dollar and US yields which have typically not been positive for it. That said, investors have been far more open to any remotely dovish message so this could be far more impactful and potentially bullish for gold, which will still have an eye on $1,800. A move lower could see support tested around $1,730. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Oil stable at $100, gold eyes Powell speech - MarketPulseMarketPulse
Unraveling the Resilience: US Growth, Corporate Debt, and Market Surprises in 2023

Bullish And Bearish Experts Voted. The Result Is Here!

InstaForex Analysis InstaForex Analysis 29.08.2022 16:54
Relevance up to 09:00 2022-08-31 UTC+2 The Fed's monetary policy remains aggressive, putting pressure on gold following the long-anticipated speech by Fed chairman Jerome Powell at the central bank symposium in Jackson Hole, Wyoming. Powell reiterated that interest rates hikes must continue as inflation remains the biggest threat to the economy. However, some analysts believe that falling inflationary pressure could prompt markets to price in less aggressive moves from the Federal Reserve, which would weaken the US dollar and give support to gold. According to the data released by the US Commerce Department on Friday, its core Personal Consumption Expenditures Index (PCE) increased by 4.6% in July, down from June's annual increase of 4.8%. The CME FedWatch Tool is showing that markets are currently split 50/50 on whether the Federal Reserve would increase interest rates by 50 or 75 basis points in September. A weekly survey by Kitco indicates that Wall Street is largely mixed on gold. Out of 16 surveyed experts, 6 (38%) were bullish, 6 were bearish, and 4 (25%) were neutral. Retail investors were more optimistic, with 53% of respondents seeing gold prices rise. 27% expected gold to drop, while 20% were neutral. In total, 561 votes were cast. Although market sentiment doesn't create a clear path for gold, US interest rates remain the most important factor for the precious metal. If inflation continues to decline, the Federal Reserve will begin to slow down the pace of interest rates hikes. Falling gold prices at the end of last week have led to mixed sentiment in the market. Colin Cieszynski, chief market strategist at SIA Wealth Management Inc, said he is bullish on gold next week as Powell's comments didn't add anything new to the current outlook. "He didn't really say much that was new and noteworthy enough to push treasury yields or USD higher in the short term," Cieszynski said. "The US dollar is looking exhausted technically as it is and due for a correction, which could take some of the recent pressure off of gold." Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.   Source: Forex Analysis & Reviews: Gold faces difficulties after Jerome Powell's remarks in Jackson Hole
Swiss Pension Fund Publica Will Increase Its Share Of Gold To 1%

Commodities: Gold Amid Stopped Rise Of US Dollar (USD)

Ed Moya Ed Moya 29.08.2022 21:55
Gold edges higher as dollar rally halts Non-interest-bearing gold got crushed early as more global central bank rate hikes are getting priced in. ​ Gold is edging higher as the dollar rally halted as the euro rises on expectations the ECB will deliver more rate hikes than investors initially thought. ​ If the dollar does not rally here, that could provide some relief for gold. ​ If equities remain in risk aversion mode as the speculative money that bought risky assets this month grows nervous that economic growth is about to collapse, gold might be able to stabilize here. ​ Gold was vulnerable to a plunge towards $1700 but it is starting to show some resilience. â€‹ With the UK on holiday, today’s moves might be meaningless. â€‹ The true test for gold will come tomorrow. â€‹ Oil The one trade that everyone can agree upon is that the oil market will likely remain tight. â€‹ Oil rallied on rising risks of a potential civil war that could put Libyan output at risk and over growing expectations that OPEC+ is positioning themselves to cut production. â€‹ What is also helping oil today is that despite risk aversion running wild, the dollar rally is on hold. â€‹ Oil has been trending lower but the supply side risks are too great and prices need to find a home above the $100 a barrel level. â€‹ This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Gold benefits on dollar rally break, oil rises - MarketPulseMarketPulse
The Gold Rally Is Continuing To Stall, This Could Be A Good Year For Crude Oil

Gold Is Failing To Bounce Back, Crude Oil Prices Are Lower And Lower

Craig Erlam Craig Erlam 30.08.2022 16:14
Saudi Arabia reinforces support Oil prices are easing a little with Brent potentially settling around $100 and WTI a little below around $95. While there remain many moving parts in the oil market at the moment, the comments last week from Saudi Arabia have reinforced support below the current price. It seems OPEC+ isn’t interested in the oil price slipping much below $100 a barrel and while those warnings would be put to the test in the event of a nuclear deal, which still looks very challenging, or a global recession, the words alone could keep prices high for now. Gold failing to bounce back Gold continues to struggle in the aftermath of Powell’s comments on Friday, even though the dollar is falling on Tuesday and US yields are a little lower. The yellow metal continues to test $1,730 today, a sign that not all are on board with the recovery trade we’re seeing elsewhere. A significant break of $1,730 would be a real blow for gold, with the next area of notable support falling around $1,680-$1,700. A move back above $1,765 could get gold bulls excited once more but that may be easier said than done if trading over the last few sessions is anything to go by. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.   Source: Oil prices dip, gold under pressure
Where Are Dollar (USD) And Gold (XAUUSD) At The End Of The Summer

Where Are Dollar (USD) And Gold (XAUUSD) At The End Of The Summer

Conotoxia Comments Conotoxia Comments 31.08.2022 12:27
The end of the month is often a time for summaries. In addition, the end of August is also the end of the vacations - how hot, not only in the weather but also in the economy and financial markets. So let's turn to a brief summary of events and possible prospects for the fall and winter. From the point of view of the financial markets, the main topic seems to be where interest rates in the United States will go in time for the end of the year and where they will be next year. At the moment, the market seems to be pricing the possibility of a rate hike on September 21 by 75 bps at almost 70 percent. Thus, the range for the Fed rate could rise to 3.00-3.25 percent. This, according to investors, may not be the end of the hike cycle. This one may end at 3.75-4.00 percent, a range that could be reached in early 2023. The rise in expectations for rate hikes in the US may have affected the US dollar and gold prices recently. The USD index appears to have completed its third consecutive month of gains in August. Since the beginning of the month alone, the EUR to USD seems to have lost more than 2 percent, and the British pound more than 4 percent, while looking at the change in rates since August 2022, the EUR and GBP could lose around 15 percent, being the weakest currencies among the world's major currencies, except for the Japanese yen, which seems to have recorded a loss of 20 percent in a year. The currencies that could lose the least to the USD on a monthly and yearly basis seem to be AUD and CAD. It looks like the strong dollar and relatively high expectations of interest rate hikes by the Fed may be leaving their mark on the gold market. The price of bullion appears to have fallen for the fifth month in a row. In August alone, gold may have declined by 2.75 percent, while in relation to the summer of last year, the price drop may be more than 4.5 percent. This still seems to be a small slide in relation to silver prices, which may be 23 percent lower on an annual basis. How the USD and the market's pricing in it may behave in the fall remains an open question. On the one hand, the hiking cycle by the Fed may already be fairly well priced by the market. In addition, rate hikes in the Eurozone, the UK or Australia may be more aggressive than in the US, which from an interest rate perspective could support the EUR, GBP and AUD. However, especially for the former two currencies, the other side remains - the energy crisis. In this situation, interest rates alone may not help if gas or electricity has to be rationed. Nevertheless, for the moment, when the market may be discounting the worst-case scenario for Europe, a new catalyst would be needed in the US, to support the USD this fall. Daniel Kostecki, Director of the Polish branch of Conotoxia Ltd. (Conotoxia investment service) Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.59% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.   Source: Dollar with the third month of gains. Gold with the fifth month of declines
Gold Stocks Have Performed Very Well Under Pressure

The Oil Market Remains Volatile. The Value Of Gold Continues To Decline

Kenny Fisher Kenny Fisher 31.08.2022 15:28
Oil edges lower but Saudi comments are still supportive Oil prices are a little lower again for a second day after spiking earlier in the week. It’s a little indicative of the mood in the rest of the markets at the moment and the lack of certainty. Prices jumped earlier in the week as traders weighed up the potential for supply disruptions from Libya and Iraq, while the threats of production cuts from Saudi Arabia continued to echo. They’ve since pulled back amid reports that an OPEC+ cut is not under consideration next week and as broader risk markets turned south. Economic concerns remain and may ensure trade continues to be volatile. API also reported a small inventory build on Tuesday, while a small draw is expected from EIA later today. Given previous comments from Saudi Arabia, any significant pullback from $100 may be challenging. Gold is on the decline once more Gold is slipping again on Wednesday, this time aided by the dollar which is rallying once more. Traders are becoming increasingly convinced that the Fed will hike rates by 75 basis points next month, despite the improvement in the inflation data. The message is finally getting through from the Fed and barring another significant improvement in August and/or any sign of slack appearing in the labour market, it may now have to deliver. It’s worked so hard to convince traders that it must continue tightening aggressively that to then only do so by 50 basis points would seriously undermine trust in its communication and guidance. Policymakers have backed themselves into a corner and may now have to deliver. With $1,730 now broken, attention shifts back to $1,700 and $1,680. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Unraveling the Resilience: US Growth, Corporate Debt, and Market Surprises in 2023

Forex: XAU/USD - Bull And Bear Are Searching For Gold

InstaForex Analysis InstaForex Analysis 31.08.2022 17:51
Relevance up to 15:00 UTC+2 The dollar remains positive, while its DXY index remains near the resistance level of 109.00. Earlier this week, DXY broke last month's high at 109.14 and touched a new local high since October 2002 at 109.44. The tough rhetoric of Federal Reserve Chairman Jerome Powell regarding the prospects for monetary policy of the American central bank gave the dollar a new bullish momentum. During his speech at the Jackson Hole symposium last Friday, he reaffirmed that the Fed's priority goal is to fight high inflation, and "the Fed should continue like this until the job is done." At the same time, "restoring price stability will take some time and will require the decisive use of central bank instruments." In other words, the tight cycle of Fed monetary policy tightening will continue for now, perhaps even at the same pace. Thus, the trend of further strengthening of the dollar remains. Meanwhile, the price of gold continues to decline amid a strengthening dollar. Today, XAU/USD hit a new 6-week low at 1.1710, falling towards key support levels at 1700.00, 1690.00, 1682.00. As you know, gold quotes are extremely sensitive to changes in the monetary policy of the world's leading central banks and, especially, the Fed. However, the other major world central banks (BoE, RBA, RBNZ) are also on the path of tightening their monetary policies, and the ECB will soon join them. Despite the high risks of a recession in the economy, the fight against inflation remains a key issue for them. Gold does not bring investment income but is in active demand during geopolitical and economic uncertainty, and a protective asset in the face of rising inflation. Now is just such a moment. However, it seems that it is losing its role as a protective asset to the dollar, and in the event of a breakdown of the zone of long-term support levels of 1700.00, 1690.00, 1682.00, the long-term bullish trend of gold and the XAU/USD pair may be in jeopardy. It is hard to believe so far, but the fundamental and technical picture is still in favor of just such a scenario. On Friday, the publication of key macroeconomic statistics for the United States is expected. At 12:30 (GMT), data on the US labor market for August will be published. The positive momentum of recovery is expected to continue, which allows Fed officials to continue to fight inflation at an accelerated pace, which is bullish for the dollar and bearish for gold prices. Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. Source: Forex Analysis & Reviews: XAU/USD: Bullish and bearish factors
Assessing China's Economic Challenges: A Closer Look Beyond the Japanification Hypothesis"

US Close: Another strong employment report, Wages growth slows, Stocks volatile, Oil rallies, Gold steadies

Ed Moya Ed Moya 06.05.2022 23:33
US stocks appear to be on a permanent rollercoaster ride as investors debate continued signs of a strong economy alongside rising rates, which remains a drag on higher valuation companies. For Wall Street to remain fully confident in piling back into stocks, inflation needs to be showing signs it is easing and that is not happening yet. ​ ​   Market conditions look dangerous but some of these discounts are looking very attractive. ​ It seems that the base case is still that the inflation peak is in place and that the Fed will look to signal a gradual tightening path. Unless inflation shocks prove otherwise, the risk-reward ratios for some of the beloved mega-cap tech stocks are looking attractive. ​ It won’t happen immediately, but when the economy starts to show signs of weakness, that will give investors the green light to buy stocks.   Investors just can’t confidently buy stocks as too much uncertainty persists with what will happen with global growth and how far the Fed will take tightening beyond the summer. ​   NFP The US labor market remains strong as broadbased hiring continues. The economy added 428,000 in April, much more than the analysts estimate of 380,000, also matching the slight downward revision in the prior month. Wage pressures might be showing signs of easing as average hourly earnings ticked lower. ​ Still most signs suggest the labor market is tight and that wage pressures are not quite ready to post a meaningful drop. ​ ​ The labor market remains robust and that should keep the Fed’s half-point tightening on cruise control until the Jackson Hole Symposium.   Oil Crude prices just want to head higher as energy traders completely fixate over the looming European sanctions on Russian oil. ​ No one wants to be on the wrong side of a major crude supply disruption headline, so whatever oil price dips that happen will be short-lived. ​ US oil rig counts continue to rise, but that has not led to increased production. ​ The weekly Baker Hughes report showed oil rig counts rose by 5 to 557 rigs. ​   Gold Gold prices are still licking their wounds following the bond market selloff. ​ Eventually investors will need additional safe-havens, so gold might start to attract some flows if the dollar softens as the global bond market selloff extends. The dollar is slightly softer today, but that doesn’t mean it is ready to lose its crown. ​ Gold could still remain vulnerable to further downward pressure if inflation does not show further signs of peaking next. ​   Gold is trending right between the 50- and -200 day simple moving averages but still looks like it isn’t quite ready to rally. ​ Next week will be pivotal for inflation expectations and for Fed speak that could confirm their commitment to tightening by half a point per meeting until the Jackson Hole Symposium. ​   Read on Oanda This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Gold Price: The Tendency May Be Caused By Hawkish Fed

Gold Price: The Tendency May Be Caused By Hawkish Fed

Alex Kuptsikevich Alex Kuptsikevich 01.09.2022 20:24
The gold price dipped below $1700 on Thursday, approaching the lower boundary of its trading range since May 2020. Gold has been finding buyers after emotional dips towards the lower boundary throughout this period. Perhaps the main reason for the long-term bearish sentiment is the hawkish US monetary policy. A sharp tightening of policy and the Fed's promises to raise interest rates have pushed 2-year government bond yields to levels last seen in 2007. High short-term bond yields push investors away from alternatives such as gold, equities and emerging market currencies, raising the risk-free interest rate level - an informal benchmark for risk assessment. So far, gold has behaved in a frighteningly similar way to the dynamics of 2010-2013, when we saw a comparable bump at the top after a multi-year rally. Now, this period of consolidation after the rally has been longer. However, we should be prepared for a "dam break" if we see a decisive move down from the established corridor over the next few weeks. If the price breaks below $1680 this week or next, the market could see an absolute surrender of position traders, who have been betting on another bounce from the lower boundary. In that case, we should be prepared for gold to go into the same multi-year bearish trend as it did in 2012-2015. Just below, through $1670 passes the 200-week moving average, a fixing under which could trigger the capitulation of the most resilient long-term betting bulls. In that case, a decline towards $1300 would be a working scenario until the end of 2023. If the gold finds support, as it has done so many times in the past two-plus years, we could see a new upside surge after a two-year consolidation, and the 200-week average retains the long-term support it has enjoyed for the past five years.
Brent hits one-month high! Saudi and Russian cuts supporting recent moves

Increases on the New York Stock Market. Fall In Raw Materials

InstaForex Analysis InstaForex Analysis 02.09.2022 08:42
At the close of the New York Stock Exchange, the Dow Jones rose 0.46%, the S&P 500 rose 0.30%, and the NASDAQ Composite fell 0.26%. The leading performer among the components of the Dow Jones index today was Johnson & Johnson, which gained 4.00 points or 2.48% to close at 165.34. Amgen Inc rose 5.20 points or 2.16% to close at 245.50. Merck & Company Inc rose 1.79 points or 2.10% to close at 87.15. The losers were Boeing Co shares, which lost 6.59 points or 4.11% to end the session at 153.66. Dow Inc. gained 2.04% or 1.04 points to close at 49.96, while Salesforce.com Inc shed 1.66% or 2.59 points to close at 153. .53. Leading gainers among the S&P 500 index components in today's trading were DXC Technology Co, which rose 7.75% to hit 26.70, General Holdings Inc, which gained 5.72% to close at 233.01, and also Moderna Inc, which rose 5.05% to end the session at 138.95. The losers were shares of NVIDIA Corporation, which lost 7.67% to close at 139.37. Shares of Hormel Foods Corporation shed 6.56% to end the session at 46.98. Quotes of Monolithic Power Systems Inc decreased in price by 6.11% to 425.47. Leading gainers among the components of the NASDAQ Composite in today's trading were Hempacco Co Inc, which rose 63.41% to hit 8.35, GigaCloud Technology Inc, which gained 61.43% to close at 23.65, and also shares of Virax Biolabs Group Ltd, which rose 58.69% to end the session at 5.57. American Virtual Cloud Technologies Inc was the biggest loser, shedding 52.17% to close at 0.22. Shares of Newage Inc lost 46.87% and ended the session at 0.12. Quotes of Okta Inc decreased in price by 33.70% to 60.60. On the New York Stock Exchange, the number of securities that fell in price (2231) exceeded the number of those that closed in positive territory (901), while quotes of 101 shares remained virtually unchanged. On the NASDAQ stock exchange, 2,416 companies fell in price, 1,333 rose, and 244 remained at the level of the previous close. The CBOE Volatility Index, which is based on S&P 500 options trading, fell 1.20% to 25.56. Gold futures for December delivery lost 1.13%, or 19.55, to hit $1.00 a troy ounce. In other commodities, WTI October futures fell 3.54%, or 3.17, to $86.38 a barrel. Brent oil futures for November delivery fell 3.71%, or 3.55, to $92.09 a barrel. Meanwhile, in the Forex market, EUR/USD fell 1.11% to hit 0.99, while USD/JPY edged up 0.89% to hit 140.20. Futures on the USD index rose 0.91% to 109.65.         Relevance up to 04:00 2022-09-03 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. Read more: https://www.instaforex.eu/forex_analysis/291092
Gold Has A Chance For The Rejection Of The Support

Gold And Employment. How The XAU/USD Pair Will Behave Today?

InstaForex Analysis InstaForex Analysis 02.09.2022 09:55
Early in the European session, Gold (XAU/USD) is trading at around 1,697. We can see the 2/8 Murray zone as strong support for gold. If the asset manages to consolidate above this level, we can expect a bullish acceleration towards the top of the downtrend channel which has been developing since August 22nd. Yesterday in the American session, XAU/USD fell to a low of 1,688.65, due to US initial claims for unemployment benefits, reaching the highest level since April. Another factor that could exert pressure on gold is expectations that the FED will raise its interest rate by 0.75% at its next meeting in September. In case gold breaks below 1,687, it could hit a 2021 low of around 1,675. A recovery above 1,702 and a consolidation above the downtrend channel would ease downside pressures. XAU/USD is trading above 2/8 Murray (1,687) and below the 21 SMA located at 1,717. Gold is expected to trade within this range in the coming hours pending US employment data. Nonfarm payrolls could give strong volatility to the market. In the next few hours, gold is expected to break and consolidate above 3/8 Murray (1,718). If the price of gold remains above this level, it could mean an acceleration to the upside and the metal could reach the top of the downtrend channel at around 1,730 which has been formed since early August. Since August 22nd, the eagle indicator is showing a slightly bullish signal and a positive divergence. If it consolidates above this level in the next few hours, it could continue to give gold a positive signal and the precious metal could reach the 200 EMA located at 1,755. In case gold breaks and consolidates below 1,685, we should avoid buying as the bearish cycle is likely to resume again and the price could reach the psychological level of 1,650. On the other hand, as long as gold trades above 2/8 Murray, it will be a buying opportunity with targets at 1,717, 1,735, and 4/8 Murray around 1,750.       Relevance up to 06:00 2022-09-07 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. Read more: https://www.instaforex.eu/forex_analysis/291104
Gold Stocks Have Performed Very Well Under Pressure

Situation On The Commodities Market, Take A Closer Look At Gold And Oil

Kenny Fisher Kenny Fisher 02.09.2022 13:44
JCPOA talks seemingly stall but Macron remains confident Oil prices are higher today after falling close to their summer lows over the course of the week. The rebound comes as nuclear talks between Iran and the US appear to have stalled, with the former claiming they had sent a “constructive” response to proposals and the latter quickly deeming them “not constructive”. While Macron remains hopeful that a deal can be concluded in the coming days, I’m not sure everyone else shares his optimism. If a deal on the JCPOA is reached, that will make next week’s OPEC+ meeting all the more interesting. A deal has been a big downside risk for oil prices recently, something Saudi Arabia sought to counter with warnings of production cuts from the alliance. When and how they would respond isn’t clear but it would certainly create some uncertainty around the meeting. A major breakout is potentially on the cards Gold is really struggling amid growing expectations of another 75 basis point rate hike from the Fed this month. After breaking below $1,730 earlier in the week, it didn’t take long for the yellow metal to test support at $1,700, even breaching it briefly yesterday. A strong jobs report today could tip it over the edge, with key support below then coming around $1,680 where it rebounded in July. It has also bottomed here on a few occasions over the last couple of years which adds to its significance as a major support level. For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/ This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Prices Of Gold Rose For The Third Straight Session

The XAU/USD Pair: The Yellow Metal Was Tripped Up

InstaForex Analysis InstaForex Analysis 05.09.2022 11:51
In the rivalry between two reliable defensive assets, namely gold and the US currency, the concept of victory remains vague. Sometimes the yellow metal wins, and the dollar sags for a short time, and vice versa. At the same time, gold remains the leader in terms of purchases and often bypasses USD in the list of safe haven assets. According to analysts, in the near future, the yellow metal is waiting for new lows, although in the short term, gold holds a fairly strong position. According to current reports, gold periodically falls into a bearish trend. Over the past three weeks, major market players have been reducing their positions on the growth of the precious metal and allowing a breakdown of the support level near $1,700. At the same time, the cost of gold has significantly decreased for three consecutive sessions.The price of the yellow metal slightly exceeded $1,720 per 1 troy ounce on Monday morning, September 5, maintaining the previous week's trend. The potential appreciation of the precious metal is holding back the rising dollar, and the energy crisis in Europe is supporting demand for this safe haven asset. At the beginning of the new week, the XAU/USD pair was trading in the range of $1721.90-$1722, trying to go beyond it. Currently, major hedge funds have increased their sales of gold (by 5% over the past week) and reduced the volume of its purchases. The strengthening of this trend contributes to the further subsidence of the precious metal, experts warn. Recall that this year, gold has experienced a long decline amid a series of sharp increases in interest rates by the Federal Reserve. This measure strengthened the US currency and US government bond yields, but weakened gold. The yellow metal sank most of all after Fed Chairman Jerome Powell's statements about the continuation of the current cycle of tightening the monetary policy. Markets are currently estimating a 70% chance of a rate hike by the US central bank in September (by 75 bps). Pressure on the cost of the yellow metal is exerted by expectations of further tightening of monetary policy by the leading central banks. According to experts, any signals about a possible increase in the key rate by 75 bps etc. will put pressure on gold. In addition to the US central bank, its European counterpart is also preparing to raise interest rates in September. The key task of central banks remains the fight against skyrocketing inflation, while the threat of a recession has faded into the background. In these circumstances, it is difficult for the Fed to raise interest rates too aggressively, analysts say. At the same time, the strengthening of the US currency puts downward pressure on the price of the yellow metal. Currently, gold lacks confidence to move further as the possibility of a fall in its price (to $1,700 per 1 ounce in the fourth quarter of 2022) increases. However, the forecasts of some analysts are encouraging. Currency strategists at Standard Chartered Bank are confident that the precious metal is unlikely to become much cheaper, since part of the risks of a fall is already included in its value. The specialists expect the downward trend of the precious metal to slow down, which is now under pressure due to fears of an aggressive tightening of the Fed's monetary policy. The yellow metal was tripped up by the growing dollar. Positive data on the US labor market provided additional support to the greenback, whose strengthening position was one of the reasons for the decline in the value of gold. As a result, the price of gold collapsed after the number of vacancies in America exceeded the expected figure. Against this background, many experts have come to the conclusion that in the long run, the dollar will replace the precious metal in the list of traditional defensive assets. At the moment, such a scenario is unlikely, analysts emphasize. Now the yellow metal does not bring a large investment income, but is in active demand in an environment of geopolitical and economic uncertainty. In addition, gold remains a sought-after defensive asset in the face of rapidly rising inflation.       Relevance up to 10:00 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. Read more: https://www.instaforex.eu/forex_analysis/320809
Is This The End Of A Winning Streak/Bullish Trend Of Gold?

Is This The End Of A Winning Streak/Bullish Trend Of Gold?

InstaForex Analysis InstaForex Analysis 05.09.2022 12:53
The gold market is in a precarious position. The latest weekly gold survey suggests there is little optimism in the market. In near-term analysis, Wall Street analysts remain slightly optimistic as they see the US dollar as overvalued; however, bearish sentiment among retail investors rose to a multi-year high. Bearish sentiment emerged as the US dollar ended the week at a new 20-year high above 109 points. Darin Newsom, president of Darin Newsom Analysis, said he remains optimistic that the gold market could attract some lucrative hunting. However, he added that the medium and long-term outlook looks bleak. He stressed that despite the increasing daily volatility in the gold market, the broader trend remains. A total of 17 market professionals took part in a Wall Street poll last week. Seven analysts, or 41%, said they are bullish on gold this week. Six analysts, or 35%, said they were bearish. Four analysts, or 24%, said they were neutral about the precious metal. As for retail, 898 respondents took part in online surveys. A total of 337 voters, or 38%, voted for gold to rise. Another 412, or 46%, predicted a fall in gold. While the remaining 149 voters, or 17%, were in favor of a side market. However, some analysts are more optimistic. According to Colin Cieszynski, chief market strategist at SIA Wealth Management, the decisions on monetary policy of the Bank of Canada and the European Central Bank this week may focus on the US dollar. The Bank of Canada will likely raise interest rates by either 50 or 75 basis points. In Europe, there are calls for the ECB to raise interest rates by 75 basis points. Adrian Day, president of Adrian Day Asset Management, said the sale of gold below $1,700 is exaggerated. And he is optimistic about the prices of the precious metal because the euro may see some short-term bullish momentum. Day added that in the long term, gold will regain its luster when investors realize that central banks around the world will not be able to bring down inflation. Both the Federal Reserve and the European Central Bank cannot bring inflation down to their target levels without triggering a severe recession. This will benefit gold. On the bearish side, analysts note that gold is hovering at a very dubious level. If gold prices fall below $1,685, this could signal the end of a multi-year bull run.       Relevance up to 10:00 2022-09-08 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. Read more: https://www.instaforex.eu/forex_analysis/320801
Ed Moya and Jonny Hart talk the US Q3 GDP, crude oil and crypto

Crude Oil: What Is The Expected OPEC+ Decision On The Output?

Craig Erlam Craig Erlam 05.09.2022 16:02
OPEC+ meets after price cap announcement Today’s OPEC+ meeting has been somewhat overshadowed by all the talk of oil price caps and Nord Stream 1. The group is expected to leave output targets unchanged but it’s likely that a cut will be at least discussed which, if followed through on, would create more volatility and uncertainty at a time of considerable unease. The economic outlook and potential for a new nuclear deal have weighed on prices recently, much to the frustration of Saudi Arabia in particular. An output cut won’t make them any friends at a time when the world is facing a cost-of-living crisis already and the group has failed to keep up with demand this year. The more sensible option may be to hold this month and revisit in the future when there’s more clarity; something that is seriously lacking at this moment in time. ​ Gold holding up for now Gold is treading water at the start of the week even as the dollar rallies strongly once more. Traders are favouring the safety of the greenback this morning but that’s not damaging appeal for the yellow metal. It’s come under considerable pressure in recent weeks as yields have risen and the dollar has bounced back and it’s now trading around a key area of support, which may be why we’re seeing more resilience. While $1,700 looks like a psychological barrier, $1,680 is key. A break of that could signal further pressure on gold, especially if accompanied by more aggressive tightening from central banks. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Oil eyes OPEC and Nord Stream 1, gold steady - MarketPulseMarketPulse
Ed Moya and Jonny Hart talk the US Q3 GDP, crude oil and crypto

OPEC+ Switch To 100K Barrels Has Affected Brent Crude Oil Price

Craig Erlam Craig Erlam 06.09.2022 12:18
Brent steadies after OPEC+ boost Brent crude is a little lower today after seeing decent gains at the start of the week following the OPEC+ output announcement. The decision to reverse the 100,000 barrel per day increase in September was more symbolic than fundamentally significant, in that it doesn’t really change the dynamics in the market but it will make traders think twice about driving prices lower in the way they have recently. Read next: Interest rates hiked. The most important indicators continue their downward trend| FXMAG.COM The disturbing global economic outlook combined with the prospects for a nuclear deal between the US and Iran created a bearish case for oil prices, something that hasn’t been the case for much of the year. But the cartel has sought to quash that quickly by not just signalling a willingness to cut output but also leaving the door open to emergency meetings in order to address market volatility. In other words, if the market tries to drive the price much lower again, or the fundamentals change, the group will cut again and it won’t wait until 5 October. As far as Brent is concerned, that may have reinforced support around $90, with the group clearly favouring a price closer to $100. It will be interesting to see if the market tries to test the group’s resolve again or if this initial warning shot will prove enough. Recovering but for how long? Gold is enjoying a bit more of a recovery today, this time aided by a pullback in the US dollar. The greenback has been a strong headwind for the yellow metal and, along with rising yields, has driven it back towards $1,680 where it has once again run into firm support. While some may be encouraged by the rebound we’ve seen, I wonder how much appetite there’ll actually be for a significant and sustainable rebound. We’re seeing it face its first test now around $1,730 which until recently was a key area of support. If it overcomes this, further resistance could be found around $1,750-1,760 which would be a big test. A move above here could inspire some optimism but in this environment, that will be easier said than done. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Brent edges lower after OPEC, gold rises - MarketPulseMarketPulse
Gazprom Threathening To Cut Gas Transits Via Ukraine

Gas Supplies To Europe Via The Nord Stream 1 Pipeline Will Not Resume In Full. Gold And Silver Trades Higher

Saxo Bank Saxo Bank 06.09.2022 09:57
Summary:  Markets poked around with little conviction yesterday as US markets were closed for Labor Day. Overnight, the JPY dropped to new lows versus the US dollar and weakened broadly even as global bond yields bounced around in a range, a sign of mounting pressure on the Bank of Japan to abandon its policy of capping bond yields. In Europe, the focus this week is on plans to cap gas and power prices and new UK Prime Minister Liz Truss has announced a 130 GBP billion plan to deal with soaring energy costs - more than 5% of UK GDP.   What is our trading focus? Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) US equities are trying to find some stabilisation in the short-term trading higher this morning at around the 3,935 level with the 3,903 being the key level to watch on the downside. The US 10-year yield is still seeing upward momentum sitting at 3.24% this morning and consensus is slowly moving on ECB in favour of significant tightening to reign in inflationary pressures in the economy. Today’s ISM Services print for August is the key macro figure to watch today. A negative surprise in the US services sector could be a positive for equities as it could cool inflation expectations and longer-term US yields. EURUSD and USD outlook for Europe moves to cap energy prices With the US out on holiday yesterday, the US dollar backed off a bit, not including the move in the Japanese yen to new cycle lows, which is more about the BoJ’s reluctance to change policy (more below). The greenback is at a technically pivotal spot here in EURUSD (trying but so far failing to separate from parity after posting a marginal new low in the wake of the as Europe attempts its move against soaring energy prices, which will require some energy rationing and therewith a reduction in real GDP even if successful and as the ECB scrambles to gain credibility in its fight against inflation, with expectations for the policy rate through the December ECB meeting rising nearly 70 basis points since mid-August. JPY crosses suggest mounting pressure on Bank of Japan USDJPY has rallied to new 24-year highs overnight, trading nearly 141.00 this morning, even as US long treasury yields remain a few basis points below their recent peak, suggesting that the market is set to challenge the Bank of Japan policy of capping yields. A Bank of Japan that continues to hold the line on capping yields could create a pressure cooker of a situation on the yen and tremendous volatility, particularly if US 10-year treasury yields continue back higher toward the 3.50% peak from June. The next important economic data points for the US are today’s ISM Services survey for August and Monday’s August CPI. EU gas and power EU gas and power market rallied on Monday following Putin's decision to further weaponize its energy supplies to Europe by closing Nord Stream 1. However, the sense it can hardly get much worse saw the market turn its attention to the EU and Friday’s energy summit where proposals to mitigate Russia’s hostile actions will be discussed. After surging to €290/MWh on the opening, the Dutch TTF benchmark gas contract ended the day at €245/MWh, up 14% and well below the €350 peak seen when the Nord Stream 1 maintenance was announced. German year ahead power closed at €570 after failing to get anywhere near the panic peak above €1000 seen last Monday, an indication the market is looking for a new pricing structure and speculators worrying about the derivative market being shut down for a period. Crude oil (CLV2 & LCOX2) Crude oil rallied on Monday after the OPEC+ group of producers in a surprise move took away the token 100k b/d production increase that was added last month in response to lobbying from the US President. Additional action to keep prices stable (read supported above $90) could be enacted at short notice, the group said. Other developments traders must deal with is the prospect of an unlikely revival of the Iran nuclear deal until after the November US Midterm elections, further lockdowns in China hurting demand, and a deepening energy crisis in Europe where punitively high gas prices will likely support demand for refined products such as diesel and heating oil. The EIA will publish its monthly Short-Term Energy Outlook on Wednesday. Brent is currently stuck between support at $91.50 and the 21-day moving average, last at $97.15. Gold and silver Gold and silver trades higher supported by selling fatigue and short covering following last week’s rout, especially silver that was dragged down by copper’s slump on China growth concerns. All three metals have, however, managed to find a bid but the question remains how much further they can recover without the support from a weaker dollar and yields pausing following their recent ascent. Copper needs to hold support at $3.38/lb, the 61.8% retracement of the July to August bounce while silver needs a solid break above $18.40 and gold above $1728/oz. US Treasuries (TLT, IEF) The dip in US treasury yields from Friday has so far proven a one-day affairs as yields have rebounded slightly ahead of the next important couple of important US macro data points, the August. SM Services survey today and the August CPI data on Monday. Technically, the remainder of the range from 3.25% to 3.50% in the US 10-year treasury benchmark is critical for whether rising global yields once again become the market’s primary focus. What is going on? Liz Truss won the contest to become the next UK Prime Minister Her promises range from quick action on energy security to alleviating the cost-of-living crisis for the hardest hit by price rises, all while cutting corporate and other taxes. She has announced a GBP 130 billion plan to freeze energy bills, which is around 5% of currently rapidly rising nominal UK GDP and a recipe for ballooning fiscal deficits, an issue that is already an ingredient in sterling’s steep fall this year, so an even steeper recession is in the wings. This could come either from a drop in real GDP due to soaring inflation aggravated by further sterling declines or as demand is crushed by a steep recession due to the need for the Bank of England to accelerate its pace of rate hikes or more likely a combination of the two. Longer term, investments in fracking shale gas and new North Sea exploration could pay dividends. For the moment, sterling is enjoying a modest relief rally. Russia makes a clear case of weaponizing gas supplies While the Kremlin had earlier said that they were halting gas supplies on Nord Stream 1 for a technical fault, it has now clearly stated that gas supplies to Europe via the Nord Stream 1 pipeline will not resume in full until the “collective west” lifts sanctions against Moscow over its invasion of Ukraine. Russia is still supplying gas to Europe via Soviet-era pipelines through Ukraine that have remained open despite the invasion, as well as the South Stream pipeline via Turkey. But supplies along the northern pipeline routes, including Nord Stream 1 and the pipelines through Ukraine, have fallen by more than 90% since September last year. Higher supplies from Norway, the UK, north Africa and increased imports of LNG have helped to an extent offset the loss of Russian supplies. PBOC cuts currency deposit reserve requirement ratio by 200 bps The PBoC announced that the central bank is cutting the reserve requirement ratio for foreign exchange deposits (the “FX RRR”) to 6% from 8%, effective September 15. The cut is expected to release about USD 19bn (2% of the USD 954bn FX deposits outstanding) in FX liquidity for banks to make loans in foreign currencies. The PBoC last cut the FX RRR to 8% from 9% on 15 May, to send a signal to the market to put a pause to the depreciation of the USDCNY which had weakened from 6.40 to 6.80 in one month (15 April to 13 May). After the surge of the USDCNY from 6.75 to above 6.90 in about half a month since 15 Aug, the PBoC apparently wants to send a signal again to the market to slow the speed of the renminbi depreciation against the USD. OPEC+ announced a production cut of 100k bpd A token cut by OPEC+ last night of 100k barrels per day just reverses the output increase agreed to last month. The decision was ‘symbolic’, with the new quotas taking effect in October. The amount is significantly small compared to a 100 million bpd market but it shows that OPEC+ wants to set a floor near $100/barrel in Brent. Saudi Arabian oil minister Prince Abdulaziz bin Salman had warned last week that a cut was a possibility given what he said was a disconnect between financial and physical oil markets. Newcastle Coal futures price hits a new record high As Europe is facing an energy crisis this winter, it will need to increase energy imports. The UK is already importing Australian LNG. In anticipation of such a scenario, this might explain why the Australia coal price trades at a record, along with the futures price. The Australian energy supply is already likely to run low in 2023, meaning inflation will continue to worsen and for coal companies, their earnings and free cash flow will likely increase. Australia’s hikes 50 basis points as expected, says it is not on a pre-determined route from here. The property sector is already struggling to absorb the hikes already in the bag from this cycle, so we will be watching signs of further strain in the banking sector, along with property stocks and property ETFs, given Australia’s private debt to GDP is one of the highest in the world. What are we watching next? Explosion in JPY volatility ahead? It appears that the market is ready to challenge the Bank of Japan more directly again on its yield-curve-control policy as the entire developed market complex ex-Japan has been marked to continue tightening policy, while the Bank of Japan tries to remain an unmovable object, and this is without a notable further jump in the important longer yields . Even GBPJPY is tearing higher this morning as sterling catchs a bit of a relief rally in the wake of PM LIz Truss’ arrival on the scene. US August ISM Services vs. S&P Global Aug. Services PMI – which shows the true state of US Services economy? Already in July, there was a significant contrast between the two surveys, with the S&P Global survey suggesting that the US services sector is in contraction, with a reading of 47.3, a number that dropped to 44.1 for the preliminary August release of the survey. Meanwhile, The July ISM Services survey surprised to the upside with a strong 56.7 reading in July and the August release later today is expected in at 55.4. Which is correct? Australian economic growth data in focus Australian economic growth is expected to show 1.2% growth q/q in the second quarter and 3.8% y/y. Second quarter GDP will likely get a boost from record retail sales, and a pickup in overseas travel. However, construction costs and hampered residential construction activity could weigh on the headline GDP figure. Earnings to watch While the earnings release date for NIO has been moved around multiple times it should be final now so tomorrow one of China’s largest EV-makers will report Q2 earnings. Investors will focus on the Q3 outlook for revenue growth and margins in order to gauge when NIO can break even on its operations. Today: Ashtead Group Wednesday: People’s Insurance Co Group, Exor, Copart, NIO Thursday: Sun Hung Kai Properties, Sekisui House, Zscaler, DocuSign Friday: Dollar Stores, Kroger Economic calendar highlights for today (times GMT) 0830 – UK Aug. Construction PMI 1345 – US Aug. S&P Global Services PMI 1400 – US Aug. ISM Services 2105 – New Zealand RBNZ’s Silk to speak 0130 – Australia Q2 GDP Follow SaxoStrats on the daily Saxo Markets Call on your favorite podcast app: Apple  Spotify PodBean Sticher   Source: https://www.home.saxo/content/articles/macro/market-quick-take-sep-6-2022-06092022
Central Bank Policies: Hawkish Fed vs. Dovish Others"

Will The FED's Monetary Policy Affect Inflation?

InstaForex Analysis InstaForex Analysis 01.09.2022 14:13
Gold continues to trade under pressure, dropping to $1,700 an ounce. US Federal Reserve Chairman Jerome Powell's keynote speech last week had a sustained impact that continues to push US equities and precious metals lower. His speech was strong and clear, confirming that the Fed is determined to bring down inflation at all costs. According to the Evening Briefing by Bloomberg, Powell has given up on the possibility of a soft landing and is now aiming for something that could potentially cause much more suffering for US corporations and individuals. However, many analysts are convinced that the Fed's hawkish monetary policy will not be enough to achieve its intended goal. Further, the article states that analysts have called this economic scenario the paradoxical name of "growth recession." It differs from a soft landing in that it is defined as a protracted period of meager growth and rising unemployment. The belief that Chairman Powell is trying to reduce inflation with a "growth recession" to avoid an outright recession is similar to cutting out a picture to fit the frame. The simple truth is that a recession is most likely inevitable, and the question is how deep it will be and how much pain it will cause corporations and Americans in 2023. Achieving an inflation target of 2% when the latest data relative to PCE is above 6% is a pipe dream without an increase in interest rates or a gradual increase in rates with the understanding that this will be a multi-year process of fighting inflation. A historical perspective on how various Federal Reserve Chairmans have faced the challenge of bringing inflation to a manageable target shows that this has never been accomplished without raising interest rates to meet the inflation target.         Relevance up to 11:00 2022-09-02 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. Read more: https://www.instaforex.eu/forex_analysis/320561
With High Inflation, Why Isn't Gold Rising?

With High Inflation, Why Isn't Gold Rising?

Jing Ren Jing Ren 05.09.2022 23:56
The sales pitch for gold is that it's a hedge against inflation, because it doesn't lose its value. It is a real commodity, unlike fiat currency. Yet, as inflation has skyrocketed around the globe this year, the price of gold has not. In fact, after peaking out in March, it has since trended lower. What gives? Prices are relative One of the things to keep in mind, first, is that gold is priced in dollars. So, sure, there has been inflation in many other currencies (with the notable exception of the yen, which is a whole different story). But the dollar has gotten relatively stronger, despite inflation. Partially, because inflation in other currencies has been even bigger. Take the EURUSD, for example, which popped down to the 0.9900 handle, the lowest in over 20 years. Since the start of this year, the Euro has depreciated over 13% against the dollar, well above the 8.9% annual inflation that was last recorded. In fact, the annual depreciation of the Euro has been almost 17%. That's almost 8% of net benefit for anyone who kept dollars over the last year, despite the highest inflation in the shared currency. Why does this matter? It means that Europeans (and Chinese, Indians, Turks, etc) don't need to buy gold to hedge against inflation in their own economies. Holding dollars was a much better investment than keeping money in the bank. So, what's happening to the price of gold really depends on what's going on with the dollar. But the dollar is worth 8.5% less than it was one year ago. Wouldn't buying gold be an even better option? If we were looking in the past, sure. But when investors decide what to invest in, they are looking to the future. What's the best asset to have in their portfolio going forward, while the inflation readings that we have are for the last year. It's all about expectations One of the reasons that the price of gold rolled around in March is because of increased geopolitical tensions. But the other that has been more long lasting is that's when the Fed started hiking rates. Sure, it was expected that inflation would rise for a while, as it takes some time for monetary policy to take effect. But, eventually, the Fed is going to get inflation under control. Meaning that inflation is expected to go down. More to the point, interest rates are expected to keep rising. People who invest in dollar-denominated fixed income (treasuries, bonds, other securities) would see increasing yields. What that means is that even though inflation is high, in fact, because it's high, there is an expectation of increasing returns for those who hold dollars. Meanwhile, gold doesn't pay dividends or interest. What about the hedge, then? In other words, as inflation rises, the more likely the Fed will be to raise rates and drive down that inflation. That makes the dollar get stronger, so in comparison the price of gold goes down. Gold is a hedge against inflation before it rises. But once there is high inflation, the picture turns around. Assuming the Fed does manage to control inflation. Basically, once inflation is high, it's too late to "hedge" against inflation that already happened.
Prices Of Gold Rose For The Third Straight Session

The Outlook Of Gold Remains Bearish

InstaForex Analysis InstaForex Analysis 08.09.2022 08:45
Early in the European session, gold (XAU/USD) is trading at 1,714.33. Yesterday in the American session, gold managed to consolidate above the 21 SMA located at 1710, giving it a positive outlook for the coming days. Gold is currently trading above the 21 SMA and below the 3/8 Murray. Both levels could be acting as immediate support and resistance. On the 4-hour chart, we can see the formation of a double bottom technical pattern located at 1,688 and another at 1,691. This technical pattern represents the probability that XAU/USD could go ahead with the uptrend and could reach 200 EMA located at 1,744. On September 7, the eagle indicator reached the 5-point level which represents an extremely oversold zone. In the coming days, gold is likely to break sharply the downtrend channel which has been underway since August 8. So, the price could reach the level of 1,750 and even reach 5/8 Murray at 1,781. Market sentiment shows that investors continue to take refuge in the US dollar and this in turn is reflected in the high yields of Treasury bonds. Both assets are negative factors for XAU/USD. In the medium term, the outlook remains bearish for gold. This, in turn, suggests that any recovery attempts could be seen as a selling opportunity. Our trading plan is to buy above the 21 SMA located at 1,710. Additionally, a sharp break above the downtrend channel of around 1,718 will be seen as an opportunity to buy with targets at 1,744(200 EMA) and 1,750.     Relevance up to 06:00 2022-09-13 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. Read more: https://www.instaforex.eu/forex_analysis/291885
Yen (JPY) Takes A Stab At Resilience, The Grains Sector Has Survived Well

Concerns About Global Supply On The Wheat, Apple Without Price Increases

Saxo Bank Saxo Bank 08.09.2022 09:39
Summary:  US Treasury yields retreated sharply yesterday, bringing relief to equity markets and turning the US dollar back lower. The soaring USDJPY found resistance near 145.00, while EURUSD backed up toward parity ahead of today’s ECB meeting, which is set to deliver the largest rate hike in the central bank’s history of 75 basis points as the bank seeks to catch up with global peers in its fight against inflation. Crude oil slumped below support on demand concerns, especially in China.   What is our trading focus? Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) US equities rallied hard yesterday with S&P 500 futures surging 1.8% in what mostly looks like a technical rebound across many asset classes as positions maybe are trimmed ahead of the US CPI report on Tuesday. The obvious key level to watch in S&P 500 futures on the upside is the 4,000 level with the futures trading around the 3,988 level this morning. The 50-day moving average at 4,027 is currently colliding with the 100-day moving average making the 4,030 level a key area to test in the short-term. Apple unveiled a low-risk update to its iPhone suite introducing the iPhone 14 with a few hardware updates. The cost-of-living crisis may jeopardize Apple’s expected upgrade cycle that the market is currently expecting. Hong Kong’s Hang Seng (HSIU2) and China’s CSI300 (03188:xhkg) Despite the S&P 500 rallied by nearly 2% and the Nasdaq Golden Dragon China Index surged by 2.3% overnight in the US, Hang Seng Index (-0.4%) continued its multi-session decline since the beginning of September. In mainland China, the CSI300 had a lackluster day fluctuating between small gains and losses. The weakness in Tencent (00700.xhkg), -2.3%, dragged down the benchmark index in Hong Kong. According to filings to the stock exchange, about $7.6bn worth, or 2% of the market cap, of Tencent shares have been transferred to the exchange’s clearing and settlement system. The news stirred up speculation that Prosus, a majority shareholder holding over 28% of Tencent, is selling Tencent shares.  In June, Prosus (PRX:xams) announced that the company was going to offload its stake in Tencent to raise cash to buy back its own shares and Naspers’ (NPN:xjse) shares (Prosus’ parent) at a discount to NAV. Strong USD tamed by treasury yields. EURUSD focus today in FX on ECB The latest leg higher in the US dollar was driven by a sharp move higher in US Treasury yields, a move that reversed yesterday and took the US dollar back a few notches with it. An important test ahead for the broader US dollar picture today is in EURUSD as the ECB is expected to deliver a 75-bp rate hike, the largest hike in its history, in an attempt to play catchup with global peers in its inflation fight – will the move support the Euro further or does Europe’s grinding energy emergency keep a lid on EURUSD for now? The market has priced more than 50/50 probability of a 75-bp move versus a 50-bp move and would need to hike 100 basis points to really impress the market. JPY downward spiral as global yields jump The USDJPY spike finally found resistance at the 145.00 level yesterday as US Treasury yields reversed lower. The move higher has been aggravated by the rising tide of global yields that contrasts with the Bank of Japan policy of standing pat with its yield-curve-control (YCC) policy. Often, a weak JPY encourages hedging activity by the Japanese holders of enormous savings held abroad but hedging activity has been low this time as Japanese investors abroad have enjoyed strong returns. The cycle top in EURJPY just above 144.00 is also a focus today as the ECB is set to hike as noted above. Given the scale of JPY weakening in recent days, Japanese officials will likely be out soon with a more determined response, generating two-way volatility. Crude oil (CLV2 & LCOX2) Oil prices steadied in the Asian morning after steep declines in the last few days amid demand concerns especially in China where its zero Covid policy is now impacting areas and a population that accounts for around 25% of GDP. Before the slump below $90 in Brent and WTI $85 the market had briefly rallied on Putin threats that he would cut supplies to countries agreeing on a price cap for Russian oil and gas. Supply issues had little impact, even as EIA lowered its annual oil production forecast for this and next year while raising its global demand outlook amid rising gas-to-fuel switching activity, mainly in Europe. The likelihood of an Iran nuclear deal adding supply is also fading. Focus on further OPEC+ action with Brent sliding further away from $100/b. Resistance: WTI at $85.75 and Brent at $91.50. Gold (XAUUSD) Gold once again managed to find buyers below $1700 thereby avoiding another attempt at challenging key support around $1680, a level from where the price has bounced multiple times during the past two years. Main source of directional input continues to be provided by yields and the dollar, both of which trade softer overnight (see above and below comments). Gold’s best chance of a further bounce at this point would come from short covering from recently established short positions, but for that to happen, the price as a minimum would need to break above $1735. Focus today on today’s expected ECB rate hike and its impact on EURUSD. US Treasuries (TLT, IEF) US Treasury yields reversed much of the previous day’s gains yesterday and followed through a bit lower still, taking the 10-year treasury yield below 3.25% this morning. The move helped bring relief to global risk sentiment as the USD also edged lower. The persistent move higher in US longer yields from the early August base allows for a test all the way to the 3.00% yield area in that 10-year benchmark without reversing the trend. The focus to the upside is the 3.50% peak from mid-June, around the timing of the June FOMC meeting. What is going on? Putin supply threat lifts wheat futures The Chicago and Paris contracts both jumped by more than 3% on Wednesday with the US traded contract reaching the highest level in nearly two months, after Putin criticized the UN-brokered Ukrainian grain export deal, saying the developing world had been “cheated” with the bulk of the shipments going to Turkey and Europe. Comments that could see Russia trying to revise its term to limit countries that can receive shipments. Paris Milling wheat, the high protein variety used for human consumption, still trades 25% below the May panic peak but any developments that reduces flow from Ukraine may add to global supply worries and lift the price further. New dock workers strike in the United Kingdom The UK has been facing recurring transport disruptions over the past few years. This is related to Brexit, Covid and now higher cost of living. A dockers strike at Felixstowe port (the country’s biggest container port) ended a few days ago. But a new one is looming at the port of Liverpool. The dockers trade union is calling for a strike from 19 September to 3 October (at least) after negotiations to raise salaries failed. This matters a lot. The port of Liverpool is a key hub for transatlantic sea transport. If inflation continues to rise (which is likely), expect many more strikes to come and not only in the transport industry. Social tensions will probably increase sharply in the coming months. Apple unveils iPhone 14 models If investors were hoping for a major product release of the most popular and iconic smartphone on the market they were left disappointed yesterday. Apple delivered a low-risk upgrade to its iPhone series with the iPhone 14 delivering some few hardware upgrades and no change to its overall design. The computer chip A15 Bionic is also staying the same. The biggest positive was probably no price increases which is quite telling, but also underscoring the cost-of-living crisis that many consumers are facing and in fact is jeopardizing the expected upgrade cycle of the iPhone. US retail investor readings still rock-bottom The AAII investor readings are still dire reading for the market with the spread between bullish and bearish readings hitting -35.2 in its latest data point which is worse than during the lows in 2020 and on par with the darkest hours during the Great Financial Crisis. This very negative sentiment of course could be fuel for a sharp rebound in the case Tuesday’s US inflation print turns out lower than expected. Dovish speech from Reserve Bank of Australia chief Philip Lowe In Australia overnight, RBA Governor Lowe delivered perhaps the first somewhat dovish speech in a long while from a non-BoJ developed market central bank, arguing that “the case for a slower pace of increase in interest rates becomes stronger as the level of the cash rate rises”. This lowered anticipation that the October RBA meeting will deliver another 50-bp hike after four consecutive half-point increases that have taken the policy rate to 2.35%. Australia’s trade surplus halves as coal and iron ore exports fall from record highs Australia’s trade surplus almost halved in July, plunging from A$17.1b to a A$8.7b surplus, when the market expected the surplus balance to fall to just A$14.5b. It comes as exports of coal and iron ore fell from their record highs, dragging down total exports by 10%. Coal export earnings fell 17% with the northern hemisphere in peak summer, while iron ore export earnings fell 15% tarnished by China’s slow down. Australian imports (covering outbound tourists) rose 5% with Aussies escaping the record cold winter to enjoy European sun. Fed speakers, and another possible WSJ article “guiding” for the September FOMC Meeting? Federal Reserve Vice Chair Brainard noted rates will need to rise further and policy will need to be restrictive for some time. She needs to see several months of low inflation readings to be confident inflation is moving down to 2% but how long it takes to get back to target will depend on a combination of continued easing in supply constraints, slower demand growth, and lower markups, against the backdrop of anchored expectations. The Cleveland Fed’s Mester (2022 voter) reaffirmed that she is not yet convinced about inflation peaking yet, and she also spoke on the August jobs report, where she said they are beginning to see some moderation, but labour market conditions remain strong. Elsewhere, the WSJ's Nick Timiraos wrote: "The Federal Reserve appears to be on a path to raise interest rates by another 0.75 percentage point this month in the wake of Chairman Jerome Powell’s public pledge to reduce inflation even if it increases unemployment." After a Timiraos article triggered a spike in anticipation that the June FOMC meeting would deliver 75 basis points rather than 50 bps, the market may have taken note, as money market pricing of a 75bps rate hike at the September 21 FOMC meeting has picked up from 68% on Tuesday to 81% now. Bank of Canada hikes 75 basis points As expected, the Bank of Canada hiked rates by 75bps bringing the rate to 3.25% and into restrictive territory, given the central bank’s estimate of neutral rate is 2-3%. The tone remained hawkish, but lacked clear guidance as it reiterated that further hikes will be necessary to bring inflation to target, implying the BoC is not done yet and will move even further into restrictive territory. While growth is slowing and housing prices are down 18% since February, short-term inflation expectations remain high, signaling a risk that elevated inflation becomes entrenched. What are we watching next? Japan’s Ministry of Finance, Bank of Japan and FSA to hold first three-way meeting since June This is clearly in response to the breathtaking weakening in the Japanese yen this week. We can expect some form of more determined intervention from here and with it, more two-way volatility. ECB interest rate hike today The ECB will have no other choice but to send a strong signal to the market regarding its commitment to lower inflation (expect a 75-basis point interest rate hike today). We forecast the ECB will need to keep increasing rates in the coming months for at least four main reasons: 1) inflation is high and it is not just about energy prices. Core inflation stands at 4.3 % year-over-year and is likely to continue rising in the short-term; 2) inflation expectations are up sharply. In the space of only eight months, inflation expectations for 2023 have risen from 1.5 % to 4.2 %; 3) the economy is able to cope with higher interest rates (eurozone consumer credit growth is steady which seems to indicate that monetary policy is not tight enough); and 4) the low euro exchange rate is a headache (since it increases imported inflation). The ECB will need to convince the markets they are able to curb the decline of the single currency. This is not an easy task. EU proposes five measures to curb gas demand and prices Ahead of Friday’s emergency energy meeting, European Commision President Ursula von der Leyen proposed five radical steps to curb costs and demand: 1) Smart savings of electricity by mandatory targets to reduce peak hour demand for electricity; 2) Cap on revenues of companies producing electricity with from low-cost sources such as wind and solar with profits being re-channeled to vulnerable people and companies; 3) Solidarity contribution from fossil fuel companies; 4) Liquidity support for energy utility companies in order for them to cope with elevated market volatility; 5) Cap on Russian gas revenues on the remaining 9% Russia supplies  to Europe, down from a pre-war level around 40% Earnings to watch Today’s key earnings release is DocuSign which was a pandemic darling but has since been seeing growth coming down dramatically and its valuation hit by higher interest rates. Analysts expect FY23 Q2 (ending 31 July) to show revenue growth of 17.7% y/y with a significant jump in operating income which the company must deliver to avoid further downward pressure on its valuation. Thursday: Sun Hung Kai Properties, Sekisui House, Zscaler, DocuSign Friday: Dollar Stores, Kroger Economic calendar highlights for today (times GMT) 1100 – Mexico Aug. CPI 1215 – ECB Rate Announcement 1245 – ECB President Lagarde Press Conference 1300 – Poland central bank governor Glapinski press conference 1310 – US Fed Chair Powell to speak at a conference (includes Q&A) 1430 – EIA Natural Gas Storage Change 1500 – EIA's Weekly Crude Oil and Fuel Stock Report (delayed by a day) 1525 – Canada Bank of Canada’s Rogers to deliver report 1600 – US Fed’s Evans (voter 2023) to speak 1820 – US Fed’s Kashkari (voter 2023) to speak 1900 – US Jul. Consumer Credit 0130 – China Aug. PPI/CPI  Follow SaxoStrats on the daily Saxo Markets Call on your favorite podcast app: Apple  Spotify PodBean Sticher     Source: https://www.home.saxo/content/articles/macro/market-quick-take-sep-8-2022-08092022
Inflation Outlook: Energy Prices Drive Hospitality, Food Inflation Eases

The Rally In Markets That Started Yesterday Is Likely To Continue Today

InstaForex Analysis InstaForex Analysis 09.09.2022 09:57
Markets closed higher on Thursday, thanks to the outcome of the ECB meeting and speeches of Christine Lagarde and Jerome Powell. Optimism clearly spilled over, so stocks and commodities rose up, while dollar fell down. But at first glance, markets semed to have acted illogically as euro and European stock indices declined. That was after the ECB raised the key interest rate by 0.75% to 1.25% and Lagarde said that the central bank gives priority to rate increases to fight inflation. Fortunately, sometime later, markets began to grow, with stocks rising over the closure of short positions. Regarding how far euro can rise against dollar, much will depend on the plans of the Fed over interest rates. If Powell informs of a slowdown in inflation after the monetary policy in September and hints that the central bank will weaken the pace of rate hikes, dollar will continue to decline, which will lead to the further increase of EUR/USD. This will also cause growth in stock indices, first in the US, then on other global trading floors. So far, the Fed is still firm in its hawkish position, but the rally in markets that started yesterday is likely to continue today. Forecasts for today: GBP/USD The pair is trading below 1.1600. Overcoming this mark on the wave of a continued market rally will push the quote to 1.1720. XAU/USD Spot gold is trading below the strong resistance level of 1722.00. A break of this level amid positive dynamics on markets, accompanied by the weakening of dollar, will lead to a price increase to 1733.00.   Relevance up to 07:00 2022-09-12 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. Read more: https://www.instaforex.eu/forex_analysis/321238
The Gold Rally Is Continuing To Stall, This Could Be A Good Year For Crude Oil

Crude Prices Are Rallying On Supply Risks, Gold Is Higher

Kenny Fisher Kenny Fisher 10.09.2022 15:00
As the world mourns the death of Her Majesty Queen Elizabeth II, world leaders pay tribute for her incredible service and leadership. The UK enters a 10-day mourning period that will see some events delayed or suspended. ​ The BOE announced they will push back their interest rate decision to September 22nd. UK train strikes will be delayed as three British trade unions will suspend their scheduled strike action. ​ The Office of National Statistics confirmed the upcoming economic publications are due to go ahead. ​ That includes UK trade, GDP, unemployment, inflation, housing, and retail sales data. Wall Street is finishing the week on a positive note as the dollar’s rally has run out of steam as optimism grows for inflation to continue to come down. Economists are slightly lowering their inflation forecasts and that could mean the Fed won’t have to take rates above 4%. Another round of hawkish speak from both the Fed’s Bullard and Waller was not able to derail today’s stock market rally. ​ ​ It is looking like traders are growing confident they will soon see the end of the Fed’s interest rate hiking cycle. ​ Supporting the risk-on narrative was softer-than-expected Chinese consumer and producer inflation data that could pave the way for more easing by the PBOC. Oil Crude prices are rallying on supply risks and as the dollar has tentatively peaked. Lately it has been mostly bad news for oil prices as demand concerns worsened given China’s deteriorating COVID situation, a surprise jump in stockpiles, and on expectations world leaders will continue to exhaust emergency measures to send energy prices lower. Energy Secretary Granholm said President Biden is considering the new releases from the US Strategic Petroleum Reserve (SPR). Russia President Putin’s threat to cut off all energy supplies is a growing risk as Ukraine recaptures territory. ​ The risk of some supply disruptions over the next few months remains elevated and that should help oil prices stay above the $90 a barrel level. Gold Gold is higher as the historic run higher in the dollar appears to have run out of steam. It seems Wall Street is getting comfortable with the idea of another 75-basis point rate hike by the Fed. ​ Fed’s Bullard supports a third straight 75-bp interest rate hike even if next week’s inflation reports show price pressures continued to ease. ​ Fed’s Waller also supports another significant rate hike this month. Gold is finding a home above the $1700 level and that could continue if investors continue to look beyond hawkish central bank speak. Gold’s fate could be determined after this next inflation report. ​ If consumer prices come in hotter-than-expected, gold might see selling pressure target the $1680 region. ​ A sharp deceleration with pricing pressures might only provide a modest boost higher for gold as policy makers. Bitcoin Bitcoin is welcoming the return of risk appetite and a falling US dollar. ​ The broad market rally has rejuvenated cryptos and that could continue if investors continue to look beyond hawkish central bank overtures and lingering recession risks. ​ ​ This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
The Commodities Feed: China's 2023 growth target underwhelms markets

Power Producers Need To Buy Carbon Permits, In China Loans To Households Remained Sluggish

Saxo Bank Saxo Bank 12.09.2022 10:01
Summary:  Ukrainian success in taking back significant territory from Russia over the weekend has driven a cautious further recovery in the euro and sterling at the open of trade this week. Elsewhere, yields have jumped higher, helping drive new yen weakness and taming risk sentiment as the US 10-year treasury benchmark trades near the cycle highs since June. Focus this week is on tomorrow's US August CPI release, the most important data point ahead of next week’s FOMC meeting.   What is our trading focus? Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) US equities Friday on a strong note up 1.5% and S&P 500 futures have extended their gains overnight touching the 4,100 level because before receding to around the 4,085 level in early European trading hours. The US 10-year yield continues to move higher trading at 3.34% and if it sets a new high for the recent cycle it will probably cause headwinds for US equities so watch the US bond market. Next big macro event is tomorrow’s US August CPI report which is expected to print –0.1% m/m suggesting inflation is beginning to cool. Hong Kong’s Hang Seng (HSIU2) and China’s CSI300 (03188:xhkg) Hong Kong, Shanghai, and Shenzhen are closed today for the mid-autumn festival holiday. Last Friday, Hang Seng Index soared 2.7%, snapping a six-day losing streak following China’s August inflation data surprising to the downside and raising hope for more monetary easing to come from the Chinese policymakers. Chinese property names rallied on market chatters about unconfirmed stimulus measures from policymakers to boost the ailing property sector. Ahead of the mid-autumn festival, catering stocks gained. CSI 300 climbed 1.4%, led by property, dental services, infrastructure, and digital currency.  Northbound inflows into A-shares reached USD2.1billion equivalent last Friday, the largest inflow in a single day since the beginning of the year. Ukrainian success on the battlefield drives EUR and GBP strength The surprise offensive and the re-capture of a key transport hub in the northeastern sector of the front after recent focus on operations in the south caught the market by surprise and has seen the euro and sterling rebounding versus the US dollar in early trading this week, with EURUSD trading to new local highs well clear of 1.0100 briefly overnight before edging back lower. Likewise, GBPUSD pulled north of 1.1650 before treading water back toward 1.1600. It will take some time and further developments to assess whether Ukraine can capitalize on its gains and this in turn triggers a new stance from Russia on its energy policy. JPY crosses back higher as yields rise The USDJPY correction on Friday inspired by somewhat stern language from Bank of Japan Governor Kuroda has mostly faded, as USDJPY bobs back above 143.00 overnight on US treasury yields challenging cycle highs. EURJPY pulled back close to the cycle high well above 144.00 overnight on hopes that the war in Ukraine is turning in the Ukrainians favour. New highs in USDJPY may bring more two-way volatility again if Japanese officialdom backs up its concern on the situation with market intervention (buying JPY). Crude oil (CLV2 & LCOX2) Crude oil starts the week in defensive mode with the focus staying with demand concerns amid continued lockdowns in China hurting demand from the world's top importer and a rapid succession of interest rates from major central banks negatively impacting the global economic outlook. Into the mix a US-backed plan to cap prices on Russian oil sales from December 5, a stranded Iran nuclear deal, strong demand for fuel products such as diesel at the expense of punitively high gas prices and a softer dollar. In addition, the collapse of Russian defenses in Ukraine and the response from Moscow will be watched closely. Monthly oil market reports from OPEC tomorrow and IEA on Wednesday should provide some further guidance on the supply/demand outlook. Brent’s current range: $92.75 and $87.25 US Treasuries (TLT, IEF) The 10-year US Treasury benchmark edged higher toward the local range high north of 3.3% overnight, with only the June peak at 3.50% remaining as the focus to the upside (this was the highest yield for the cycle since early 2011 and the run higher in yields in June coincided with the major low of the equity bear market this year. Tomorrow’s US August CPI number is the next key test for sentiment and yield direction, while the US Treasury will also auction both 3-year and 10-year treasury notes today and will auction 30-year t-bonds tomorrow. What is going on? France’s manufacturing production contracted in July According to the latest estimate released by the French Institute of National Statistics (INSEE), the manufacturing production decreased by a stunning 1.6 % month-over-month in July. It remains in expansion on a yearly basis (+0.2 %). Without much surprise, the drop is mostly explained by higher prices, especially higher energy prices. The INSEE does not forecast a recession in France this year. Nonetheless, growth is likely to decelerate very sharply in the coming quarters. The institute forecasts that growth will be around 0.2 % in Q3 and will be stagnant in Q4 2022. India’s rice export ban risk aggravating global food crisis After a ban on wheat exports earlier this year, India has now announced restrictions on rice exports, aggravating concerns of a global food crisis. Bloomberg reported India imposed a 20% duty on white and brown rice exports and banned shipments of broke rice. The new curbs apply to about 60% of India's rice exports and go into effect Friday. India’s rice output has been depressed due to the severe heatwaves, but also possibly to cap domestic price pressures. If these measures are duplicated by other key rice exporting countries like Thailand and Vietnam, there could potentially be a severe grain shortage globally, especially weighing on poor rice importing nations. We continue to see a threat of climate change to global agricultural output, which along with a prolonged energy crisis, suggested price pressure will stay in the medium-to-long term despite some cooling off from the recent highs. European carbon price drops as EU considers sale of permits from reserves The December ECX emissions contract (EMISSIONSDEC22) has fallen by around one-third since hitting a record high last month above €99 per tons. Given the current energy crisis, EU energy ministers are moving towards a deal to sell surplus permits from its Market Stability Reserve (MSR) in order to support a reduction in the cost of producing power and heating within the region. Power producers need to buy carbon permits to offset the polluting impact of using coal and gas over renewables. Occidental Petroleum shares rise on Berkshire accumulation In a filing on Friday, Berkshire Hathaway announced that it has lifted its stake to 26.8% in Occidental Petroleum. The move comes after the investment firm got regulatory approval for increasing the stake to over 50%. Berkshire’s move in Occidental Petroleum shares is seen as a move of confidence in the oil and gas industry as a much-needed industry for bridging the gap during the green transformation. Semiconductors are in focus as the US is expected to announce more curbs on exports The US Commerce Department is expected to publish new regulations curbing exports of semiconductors to China with companies such as KLA, Lam Research, and Applied Materials likely being impacted by the upcoming regulation. The move by the US further confirms the deglobalisation under the rule of self-reliance applied by increasingly more countries. China’s medium to long-term corporate loans picked up in growth  Over the past months, Chinese policymakers instructed policy banks and gave window guidance to commercial banks to extend credits to support infrastructure construction and key industries of the economy. Some results showed up in the August loan data which recorded a growth of 16% m/m annualized in the outstanding medium to long-term loans to the corporate sector. The amount of new medium to long-term loans to corporate was RMB 735bn in August versus RMB 346bn in July and RMB 522bn in August 2021. Loans to households remained sluggish. PBoC issues a list of 19 systemically important banks The People’s Bank of China and the China Banking and Insurance Regulatory Commission issued a list of 19 systematically important banks.  These 19 banks will face between 0.25% and 1% higher minimum capital requirements and additional leverage requirements. They are also asked to prepare contingency plans for major risk events. These 19 banks are Industrial and Commercial Bank of China, Bank of China, China Construction Bank, Agricultural Bank of China, China Minsheng Bank, China Everbright Bank, Ping An Bank, Hua Xia Bank, Ningbo Bank, China Guangfa Bank, Jiangsu Bank, Bank of Shanghai, Bank of Beijing; China CITIC Bank, China Postal Savings Bank, Shanghai Pudong Development Bank, Bank of Communications, China Merchants Bank, and Industrial Bank. The CPC is set to amend the party constitution at its upcoming national congress The Political Bureau of CPC Central Committee said in a readout last Friday that the Communist Party of China (CPC) is set to “work out an amendment to the Party Constitution that facilitates the innovative development of Party theories and practices and meets the need of advancing the great new project of Party building in the new era” at the CCP’s national congress to convene starting on October 16.  It further elaborates that “the latest adaption of Marxism to China's context and new circumstances will be fully epitomized and so will the new ideas, new thinking and new strategies of governance developed by the CPC Central Committee since the Party's 19th National Congress in 2017. What are we watching next? The Bank of England (BoE) will need to go big on 22 September The meeting initially scheduled for this week is postponed following the Queen Elizabeth II. Last week, both the Bank of Canada and the European Central Bank hiked their benchmark interest rate by 75 basis points. All eyes are turning to the BoE now. Pressure is mounting for the BoE to go big this week – meaning a 75-basis points hike. In August, the central bank hiked rates by 50 basis points to 1.75 %. Despite prime minister Liz Truss’s new anti-inflation plan (which will likely lower the peak in inflation), we think the BoE will need to show its commitment to fight inflation. The Bank forecasts that UK CPI will increase to 13.3 % year-over-year in Q4 2022. But the peak in inflation is only expected in 2023. This means that the cost of living will continue increasing in the short term, anyhow. Fed speakers stay hawkish before the blackout period begins and ahead of US CPI release tomorrow Fed rate hike expectations have picked up strongly since Jackson Hole, and we have heard an extremely unanimous voice from the Fed speakers since then. Some of them have clearly made the case for a 75bps rate hike in September, with Bullard on Friday even saying that Tuesday’s CPI report is unlikely to alter the incoming 75bps rate hike in September. Governor Waller leaned hawkish as well, but did not specify the size for September’s decision, but a “significant” hike still points to that. Esther George stayed away from guiding for individual meetings but made the case for sustained rate hikes. Ethereum merge The second-largest cryptocurrency, Ethereum, is scheduled to undergo a major upgrade this week (estimated on Thursday) which, if successful, will fundamentally change the way the cryptocurrency is working. It will go from the computationally intensive proof-of-work consensus to the more energy-friendly proof-of-stake, as well as introducing a mechanism to limit the inflation in Ethereum. The crypto community is looking very much forward to this upgrade, although some are concerned about the security in the new framework. Earnings to watch Today’s key earnings release is Oracle which a better-than-expected earnings result on 13 June surprising the market on EPS by 12% as the legacy database and software maker is gaining momentum in its cloud offering. Analysts expect FY23 Q3 (ending 31 August) revenue growth to accelerate to 18% y/y, which includes its recent acquisition of Cerner in the health care sector, which is impressive for the previously low growth company despite some of the growth being driven by acquisitions. If the outlook remains strong a longer-term repricing of the company’s valuation could be in the making. Today: Oracle Tuesday: DiDi Global Wednesday: Inditex Thursday: Polestar Automotive, Adobe Economic calendar highlights for today (times GMT) 0730 – ECB's Guindos to speak 0800 – Switzerland Weekly SNB Sight Deposits 1200 – ECB’s Schnabel to speak 1530 – US 3-year Treasury auction 1700 – US 10-year Treasury auction 2100 – New Zealand Aug. REINZ House Sales 0030 – Australia Sep. Westpac Consumer Confidence 0130 – Australia Aug. NAB Business Conditions/Confidence Follow SaxoStrats on the daily Saxo Markets Call on your favorite podcast app: Apple  Spotify PodBean engraver Source: https://www.home.saxo/content/articles/macro/market-quick-take-sep-12-2022-12092022
Gold Stocks Have Performed Very Well Under Pressure

The Gold Prices Are Still Trading Unchanged

8 eightcap 8 eightcap 12.09.2022 12:55
Gold managed to hold critical support above $1,700 despite the US dollar's update of its 20-year high, which means sentiment has improved. Although gold may rise this week, analysts warn that investors should not expect a significant breakout as the Federal Reserve continues to aggressively raise interest rates. There is currently an 88% chance that the US central bank will raise the federal funds rate by another 75 basis points on September 21st. Bannockburn Global Forex managing director Mark Chandler said he sees any rally in gold as a short-term correction of the current downward trend. Last week, 16 market professionals took part in a Wall Street survey. Nine analysts, or 56%, said they are optimistic about gold this week. Two analysts, or 13%, said they were bearish. Five analysts, or 31%, said they were neutral about the precious metal. In the retail sector, 495 respondents took part in online surveys. A total of 255 voters, or 52%, called for gold to rise. Another 153, or 31%, predicted a fall in gold. While the remaining 87 voters, or 18%, were in favor of a side market. Optimism among Main Street investors has improved sharply after bearish sentiment hit a multi-year low last week. The resumption of near-term confidence is due to the fact that gold prices are still trading relatively unchanged, breaking a three-week losing streak. Chris Vecchio, senior market analyst at DailyFX.com, said that despite challenging conditions for gold, market bulls can be confident that the precious metal has managed to create solid support around $1,700. Many analysts say they are bullish on gold as the US dollar appears to be unable to sustain gains above its recent 20-year high. Equiti Capital market strategist David Madden said that while gold appears to be stuck in a neutral position above $1,700 an ounce, it has shown some resilience, which could help draw some attention.     Relevance up to 10:00 2022-09-14 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. Read more: https://www.instaforex.eu/forex_analysis/321410
The Commodities Feed: OPEC+ meeting ahead

Crude Oil Price Can Get Back In The Game, Gold Price May Go Above $1,730 If The US Dollar (USD) Keeps The Downtrend

Craig Erlam Craig Erlam 12.09.2022 15:00
Oil higher despite demand concerns Oil has recovered earlier losses to trade around 1% higher on the day. Crude could extend its winning run to three sessions if it holds on, recovering from the lows which came on the back of lower global growth expectations and Covid lockdowns in China. Those restrictions could see annual Chinese demand fall for the first time in 20 years in a further sign of the struggles facing the world’s second-largest economy. While the focus may be on the demand side at the minute, we can’t ignore OPEC+ and its recent warnings about volatile price action and the disconnect with fundamentals. The group sent a warning shot earlier this month and may be tempted to send another prior to the October meeting. The recovery in the price may be supported by that, alongside a broader improvement in risk appetite in the markets and a weaker dollar. Gold’s cautious recovery Gold is continuing to enjoy a small recovery, albeit one that is not without resistance. Since hitting a bottom earlier this month, it’s been a stuttered rebound in gold which perhaps highlights the hesitance to get behind it in the markets. The dollar has pared gains in recent days which has helped gold to add to those gains but even now it’s seeing strong resistance around $1,730 which was previously a key level of support. We could see it overcome that if the dollar continues to trend lower but that ultimately depends on the US inflation data tomorrow. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Asia morning bites - 16.05.2023

Nintendo And Sales Success, Natural Gas Prices In Europe Trade At Their Lowest

Saxo Bank Saxo Bank 13.09.2022 09:35
Summary:  The equity market rally extended further yesterday, in part on hopes that Ukrainian battleground successes bring the chance of the war ending sooner rather than later and as natural gas prices in Europe trade at their lowest in more than a month. Today’s August US CPI release will be the critical event risk for whether the improvement in sentiment can extend. A hot core CPI number could yet spoil the party, while another soft number like July’s could boost the “peak Fed” narrative for a while and see the rally extend if treasury yields also drop in response.   What is our trading focus? Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) US equities extended their gains yesterday with S&P 500 futures rallying another 1.5% closing at 4,130. This morning the index futures are continuing higher as the market is clearly positioning itself for a positive US August inflation figure later today which could see S&P 500 futures extend to 4,200. It is worth keeping in mind that the medium-term outlook has not changed much on inflation and a significant slowdown in the US releasing its oil reserves could quickly add renewed pressure on energy prices. But the key event to watch today is the US August CPI report out at 12:30 GMT. Hong Kong’s Hang Seng (HSIU2) and China’s CSI300 (03188:xhkg) Hong Kong, Shanghai, and Shenzhen returned from a long weekend and traded moderately higher, Hang Seng Index +0.4%, CSI 300 +0.7%. HSBC (00005:xhkg) climbed 1.8% after its CFO said the bank was considering resuming share buybacks in the second half of next year and raising staff pay in 2023. Alibaba (09988:xhkg) gained 2.4%. NIO (09866:xhkg) jumped 17.2% following analysts reiterating “buy” on the EV maker.  Chinese biotech stocks traded in Hong Kong fell after US President Biden signed an executive order to develop a strategy to “mitigate risks posed by foreign adversary involvement in the biomanufacturing supply chain”, Wuxi Biologics -18.4%, Wuxi AppTec (02359:xhkg) – 14.4%, Genscript Biotech (01548:xhkg) -8.4%.  USD status, please European currencies surged yesterday on hopes that Ukrainian battlefield successes will compound and bring peace sooner rather than later. EURUSD rose up through key local resistance at 1.0100, but the move didn’t well, with plenty of backfilling. Elsewhere, the USD is in technical limbo in pairs like USDCAD (the 1.3000 area refusing to completely let go) and AUDUSD (a strong sense that the choppy bearish trend is ending would be a solid surge-and-hold above 0.7000.) Today’s US CPI release could give us a firmer sense of USD direction, with weaker inflation across the board relative to expectations and an easing back lower of treasury yields likely required to take the USD firmly lower. JPY crosses back higher as yields rise Expect JPY crosses to the be the most sensitive to any sharp move in US treasury yields off the back of the US August CPI data today. After surging to new local highs yesterday, the JPY bounced back a bit. The focus in USDJPY is on the cycle top near 145.00, a break of which likely sets the clock ticking for actual market intervention from Japan’s ministry of finance. Gold (XAUUSD) and Silver (XAGUSD) Gold rose on Monday as the dollar extended its retreat from a record high ahead of US inflation data due later today, which could potentially slow down the pace of Fed’s rate hikes if the headline print is softer than expected. Gold tested $1734, the 21-day SMA and 38.2% retracement of the August slump, and after getting rejected it retraced to $1720 during Asian trading. Silver meanwhile jumped 5% before running into profit taking around $20 with the added support from signs of a tightening copper market and short covering from speculators who in the week to September 6 raised their short bets to a three-year high. Focus on US CPI and its impact on the dollar and future rate hike expectations. Crude oil (CLV2 & LCOX2) Crude oil continues to trade above levels that otherwise could signal additional weakness amid worries about demand from China due to harsh anti-virus restrictions and the world in general as central banks attempt to dampen inflation by lowering economic activity through aggressive rate hikes. Instead, the oil market, just like most other commodities, has received support from a weaker dollar and fading prospect of an Iran nuclear deal anytime soon. However, the potential for a fresh and strong upside push in crude oil has faded as the world is going through a period of lower growth. Focus being the collapse of Russian defenses in Ukraine and the response from Moscow, the impact of a potential price cap on Russian oil, and monthly oil market reports from OPEC today and IEA tomorrow. US Treasuries (TLT, IEF) The 10-year US Treasury benchmark traded steady near the highs for the recent cycle above 3.30% after an auction of 10-year T-notes yesterday saw demand near the lower end of the range of recent months. A 3-year treasury auction yesterday saw better demand metrics. Treasury traders are watching today’s important US CPI release for clues on whether yields will continue to rise toward the cycle top at 3.50% or ease back again. A 30-year T-bond auction is up after the CPI release today. What is going on? Gloomy economic outlook for the United Kingdom According to the Office of National Statistics, UK GDP grew only 0.2 % month-over-month in July. This is less than expected (0.4 % month-over-month). The weakness is mostly centered on the industry and the construction sector. This is worrying. There is no big bank holiday effect. However, there is anecdotal evidence of a reduction in demand for power because of cost, but it was also a hot month. In addition, the UK July industrial production fell 0.3 % month-over-month versus expected +0.3 %. Expect negative print in the eurozone for the same period too. Ocado sees big miss in Q3 on revenue The UK online grocery retailer reports revenue of £532mn vs est. £557mn as the cost-of-living crisis bites the UK consumer. Ocado sees the value of the average basket down by 6% and energy costs are putting pressure on the operating margin. Nintendo shares surge 5% on game launch record The Japanese game developer announced its biggest Switch console game launch success Splatoon 3 with 3.45mn sold units in Japan in its opening weekend. The success is building on the previous years of strong sales figures for its Switch console and games sold on the console. Shares are up 745% over the past 10 years excluding dividends. Oracle hit expectations in Q1 results The software maker was solid in its performance in its FY23 Q1 results (ending 31 August) delivering $11.4bn in revenue up 18% y/y. The 15-17% revenue growth guidance for the current quarter is also in line with estimates and Oracle indicated that the acquisition of Cerner was going according to plan providing the company with more strengths in its cloud offering. California’s electricity infrastructure is under severe tension According to data released over the weekend by California Independent System Operator, demand on California’s power grid hit an all-time high on 6 September above 50,000 MW. The last two times it was close to this threshold was in 2007 and in 2017. The situation is getting worse and worse. EU proposes mandatory cuts to power use and profit levies It is expected that the EU draft energy plan will include mandatory power demand cut, an “exception and temporary” levy on oil, gas, coal and refining companies, as well as revenue caps for non-gas fuelled power generators. There is likely to be opposition from some of the member states, as the plan is detailed out tomorrow. A rare “triple-dip” La Ninã spanning three northern hemisphere winters is coming Changing temperatures around the world have led to several climate emergencies so far in 2022, from historic flooding, above average temperatures and drought. Parts of the world are expected to experience severe weather for the rest of the year and into 2023, as part of a rare "triple dip La Niña" event according to the World Meteorological Organization (WMO). In Australia it may lead to heavy rain and flooding in the coming months while South America and equatorial Africa could see a repeat of the droughts experienced during the past couple of years. A development that could strengthen concerns about a global food crisis with inventories of several key food items falling to a multi-year lows. Japan producer prices remain above expectations Japan’s August PPI was up 9.0% y/y (vs. 8.9% y/y expected) while last month’s figure was also revised higher to 9.0% y/y from 8.6% y/y previously. The m/m print was slightly softer than expected at 0.2% vs. 0.4% but continued to show rising cost pressures amid the surge in commodity prices and a weaker yen. This suggests more CPI pain is in the pipeline, and the resolve of Bank of Japan to maintain accommodative policy will continue to be tested. New York Fed 1-year consumer inflation expectations at 10-month lows The latest NY Fed consumer inflation expectation gauges declined sharply, suggesting easing price pressures. Expectations for US inflation over three years annualised fell to a two-year low at 2.8% in August, while the one-year ahead gauge was at 5.7%, a 10-month low. Meanwhile, inflation expectations on the five-year horizon fell to 2% annualised from 2.3% previously, suggesting that inflation expectations remain anchored. What are we watching next? U.S. August CPI is out today This is a first estimate and the latest release before the Federal Reserve’s September 20-21 meeting. In July, CPI rose 8.5 % on a yearly basis (much slower than the 9.1 % increase in June). The economist consensus expects inflation to continue decelerating at 8.1 % in August. But core CPI will likely be up. This shows that inflation is broad-based and also expanding into the services sector, for instance. At Saxo Bank, we believe the peak in inflation has passed in the United States in June. But this should not influence the path of monetary policy tightening in the short-term. Shanghai Cooperation Organization meeting on 15-16 September This the first time since 2019 that Asian leaders are meeting in person in a bigger strategic forum. Xi Jinping and Vladimir Putin are officially joining the summit and India’s Modi is expected to join as well. Given the recent military success in Ukraine, the pressures are mounting on Russia and Putin Earnings to watch The next important earnings release to watch is Inditex, one of Europe’s largest fashion retailers, which is expected to report revenue growth of 12% y/y in FY23 Q2 (ending 31 July) but with the operating margin expected to show downside pressure. Wednesday: Inditex Thursday: Polestar Automotive, Adobe Economic calendar highlights for today (times GMT) 0800 – Norway Aug. Region Survey 0900 – Germany Sep. ZEW Survey 1000 – US Aug. NFIB Small Business Optimism 1230 – US Aug. CPI 1700 – US 30-year T-bond Auction 2030 – API's Weekly Report on US Oil and Fuel Inventories During the day: OPEC’s Monthly Oil Market Report Follow SaxoStrats on the daily Saxo Markets Call on your favorite podcast app: Apple  Spotify PodBean Sticher   Source: https://www.home.saxo/content/articles/macro/market-quick-take-sep-13-2022-13092022
Swiss Pension Fund Publica Will Increase Its Share Of Gold To 1%

Price Of Gold: What If Inflation Doesn't Retreat?

Craig Erlam Craig Erlam 13.09.2022 15:31
Oil steady after rebound Oil prices are relatively steady so far today after rebounding strongly in recent days. An improvement in risk appetite in the markets combined with a softer dollar may have contributed to the crude recovery. Especially when combined with another stall in negotiations between the US and Iran over the nuclear deal and recent warnings from OPEC+ about output. The price of Brent was trading near six-month lows prior to the rebound and that may have got traders a little nervous. Gold steady ahead of the inflation report Gold is relatively flat on the day after recovering well in recent days. A weaker dollar and stable US yields have aided the moves in the yellow metal but we are seeing that stall ahead of the inflation data. The near-term outlook will be heavily influenced by the August report, especially if we see another sharper deceleration in price growth. If inflation doesn’t retreat as much as expected, that disappointment could hit gold hard and potentially draw focus back towards $1,680 where it previously saw strong support. For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/ This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Oil prices steady, gold eyes US inflation - MarketPulseMarketPulse
5% for the US 10-Year Treasury Yield: A Realistic Scenario

Eyes On US Inflation Data And Gold & Silver Benefit From Softer USD

Swissquote Bank Swissquote Bank 13.09.2022 14:16
Global indices made a solid start to the week. The EuroStoxx 600 closed yesterday 1.76% higher on news that the Ukrainians are doing well pushing back the Russians in territories they launched a counteroffensive attack. The S&P500 and Nasdaq advanced more than 1%, despite chatter of rail strike in the US. Hope of softer US inflation is what keeps the bulls running. US inflation data US inflation data is due today, and the CPI is seen easing toward 8.1% in August versus 8.5% printed a month earlier, and 9.1% peak printed the month before. A second month of soft inflation read has the power to soften the Fed hawks and increase the bets of softer rate hikes beyond September, whereas a figure above expectations, or worse, a figure above last month’s read could snap the latest rally and send the stocks tumbling. We are tilted toward a softer read than not. Hope of a soft inflation data is also what’s pulling the US dollar lower across the board. The dollar index tipped a toe below the 108 mark yesterday, while the EURUSD made an attempt above its 50-DMA, as news that Ukrainian troops are being successful in their counteroffensive attack, and chatter that voices are rising in Russia against the regime’s strategy in Ukraine, brought forward the possibility of Russia being defeated in Ukraine. Cable flirts with the 1.17 level, the dollar-swissy retreated to 0.95 and the USDCAD slipped below 1.30. The American crude, gold and silver are better The American crude rallied more than 2% yesterday on improved market sentiment, and flirted with the $90 offers, without however being able to clear them. Gold and silver are also better bid into the inflation data, thanks to a broadly softer US dollar. Watch the full episode to find out more! 0:00 Intro 0:25 Equities extend gains 0:58 … despite discouraging news for US retailers 2:25 US inflation is all that matters 6:20 USD soft pre-CPI, EUR gains on Ukraine news 7:15 Pound firmer but… 8:40 Crude oil flirts with $90 9:00 Gold & Silver benefit from softer USD Ipek Ozkardeskaya Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020. #USD #inflation #EUR #CAD #CHF #GBP #Gold #XAU #Silver #XAG #crude #oil #EuroStoxx #SPX #Dow #Nasdaq #investing #trading #equities #stocks #cryptocurrencies #FX #bonds #markets #news #Swissquote #MarketTalk #marketanalysis #marketcommentary ___ Learn the fundamentals of trading at your own pace with Swissquote's Education Center. Discover our online courses, webinars and eBooks: https://swq.ch/wr ___ Discover our brand and philosophy: https://swq.ch/wq Learn more about our employees: https://swq.ch/d5 ___ Let's stay connected: LinkedIn: https://swq.ch/cH        
Yen (JPY) Takes A Stab At Resilience, The Grains Sector Has Survived Well

Yen (JPY) Takes A Stab At Resilience, The Grains Sector Has Survived Well

Saxo Bank Saxo Bank 14.09.2022 08:55
Summary:  Equity markets were slammed for their worst losses in more than two years yesterday on a shocking August US CPI print, which showed core inflation rising at twice the anticipated pace for the month. This was a rude shock after a recent strong rally in equities, and US treasury yields jumped, and the US dollar soared as the market rushed to price in the risk that the Fed might hike 100 basis points next week.   What is our trading focus? Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) US equities erased most of the gains since 6 September as the market’s positioning ahead of the US August CPI report was completely wrong. Not only did the headline inflation figures not fall m/m, but the core figure is up 0.6% m/m and has been fluctuating around 0.5% m/m for a year suggesting that inflation is getting entrenched at a level suggesting 5-6% annualised inflation in the US. The Fed Funds futures curve immediately shifted downwards lifting peak Fed funds rate at close to 4.5% from around 4% the day before the inflation report. S&P 500 futures tumbled 5.4% from its intraday peak and Nasdaq 100 futures plunged 6.7% from its intraday high. The 3,900 and 12,000 levels are the key levels to watch on the downside in S&P 500 futures and Nasdaq 100 futures respectively. Hong Kong’s Hang Seng (HSIU2) and China’s CSI300 (03188:xhkg) Shares traded in Hong Kong, Shanghai, and Shenzhen declined on the back of the worst day in more than two years last night in US equities, with Hang Seng Index at -2.6% and CSI 300 -1.2%. Among the top losers, Techtronic Industries (00669:xhkg) plunged 10.6%, Hua Hong Semiconductor (01347:xhkg), Bilibili (09626:xhkg) and Baidu (09888:xhkg) dropped more than 5%, JD.COM (09618:xhkg) and Alibaba (09988:xhkg) slid about 4%. Tencent (000700:xhkg), -1.4%, had an educational game being approved under a company controlled by Tencent’s executives including co-founder Pony Ma. This is the first time Tencent got a game approval this year though being an educational game, it will unlikely be a significant money-making title. CNOOC (00883:xhkg) and COSCO Shipping Energy outperformed, rising 2%-3%. A typhoon is approaching Shanghai and Ningbo causing major container ports in Shanghai and Ningbo to suspend operations. USD rips back higher – suddenly threatening cycle top after CPI data After the shocking August CPI number from the US yesterday, the US dollar soared higher, taking EURUSD all the way back below parity after nearly trading 1.0200 earlier this week. Elsewhere, the USD was universally higher, with a pair like AUDUSD slamming all the way to the low 0.6700's and therefore not far from the cycle low, while NZDUSD actually posted a cycle low, and GBPUSD trading south of 1.1500 after trading north of 1.1700. Moves by the Bank of Japan and verbal intervention from the Japanese Ministry of Finance helped temper the USD move this morning (more below). Now the focus shifts to next week's FOMC meeting, where the market is now pricing the rising risk that the FOMC could hike 100 basis points. JPY takes a stab at resilience on the anticipation of intervention The Bank of Japan carried out a “rate check” in the FX market, which is widely seen as a precursor for actual market intervention. This tamed the USDJPY move higher from sub-142.00 levels to nearly 145, as the gains were pared back to 144.00, with the JPY also firmer broadly. Finance Minister Suzuki said nothing could be ruled out in response to the weakening JPY and that if the current trend persisted, stepping into markets is an option. But as past experience has shown, intervention often only creates temporary volatility if the underlying issue is not addressed - in this case, the Bank of Japan's insistence on maintaining very low rates and controlling yields out to 10 years. If yields continue to rise globally, Japanese officialdom will have an enormous and likely unwinnable fight on its hands if the Bank of Japan fails to change its policy. Gold (XAUUSD), Silver (XAGUSD) and copper (COPPERUSDEC22) ... all tumbled following the stronger than expected US CPI print, thereby reversing some of the recent weak dollar-led gains. Prior to the release copper had been on a tear reaching $3.7/lb as the LME market continued to signal the tightest market conditions since November on increased demand from China. Gold trades near $1700 and close to the current floor around $1680 after the CPI print strengthened the view the FOMC will have to remain hawkish and continue to aggressively hike rates. However, the risk to economic growth while inflation remains stubbornly high may bring back worries about stagflation, a development that may lend support to investment metals. Continued focus on the dollar and the markets pricing of future inflation expectations. Crude oil (CLV2 & LCOX2) Crude oil traded higher on Tuesday before the hotter-than-expected US CPI print helped send most commodity prices, including oil, lower on fears aggressive rate hikes could curb demand. Earlier the market traded up after OPEC maintained their 2023 outlook for a 2.7 million barrel per day increase in global demand. The EIA delivered the same message last week and the IEA is likely to do the same today when their monthly oil market report is released. Developments that highlight the current discrepancy between the (lower) price action and what these major forecasters are seeing. A recovery later in the day was supported by the Biden admin saying it will consider starting refilling strategic reserves when WTI falls below $80. Ahead of today’s EIA stock report, the API reported a 6m bbl crude stock build, a 3.2m bbl drop in gasoline and 1.8m bbl build in distillates. US Treasuries (TLT, IEF) Treasury yields jumped yesterday on the shocking August US CPI data, with the yield curve flattening aggressively as the hot data point saw the market rushing to price in the risk of more aggressive moves to counter inflation at coming meetings. The 10-year yield was taken back toward the cycle top from mid-June at 3.50%. A further rise above this yield level will continue to drive the risk of weaker sentiment and USD strength. What is going on? US August CPI shocks with high core inflation reading The headline US CPI data came in slightly above expectations, with a year-on-year reading of 8.3% vs. 8.1% expected and a month-on-month reading of +0.1% vs. -0.1% expected, a real surprise given sharp drops of late in gasoline prices. But the real shock was the core Ex Food and Energy inflation reading of +0.6% month-on-month, twice what was expected. This triggered an enormous slide in risk sentiment as the market rushed to price the risk that the FOMC might hike as much as 100 basis points next week. As of this morning, about 85 basis points is priced for the meeting. The grains sector maintained a bid on Tuesday ... while most other commodities took a tumble after the US CPI print once again raised concerns about aggressive growth and demand killing rate hikes. With demand being relatively constant the grains sector held up well as the sector continued to focus on supply risks and dwindling inventories. The US Department of Agriculture this week slashed its estimates for soybean supplies from the US, the second-largest producer after Brazil where a lingering “triple-dip” La Nina repeat could bring dry conditions in the coming months. In addition, wheat exports have been cut because of the war in Ukraine, and there’s uncertainty over Ukraine’s grain export corridor after criticism from Putin. Inditex 1H revenue beats estimate The Spanish fashion retailer delivered first-half revenue of €14.9bn vs est. €14.6bn on top of delivering EBITDA margin of 27.1% vs est. 26.8%. Inditex reiterates guidance of online sales exceeding 30% of revenue by 2024. New lockdowns in China Two cities around Beijing announced lockdowns due to Covid risks. Shijiazhuang (over 2.3 million inhabitants) asked all residents of Yuhua district to work from home for a period of three days (expected to end on Friday morning). Sanhe (around 440,000 inhabitants) implemented a full lockdown of its entire population at least until Saturday morning. This underscores the supply chain risks during the winter period in the event China experiences a bigger Covid outbreak. UK August CPI comes in slightly above expectations at core UK inflation came in at 9.9% on the headline versus a slightly higher print expected, but the core inflation level rose to a new cycle high of 6.3%, just above the 6.2% expected. Price pressures are likely to remain elevated this month as well, despite some softening in fuel prices, as food and services costs continue to rise. Further gains in inflation can be expected in October, but the capping of household energy bills may help to soothe inflationary pressures thereafter. Cheniere was the one shining light on Wall Street overnight Cheniere, the US’ biggest LNG exporter, saw its shares rise 3.1% yesterday while markets saw a sea of red when US inflation data came out higher than expected. The highlights the fact that energy companies can and have been able to outperform the market. The largest US exporter of liquefied natural gas boosted its full-year 2022 profit forecast beyond analysts’ expectations as shipments are already set to depart their dock sooner than anticipated. What are we watching next? Shanghai Cooperation Organization meeting on 15-16 September This the first time since 2019 that Asian leaders are meeting in person in a bigger strategic forum. Xi Jinping and Vladimir Putin are officially joining the summit and India’s Modi is expected to join as well. Given the recent military success in Ukraine, the pressures are mounting on Russia and Putin Ethereum merger will draw attention The Ethereum blockchain’s much-anticipated software upgrade, the so-called Merge, is expected to take place tomorrow morning, according to its core developers. The new system, known as "proof-of-stake", will slash the Ethereum blockchain's energy consumption by 99.9%, developers say. Most blockchains, including Bitcoin's, devour large amounts of energy, sparking criticism from some investors and environmentalists. The merge could make Ethereum more favourable to pension funds and other institutional investors that are under the scanner for environmental concerns, but there is also come skepticism on how scalable Ethereum could become and if it becomes more susceptible to attacks by hackers. France is expected to enter a recession next year Barclays is the first major international bank to forecast a recession in France next year (2023 GDP growth at minus 0.7 %). This is highly likely, in our view. But it is certainly too early to assess the depth of the recession at this stage. It will depend on the evolution of the energy crisis and the risk of energy rationing. Forecasting is always a complicated task. This is even more complicated now due to the elevated level of uncertainty regarding the short-term economic path. Expect other European countries to enter a recession next year (the United Kingdom, Germany, Hungary etc.). Earnings to watch Inditex has already reported before the European equity market opens (read earnings review above), so the next earnings release in focus is Adobe tomorrow. Analysts expect revenue growth of 12.6% y/y with operating margin jumping back again following cost reduction exercises. The key risks for Adobe are the strong USD, falling technology spending, and lower advertising growth lowering demand for content creation. Today: Inditex Thursday: Polestar Automotive, Adobe Economic calendar highlights for today (times GMT) 0800 – IEA's monthly Oil Market Report 0900 - Eurozone Jul. Industrial Production 1230 - US Aug. PPI 1230 - Canada Jul. Manufacturing Sales 1430 - US DoE Weekly Crude Oil and Product Inventories 1430 - ECB's Villeroy to speak 2245 - New Zealand Q2 GDP 2350 - Japan Aug. Trade Balance 0120 - China Rate Announcement 0130 - Australia Aug. Employment Data  Follow SaxoStrats on the daily Saxo Markets Call on your favorite podcast app: Apple  Spotify PodBean Sticher     Source: https://www.home.saxo/content/articles/macro/market-quick-take-sep-14-2022-14092022
Gold Is Showing A Good Sign For Further Drop

The Gold (XAU/USD) Has The Wrost Conditions, The Bulls Can Show Weakness

InstaForex Analysis InstaForex Analysis 14.09.2022 12:17
The "believe it or not" game ended badly for most financial assets, which turned a blind eye to the "hawkish" rhetoric of Fed officials. Yes, most of them did not indicate how much the Central Bank is going to raise the federal funds rate in September, by 50 or 75 bps, but the words that the work has not been done yet deserve attention. Stock markets and gold did not believe the Fed and paid the price. Only the Treasury market turned out to be right—the Fed does not throw words into the wind. The slowdown in consumer prices from 8.5% to 8.3% in August was more modest than the 8% predicted by Bloomberg experts. Core inflation, on the other hand, accelerated faster than their estimates, which was the main driver of the worst peak in XAUSD since mid-August. Then, too, the inflation data knocked out the bulls. History doesn't repeat itself, it rhymes. The slowdown in inflation expectations from the New York Federal Reserve for the coming year from 6.2% to 5.7%, for three years from 3.2% to 2.8% and for five years from 2.3% to 2%, coupled with an increase in nominal rates on US Treasury bonds, lead to an increase in real yields to the maximum levels from 2018. Dynamics of real yields of US bonds If four years ago, after several increases in the federal funds rate, the Fed found financial conditions too tight and marked a dovish turn, now it will not do this. "Don't let inflation fool you," FOMC member Christopher Waller said ahead of the CPI data release. In order to reset the rate of monetary restriction, several reports are required to convince the underlying indicator to confidently head towards the 2% target. The August statistics show the opposite. High inflation is taking hold in the US economy, requiring new firepower from the Fed. CME derivatives give a 35% chance of a 100 bps increase in the federal funds rate in September, finally discarding the idea of 50+ bps. The market believes borrowing costs will rise to 4.3% in early 2023. The 4.5% level, which previously seemed unrealistic, is now widely discussed among investors. Previous FOMC forecasts included 3.8% at the end of 2022, but it is likely to rise in September, which will be good news for the US dollar and bad news for gold. The Fed's aggressive monetary tightening, leapfrogging nominal and real Treasury yields, and the USD index near 20-year highs are the worst environment imaginable for XAUUSD. The inability of the precious metal to cling to $1,700 an ounce will be evidence of the weakness of the bulls and will open the way for it in the direction of $1,600. Technically, on the daily chart, quotes for the third time in a row over the past couple of weeks have approached the lower limit of the fair value range of $1,692–1,754 per ounce. A break of support at $1,692 will increase the risks of implementing the target by 161.8% according to the AB=CD pattern and will become the basis for building up previously formed shorts.   Relevance up to 09:00 2022-09-19 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. Read more: https://www.instaforex.eu/forex_analysis/321660
Gold Has A Chance For The Rejection Of The Support

XAU/USD: What's Keeping Price Of Gold Away From Rising?

FXStreet News FXStreet News 14.09.2022 16:41
Gold reverses an intraday dip to sub-$1,700 levels, though struggles to gain any meaningful traction. A modest USD weakness offers some support; bets for more aggressive Fed rate hikes continue to cap. Signs of stability in the equity markets also suggest that the path of least resistance is to the downside. Gold shows resilience below the $1,700 mark for the second successive day and attracts some dip-buying on Wednesday. The XAU/USD sticks to a mild positive bias through the early North American session, though seems to struggle to capitalize on the move and remains below the $1,710 level. Following the previous day's stronger US CPI-inspired rally, the US dollar edges lower and turns out to be a key factor offering some support to the dollar-denominated commodity. The modest USD downtick lacks any obvious fundamental catalyst and is more likely to remain limited amid expectations that the Fed will keep raising interest rates at a faster pace to tame inflation. The implied odds for a full 1% rate hike at the September FOMC meeting stands at 34%. Moreover, the markets have also been pricing in another 75 bps rate hike move in November. This, in turn, lifts the yield on the rate-sensitive two-year US government bond to levels last seen in November 2007 and the benchmark 10-year Treasury note holds steady near the YTD peak touched in June. The prospects for a more aggressive policy tightening by the Fed, along with elevated US Treasury bond yields, favours the USD bulls and caps the non-yielding gold. Apart from this, a modest recovery in the risk sentiment - as depicted by signs of stability in the equity markets - further contributes to keeping a lid on any meaningful upside for the safe-haven precious metal. Looking at the broader picture, gold has been oscillating in a familiar band over the past two weeks or so. Given that the XAU/USD, so far, has been struggling to gain any meaningful traction, the range-bound price action might still be categorized as a bearish consolidation phase. This, in turn, suggests that the path of least resistance for the commodity is to the downside.
At The Close On The New York Stock Exchange Indices Closed Mixed

On The New York Stock Exchange, The Securities Rose Yesterday

InstaForex Analysis InstaForex Analysis 15.09.2022 08:46
At the close in the New York Stock Exchange, the Dow Jones rose 0.10%, the S&P 500 rose 0.34%, and the NASDAQ Composite rose 0.74%. Chevron Corp was the top gainer among the components of the Dow Jones index today, up 3.86 points or 2.42% to close at 163.27. Quotes Johnson & Johnson rose by 3.33 points (2.06%), ending trading at 164.66. Merck & Company Inc rose 1.36 points or 1.59% to close at 86.95. The losers were shares of Honeywell International Inc, which lost 5.01 points or 2.71% to end the session at 179.97. 3M Company was up 2.44% or 2.94 points to close at 117.53, while Dow Inc was down 1.67% or 0.80 points to close at 47.07. . Leading gainers among the S&P 500 components in today's trading were Coterra Energy Inc, which rose 7.22% to hit 32.23, APA Corporation, which gained 6.72% to close at 41.74, and shares of Moderna Inc, which rose 6.17% to end the session at 139.40. The biggest losers were Nucor Corp, which shed 11.31% to close at 120.71. Shares of Centene Corp lost 6.79% to end the session at 83.92. Quotes of DISH Network Corporation decreased in price by 6.27% to 17.18. Leading gainers among the components of the NASDAQ Composite in today's trading were Avenue Therapeutics Inc, which rose 53.87% to hit 0.36, Aileron Therapeutics Inc, which gained 38.49% to close at 0.27, and also shares of Dawson Geophysical Company, which rose 41.44% to close the session at 1.57. The biggest losers were Neurobo Pharmaceuticals Inc, which shed 43.61% to close at 16.86. Shares of Vintage Wine Estates Inc shed 40.33% to end the session at 3.30. Quotes of Aditx Therapeutics Inc decreased in price by 38.22% to 11.43. On the New York Stock Exchange, the number of securities that rose in price (1,578) exceeded the number of those that closed in the red (1,506), while quotes of 124 shares remained virtually unchanged. On the NASDAQ stock exchange, 1,956 stocks fell, 1,770 rose, and 254 remained at the previous close. The CBOE Volatility Index, which is based on S&P 500 options trading, fell 4.07% to 26.16. Gold futures for December delivery lost 0.63%, or 10.90, to hit $1.00 a troy ounce. In other commodities, WTI October futures rose 1.68%, or 1.47, to $88.78 a barrel. Brent oil futures for November delivery rose 1.23%, or 1.15, to $94.32 a barrel. Meanwhile, in the forex market, the EUR/USD pair was unchanged 0.08% to 1.00, while USD/JPY fell 0.97% to hit 143.15. Futures on the USD index fell 0.15% to 109.36.   Relevance up to 05:00 2022-09-16 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. Read more: https://www.instaforex.eu/forex_analysis/292844
Gold's Hedge Appeal Shines Amid Economic Uncertainty and Fed's Soft-Landing Challenge

Yen's (JPY) Lack Of Conviction For Strength, Meeting Of President Xi And President Putin, Australia’s Employment Data

Saxo Bank Saxo Bank 15.09.2022 10:00
Summary:  Some respite in US equities last night, amid bottom hunting and a cooler US PPI report. UK CPI also eased from record highs, but there is nothing that could change the downtrend that remains in place globally. The USD remained steady despite threats of direct intervention by the Bank of Japan and downplaying of the 7-handle by Chinese authorities. Oil prices jumped on hopes of easing restrictions in parts of China. Focus today on Australia’s jobs report which could guide the path of rate hikes from here, but also key to watch will be the Xi-Putin meeting and how the geopolitical situation develops. What is happening in markets?   Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) clawed back from an intraday sell off on Wednesday US equity markets rebounded in late trade on Wednesday after an intraday sell off. The S&P 500 ended up 0.3%, Nasdaq 100 up 0.8%. Hedge funds did some buying in the technology space, but it wasn’t enough the significantly move the needle. The most gains were seen in the Oil and Gas sector with Energy stocks rising the most after the crude oil price rebounded 2%. The Consumer discretionary followed higher. The bearish tone remains in equities with the market toying with the idea that the Fed will raise rates by 100bps (1%). In fact there is a 25% chance the Fed will raise rates by 1% at their meeting next week. Regardless of how high they hike, 0.75% or 1%, the technical picture looks bearish as well. The S&P 500 may head back to test support at around 3,738 and June lows at 3,636. Noteworthy US market moves Moderna (MRNA:xnas) gained 6.2% after the company said it is open to selling Covid vaccines to China. Starbucks (SBUX:xnas) rose 5.5% after the company raised its sales and profit outlook, expecting 7%-9% p.a. comparable sales growth and 15-20% earnings growth over the next three years. Twilio (TWLO:xnys) jumped 10% after announcing a plan to cut 11% of its workforce. Shares of railroad operators dropped on probable labor strike, Union Pacific (UNP:xnys) -3.7%, CSX (CSX:xnas) -1%. U.S. treasuries (TLT:xnas, IEF:xnas, SHY:xnas) The flattening went on for a second day in a row as traders took to their hearts that the Fed would be hawkish for the rest of the year and the odds for cracking the economy down the road increased. While 2-year to 10-year yields climbed 2 to 4 basis points, the yield of the 30-year long bond continued to slide and finished the session 6bps lower at 3.45%.  Hong Kong’s Hang Seng (HSIU2) and China’s CSI300 (03188:xhkg) Shares traded in Hong Kong, Shanghai, and Shenzhen declined on the back of the U.S. stocks’ worst day in more than two years, Hang Seng Index -2.5%, CSI 300 -1.1%. Industrials, semiconductors, and healthcare were among the top losers, Techtronic Industries (00669:xhkg) -10.0%, Hua Hong Semiconductor (01347:xhkg) -5.7%, Wuxi Biologics (02269:xhkg) -4.9%, BeiGene (06160:xhkg) -4.5%. Tech hardware stocks declined following a 31.2% YoY falls in China’s smartphone shipments in July, Sunny Optical (02382:xhkg) -4.2%, Xiaomi (01810:xhkg) -3.3%. China internet stocks traded weak, Hang Seng Tech Index (HSTECH.I) -2.8%, Bilibili (09626:xhkg) -5.2%, Baidu (09888:xhkg) -5.7%, JD.COM (09618:xhkg) -4.2%, Alibaba (09988:xhkg) -4.1%. Fosun (00656:xhkg) tumbled 6.9% on unconfirmed reports claiming that a couple of Chinese regulators had told investors to review their equity and credit exposures to Fosun.  Bank of Japan’s rate-checking: a precursor to direct intervention or just more of verbal intervention? Even as the USD stayed firm overnight, USDJPY retreated from near-145 levels to 143 amid fears of potential FX intervention by Japanese authorities. On Wednesday, the BOJ conducted a so-called rate check in the market, asking for an indicative price at which it could buy yen, a move widely seen as a precursor to intervention. Both the finance minister and the nation’s top currency official also warned that all options were on the table. Japan last intervened to buy the yen in 1998.The 145-level is becoming the tolerance limit for Japanese authorities, but real intervention lack so far and only volatility goes up as threats ramp up. Yen lacks conviction for strength due to fundamental weakness stemming from yield differential with the US. Crude oil (CLU2 & LCOV2) Crude oil prices gained momentum overnight and remained steady in early Asian hours amid reports of the White House looking at refilling its strategic reserves at around $80/barrel. EIA’s weekly inventory report was mixed, with a large build in crude oil and a fall in gasoline. WTI futures rose above $88/barrel while Brent was above $94. Demand side factors also saw a modest improvement with Chinese city of Chengdu looking at easing restrictions from today. However, a looming rail strike in the US is likely to cause some disruption in the commodity markets.   What to consider? US core PPI hotter-than-expected US August PPI relieved some of the pressures seen from the CPI report a day earlier with the headline still in negative territory at -0.1% m/m (exp. -0.1%; prev. -0.4%) and slightly softer on a y/y basis at 8.7% (exp. +8.8%; prev. +9.8%). Core measure however beat expectations at 0.4% m/m (exp. +0.3%; prev. +0.3%) and 7.3% y/y (exp. +7.1%; prev. +7.7%). Lower energy prices helped to cool the headline print, and this may mean somewhat softer CPI prints in the coming months, but still inflation remains uncomfortably higher than the Fed’s 2% target. UK CPI cools but no relief for BOE UK inflation eased slightly to come in at 9.9% y/y (prev. 10.1%, exp. 10.0%) and 0.5% m/m (prev. 0.6%, exp. 0.6%), but it isn’t enough to call for a peak in inflation yet. Prime Minister Liz Truss announced plans to freeze an increase in energy bills due to hit in October, a move economists say will reduce the severity of a further spike in prices this winter. Even with those measures, inflation will remain above the BOE’s 2% goal well into next year. President Xi and President Putin are expected to meet in person for first time since February On the sidelines of the Shanghai Cooperation Organization summit held in Uzbekistan today and tomorrow, President Xi and President Putin are expected to meet up for the first time after Russia’s invasion of Ukraine. Analysts are expecting the two leaders to discuss the sale of Russian oil and natural gas to China and the use of the rubble and the renminbi to settle bilateral trade, in addition to their positions regarding the respective core interest of each side, i.e. Ukraine and Taiwan.  Newswires suggest that the US is considering sanctions on China A Reuters story citing an anonymous source suggests that the U.S. is considering options for a sanctions package against China as part of its attempts to deter China from taking military actions against Taiwan. The story further says that the European Union is under pressure to follow suit.  China’s state-owned media downplayed the importance of the 7-handle in the Yuan State-owned China Securities Journal downplayed the importance of whether the renminbi breaks 7 the figure or not and says that there is no basis for the renminbi to depreciate in the long run. Australia’s jobs data out today will be watched closely by the RBA, when determining how much to rise rates by in October Today’s employment data is expected to show Australia’s unemployment rate remained at 50-year lows, at 3.4% in August. The RBA will also be watching to see how much employment changed in August. In July employment fell from its record high, with 41,000 jobs lost. As for today’s figures to watch; Bloomberg’s survey of economists expect 35,000 jobs to have been added last month. If more jobs are added than expected, you may see a selloff in growth sectors, such as technology, consumer discretionary and property as the RBA will have more room to hike rates. Inversely, employment falls and or unemployment rises, the RBA will have less room to hike and as such you may see an equity rally. Currently RBA interest rate futures expect rates to rise by 0.25% next month. For those watching currency markets, keep in mind the AUDUSD is being pressured to 2-year lows. However if data is stronger than expected, you may see a short lived-knee jerk rally the AUDUSD.   For a week-ahead look at markets – tune into our Saxo Spotlight. For a global look at markets – tune into our Podcast.   Source: https://www.home.saxo/content/articles/equities/apac-daily-digest-15-sept-2022-15092022
US 20-City house prices decreased by 1.3% month-on-month

Ethereum Is Waiting For Merge, Local Governments In China Are Supporting The Demand For Real Estate

Saxo Bank Saxo Bank 15.09.2022 10:14
Summary:  Yesterday’s session was a muted affair as the market picked up the pieces in the wake of Tuesday’s huge slide in the market after a hot US August CPI number. Tomorrow sees the expiry of options on trillions of notional value in equities and futures, which may have added to the volatility this week. The US dollar remains strong as surging US treasury yields threaten new multi-year highs ahead of the US August Retail Sales release later today.   What is our trading focus? Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) US equities are scratching around after the enormous sell-off triggered by the hot US CPI release on Tuesday. Some of the scale of the volatility on Tuesday could be due to options exposures, as options of trillions of dollars on notional equities and futures expire on Friday. If the US August Retail Sales release today leads to even higher yields, stocks could find themselves under renewed pressure. The technical focus is on the recent pivot lower just below 3,900 in the S&P 500 and the 12,000 area low in the Nasdaq 100 index.  USD strength continues, threatens cycle highs A bit of consolidation yesterday in USD pairs after the huge comeback strengthening move in the US dollar in the wake of the Tuesday US August CPI release, but the USD rallied anew from late yesterday and overnight, with the action pinned near the cycle highs in some USD pairs, such as USDSEK, USDNOK and NZDUSD, but elsewhere with a bit of range left to play with. The August Retail Sales release today should garner attention as a strong number could underline the risk of higher US yields and a Fed tightening cycle that extends longer and higher than currently expected if US consumers are getting a second wind after the shock of higher gasoline prices has eased notably since the beginning of the summer. USDJPY has rebounded from yesterday’s lows as traders treat JPY crosses with care, knowing that new highs in the key USDJPY pair are likely to bring actual market intervention from the Bank of Japan/Ministry of Finance. Gold (XAUUSD) Gold trades below $1700 and close to an area around $1680 that has provided support on several occasions during the past two years. The yellow metal turned lower after Tuesday’s CPI shocker raised the prospect of a one percent rate hike next week and a terminal Fed Funds target rate around 4.5% (up 2% from the current level) before March next year. Developments and speculation that continue to underpin the dollar while undermining dollar denominated commodities, such as precious and industrial metals. Crude oil (CLV2 & LCOX2) Crude oil trades sideways with the stronger dollar and expectations for higher US rates hurting the prospect for future demand being offset by news that China’s Chengdu, locked down for weeks, plans to ease measures. The impact of China’s zero-Covid tolerance strategy this year has led to the biggest drop in oil demand in more than three decades according to the IEA. In their latest monthly oil market report, they predicted a continued slowdown in global demand ahead of year-end before accelerating to rise by 2.7 million barrels a day in 2023. Oil market tightness at the beginning of 2023 would be led by a potential 1.9 million barrels Year on year drop in Russian production by February due to sanctions. US natural gas US natural gas trades back above $9 per MMBtu and up 13% on the week as a looming rail strike (see below) would reduce supplies of coal, forcing power generators to rely more heavily on natural gas at a time where demand for cooling remains elevated due to expectations for hotter-than-normal weather across the Midwest and Eastern parts of the US. US Treasuries (TLT, IEF) US 10-year yields are now pinned at the highs for the cycle near 3.50% ahead of today’s US August Retail Sales release. Interesting to see how the market treats a strong data point – with a deepening inversion as the market prices a more aggressive Fed (as happened on the surprisingly strong CPI release Tuesday) or with the entire curve lifting. Exceptionally weak data would also be interesting as it would challenge the rising yields trend/narrative. What is going on? U.S. inflation remains broad-based The producer price index (PPI) dipped 0.1 % month-over-month in August. This reflects cheaper gasoline prices (minus 13 % in August compared to July) and to a lesser extent lower freight costs. However, less volatile elements of the index rose more than expected. The core price index was up 0.4 % on a monthly basis. The numbers like those seen in Tuesday’s US CPI report confirm that U.S. inflation is still broad-based and inflation pressures are unbroken. This opens the door to a new interest rate hike by the U.S. Federal Reserve next week. The majority of the market expects a 75 basis point hike but a minority (between 10 % and 20 % of market participants depending on which indicators we monitor) bet on a 100 basis point hike in the cards. Chinese cities move to boost housing demand Local governments across China have moved to encourage property demand after the Chinese central government called for measures to ease the crisis. Some 120 have loosened restrictions on funds for property purchases. This news supported beleaguered Chinese developers’ stocks in trading on Thursday. Ethereum Merge The second-largest cryptocurrency, Ethereum, is very close to its expected Merge, scheduled to be within the next hour. Ethereum will go through a major upgrade which fundamentally changes the way that transactions are validated on the blockchain, and it will reduce the energy consumption for running the network with around 99.95%. What are we watching next? Looming rail worker strike in the United States The two largest railroad trade unions said they will strike if the ongoing negotiations with employers about higher salaries and better work conditions fail. The strike could start as early as tomorrow and could have a very negative impact on the U.S. economy. Estimates suggest this could cost the economy nearly $2bn per day. In the United States, rail freight represents almost a third of the total domestic freight. Shanghai Cooperation Organization meeting today and tomorrow This is the first time since 2019 that Asian leaders are meeting in person in a bigger strategic forum. Xi Jinping and Vladimir Putin are officially joining the summit in Samarkand, Uzbekistan and India’s Modi is expected to join as well. Given the recent Ukrainian military success against Russia, the pressures are mounting on Russia and Putin, which will test a Russian-China "friendship” that at a meeting of Xi and Putin during the Beijing Olympics and just ahead of Russia’s invasion of Ukraine was declared to be “entering a new era” and “without limits”.  Earnings to watch Today, focus is firmly on Adobe’s earnings report today after the close. The company has seen a wild ride in recent years, pumped to remarkable heights by late 2021 due to its steady solid growth and high profitability with a backdrop of seemingly ever falling yields, only to see the share price crushed in half since its 2021 peak, first due to the seismic shift higher in yields, but compounded by faltering growth rates for the company starting two quarters ago. Today: Polestar Automotive, Adobe Economic calendar highlights for today (times GMT) 0900 – Eurozone Jul. Trade Balance 0915 – ECB's Guindos to speak 1230 – US Weekly Initial Jobless Claims 1230 – US Sep. Empire Manufacturing 1230 – US Aug. Retail Sales 1430 – EIA's Natural Gas Storage Change  Follow SaxoStrats on the daily Saxo Markets Call on your favorite podcast app: Apple  Spotify PodBean Sticher Source: https://www.home.saxo/content/articles/macro/market-quick-take-sep-15-2022-15092022
China's Deflationary Descent: Implications for Global Markets

Positive Moods On European Markets, The USD/JPY Pair And Gold Are In Downtrend

InstaForex Analysis InstaForex Analysis 15.09.2022 14:06
Strong data from the US pushed markets up ahead of next week's meeting of the Federal Reserve. Reportedly, consumer inflation rose in August, while manufacturing inflation fell by 0.1% m/m and 8.7% y/y. The positive reaction of investors obviously indicated the growing hopes of a slowdown in inflationary pressures, which led to the rise of US stocks and slight correction of Treasury yields and dollar. Now, a lot depends on the Fed's decision on raising rates, more precisely on the level at which it will increase. The central bank will base its decisions on the level of inflation. So far, stocks are trading in both directions, with Asian ones having multidirectional dynamics before the start of the European trading session. Meanwhile, local investors won back yesterday's losses in European and US stocks. Dollar is also moving in different directions after Treasury yields rose by 0.46% to 3.428%. While it is not necessary to say that trading in Europe will definitely start in a positive way, a rebound may be seen in markets if positive sentiment continues. This may happen if data on retail sales and jobless claims in the US do not turn out to be disappointing. Forecasts for today: USD/JPY The pair is trading below 0.6725. If negative trends continue, the quote may continue to decline towards 0.6685. XAU/USD Spot gold fell below 1692.50 due to the uncertainty over the results of next week's Fed meeting. Quotes may continue to drop to 1680.50.       Relevance up to 06:00 2022-09-17 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. Read more: https://www.instaforex.eu/forex_analysis/321760
Oil Could Be Ready To Pop, The Bank Of England Market Pricing Is More Mixed

US Economy, Black Gold, China And Strategic Petroleum Reserve | Gold

Ed Moya Ed Moya 15.09.2022 22:53
Oil falls as US economy slows Crude prices got knocked again as demand fears intensified after a wrath of economic data shows the US economy is slowing down. ​ Oil fundamentals are still mostly bearish as China’s demand outlook remains a big question mark and as the inflation fighting Fed seems poised to weaken the US economy. ​ The US Department of Energy also clarified that the restocking of the Strategic Petroleum Reserve (SPR) won’t happen due to prices falling at a certain level and that they won’t take action until after fiscal 2023. ​ This clarification from the DOE tentatively removed any support crude had just ahead of the $80 a barrel level. ​ Despite all the doom and gloom across the world, the oil market remains tight and prices should outperform all the other commodities. Gold Gold got pummeled ruthlessly after another round of economic data supported the Fed’s case to remain very aggressive with fighting inflation. While both Fed regional surveys offered some relief that price increases are slowing, the rest of the data paints a picture of a very strong labor market that is still seeing decent spending and production activity. Until the bond market selloff eases, gold is in trouble. ​ Once gold fell below the prior summer low of $1690, momentum selling took over. ​ If Treasury yields keep going up that will keep the selling pressure on bullion. Gold should find support soon as investors will refrain from any overweight positions until they hear directly from the Fed. ​ The last hurdle for gold is in the University of Michigan inflation expectations. ​ Unless markets are surprised with an increase in inflation expectations, gold should stabilize above the $1650 region. ​ ​ This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Crude lower, gold pummeled - MarketPulseMarketPulse
Steady BoE Rate Expectations Amid Empty Event Calendar in the UK

China Is Ready To Work With Russia, Ethereum Merge Successfully Completed

Saxo Bank Saxo Bank 16.09.2022 09:58
Summary:  U.S. equity markets declined again on the economic good news which added to investors’ worries about more and for longer rate hikes from the Fed. The Chinese Yuan weakened and broke the 7-handle. China's August activity data is scheduled to release today. What is happening in markets?   Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) face further pressure as US eco news brightens        US equities closed lower on Thursday with the S&P500 losing 1.1% taking its weekly loss to almost 4%, while the Nasdaq fell 1.4%, losing 4.6% across the week, with both major indices eroding last week’s gain. Investors are growing cautious, as new economic data gives the Fed room to raise rates, and keep them higher for longer to control inflation. Retail sales unexpectedly rose in August, showing consumer spending is far from collapsing and jobless claims fell for the fifth straight week, suggesting employers worker demand remains healthy despite an uncertain outlook. For the market to turn around, it will need to see earnings multiples expand, as that supports share price growth. And we need to see earnings per share move up from a decline, to growth. But if the Fed keeps hiking rates, and the energy crisis continues, this scenario means tech stock earnings multiples are likely to see earnings per share (EPS) growth pressure. On the flip side, EPS in energy continues to gain momentum. Big movers in US shares Adobe shares fell 17%, weighing on the Nasdaq and S&P 500 after the software giant announced $20 billion deal to buy design start up Figma. The weakness flowed through to other tech stocks, with Apple shedding 1.9% and Salesforce sliding 3.4%. Meanwhile oil stocks also copped selling after the WTI oil price fell below $86 after the US announced it would restock oil reserves but without a trigger price. Bank stocks were a bright spot, with Goldman Sachs and JPMorgan rising more than 1% apiece. U.S. treasuries (TLT:xnas, IEF:xnas, SHY:xnas) The U.S. short-end yields continued to charge higher, 2-year yields up 7bps to finish the session at 3.86%, flattening the 2-10 year curve to -42bps, as the 10-year yields up 5bps to 3.44%.  The 30-year yields, however remained well anchored at 3.47%, up only 1bp and not far from the pre-CPI release levels. Hong Kong’s Hang Seng (HSIU2) and China’s CSI300 (03188:xhkg) Hang Seng Index edged up by 0.4%, helped by the rise in Chinese developers, while the CSI 300 dropped by 0.9%.  Securities Times reported that more than 120 cities have relaxed providence fund policies to boost the local property markets and other media reported that a large number of cities had loosened home purchase restrictions.  Country Garden (02007:xhkg) surged by 8.7% followed by Guangzhou R&F (02777:xhkg) up 8.6%, CIFI (00884:xhkg) up 7%, China Resources Land (01109:xhkg) up 4.9%, and China Overseas Land & Investment (00688:xhkg) up 4%. Catering names gained on news that Chengdu was relaxing its lockdown, Xiabuxiabu (00520:xhkg) up 5.5%.  Li Auto (02015:xhkg) fell 2.3% as the President of the company reduced his shareholding. EV names overall were also pressured by the news that China’s ambassador to the U.S. warned against the potential risks of the US trying to cut China off the EV supply chains.  Solar names were down following reports about the European Union was going to ban manufactured goods with forced labour in them and raised concerns about much of China’s solar products originated from Xinjiang. Australia’s ASX200 The ASX200 is on tracking lower this week, after losing 0.7% Monday to Thursday with the technical indicators suggesting the market is likely to head lower from here and it could retest the lows set in June. However, it’s not all doom and gloom. We saw commodity stocks march up this week, with coal companies Coronado Global rising 13%, New Hope up 5%. It’s also worth noting these are some of this year’s best performing stocks on the ASX, with Coronado up 82%, New Hope up 182%, while the coal giant Whitehaven is up 266% YTD, supported by the coal price hitting new highs this week, as well as the coal futures price. Meanwhile, with crop prices likely to go higher amid La Nina, Agri business Elders rose 4%. Elsewhere, technical buying picked up in oil and gas companies including Woodside, supporting its shares rise ~4%, with Beach Energy following. USDCNH breaks above 7 handle USDCNH broke 7.00 and the markets is expecting little reactions from the PBOC given the latest state-owned media’s effort to downplay the importance of the 7-handle. Crude oil (CLU2 & LCOV2) Crude oil prices slumped overnight as demand concerns came back into the focus. The International Energy Agency said that China faces its biggest annual drop in demand in more than three decades as COVID-19 lockdowns weigh on growth. Oil demand could fall by 420kb/d, or 2.7% this year. This led to the IEA trimming its estimate of global demand. It now sees consumption rising by only 2mb/d. Further, supply situation also seemed to fluctuate with the US Department of Energy walking back on its SPR refill stance by saying that it didn’t include a strike price (that was said to be around $80/barrel) and it isn’t likely to occur until after fiscal 2023. WTI futures fell below $85/barrel while Brent futures touched lows of $90/barrel. Oil technical levels to watch For traders and investors, for WTI to reverse its downtrend, it needs to close above resistance at $97.66, which is what our technical analyst pointed out here. So the next level for you to watch, is if it breaks above $90.40, it would signal an uptrend, for this to occur, the market will need good news, perhaps even bright news from China, the biggest oil consumer. Regardless, right now, oil is in a bear trend and if it closes below $81.20 the bear run-lower could be extend to $78.48-$74.27. Gold (XAUUSD) The yellow metal saw a drop to $1,660/oz down more than 2% to over 2-year lows, amid expectations of more aggressive rate hikes by the Fed as strong US economic data underpinned. Markets are now pricing in a more than 75bps rate hike by the Fed at the September meeting, and a terminal rate of ~4.5%. What to consider? Mixed US data, but further upward pricing of the Fed rate path US retail sales saw the headline rising 0.3% m/m in August (exp -0.1%, prev -0.4%) but the core retail sales print was weaker than expected at -0.3% m/m (exp 0%, prev 0.0%). The slower retail spending does reflect the current slowdown in goods spending despite services remining strong and supporting the overall consumer strength in the US. Meanwhile, initial jobless claims were lower than expected at 213K (exp 226K, prev 218K). That is the lowest since early June and the 5th consecutive decline (the high reached 262K), suggesting that labor markets still remain tight. Regional Fed indices offset each other The regional Fed indices on manufacturing gave contrasting signals with the Philly Fed index falling -9.9 vs +2.8, but the Empire improving markedly to -1.5 vs -13.0 estimate. For both indices, the prices paid components did fall and has moved markedly lower over the last few months, but still remains with a positive number (i.e., more businesses reporting higher prices vs lower prices). For the Philly Fed, the price paid came in at 29.8 v 43.6. For the Empire, the prices paid came in at 39.6 vs 55.5. Australia’s latest economic news shows employment growth is slowing with the jobless rate rising for the first time in 10 months; giving the RBA less room to hike rates Australia’s unemployment rate unexpectedly rose in August, rising from 3.4% to 3.5% with less jobs being added to economy than expected (33,500 instead of the 35,000). Given employment has fallen from its 50-year peak, and job growth is slowing, the RBA effectively has a solid barrier in its way preventing it from rapidly rising rates over the coming months, with room of a 0.5% hike being taken off the table. For equity investors, this supports risk-appetite slightly increasing in the banking sector, given employment nears its peak and credit might not be squeezed as hard as feared, thus property price growth also might not continue to fall as rapidly as forecast. For currency traders, the AUDUSD sharply fell from its intraday high (0.6769) and now faces pressure back to two-year lows, where support is at 0.61358, implying it may fall 10%. Further to that, the currency pair faces downside simply as the market is pricing in 0.25% RBA hike next month, versus the more aggressive US Fed Reserve’s hike potentially being 100bps (or 1%) next week. Slower export growth, power shortage, and pandemic controls would probably have taken their toll on China’s August activity data China’s activity data for August, scheduled to release today, would probably be at risk of missing the median forecasts in the Bloomberg survey, which has industrial production at 3.8% YoY in August (vs 3.8% YoY in July), retail sales at 3.2% YoY in August (vs 2.7% YoY in July), and fixed asset investment year-to-date 5.5% YoY (vs 5.7% YoY). The heatwave-induced power shortage caused disruption to industrial production in Sichuan. The heatwave might have also caused delays in infrastructure construction which was largely outdoor and offset some of the positive impacts of accelerated credit extension. The pandemic control measures affected the manufacturing and export hub of the city of Yiwu in Zhejiang province in August. The much weaker expected export growth data for August released last week and the continuously weak data in the property market also pointed to potentially downside surprises to these forecasts.  While a favourable base effect and stronger auto sales in August could have boosted retail sales, tightened pandemic control measures might have damped catering and other services and dragged down retail sales growth.  Russian President Putin said he appreciated China’s “balanced position” on Ukraine President Xi and President Putin met on the sidelines of the Shanghai Cooperation Organization summit held in Uzbekistan.  The Russian president said he values China’s “balanced position” on Ukraine and he backs the latter’s “One China” principle and opposes “provocations” by the U.S. on the issue of Taiwan.  On the other hand, the readout released by China only did not touch on Ukraine.  As in the readout, Xi told Putin that “China is ready to work with Russia in extending strong support to each other on issues concerning their respective core interests”. China’s State Council reiterated support for the economy and opening up trade and investment In a meeting chaired by Premier Li Keqiang, China’s State Council rolled out an additional RMB200 billion relending quota to support key industries in the real economy and pledged to support international trade and open up to foreign investment. Ethereum Merge – a new chapter in crypto Yesterday, the second-largest cryptocurrency Ethereum successfully underwent its merge from proof-of-work to proof-of-stake. From consuming around 0.2% of the world’s electricity, Ethereum now consumes a fraction of that. Our Crypto analyst calls it a new chapter not only for Ethereum but crypto in general. Read more here.    For a week-ahead look at markets – tune into our Saxo Spotlight. For a global look at markets – tune into our Podcast.     Source: https://www.home.saxo/content/articles/equities/apac-daily-digest-16-sept-2022-16092022
The Forex Market Is Under Strong Pressure From Geopolitical Events And Statistics

The Largest Acquisition In The Adobe’s History, EDF’s Failure, The Drewry Index Is Down

Saxo Bank Saxo Bank 16.09.2022 10:11
Summary:  The US equity market dropped to new local lows and below key support in late trading after Fedex reported a massive miss on profits and dropped its year-ahead-forecast, citing a marked deterioration in activity over the last quarter. Elsewhere, the US dollar rose, USDCNH traded well above 7.00 and US yields remained pinned near the cycle highs after a strong weekly jobless claims report but tepid August Retail Sales data.   What is our trading focus? Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) US equities tried to tread water during the cash session yesterday but spilled lower and below the key local support (3,900 area in S&P 500 and 12,000 area in the Nasdaq 100) in late trading after Fedex reported a huge profit miss and dropped its forward revenue forecast (more below). The break below support sets the market on tilt on the quarterly “witching” day for index futures and options today. Hong Kong’s Hang Seng (HSIU2) and China’s CSI300 (03188:xhkg) Hang Seng Index fell 1% in early trading on a weakening Chinese Yuan, USDCNH surging to as high as 7.0350, but pared some losses to be down around half a per cent after the stronger than expected prints of China’s August industrial production, retail sales and fixed asset investment. CSI 300 slid throughout the session and was off 1.6% as of writing.  While other activities improved in August, the decline in the fixed asset investment in the housing sector accelerated in August and reflected a still weak property sector. USD rises to new highs against several currencies The risk off tone yesterday helped support the US dollar despite US yields trading largely sideways and a mixed bag of US economic data. The US dollar rose almost across the board, with the important exception of USDJPY, as the market is wary of the risk of official intervention. GBPUSD is back poking toward the cycle lows, while USDCAD has cleared the big 1.3200 resistance area, USDNOK rose to new local highs and NZDUSD traded to new lows since early 2020 below 0.6000. Any further deterioration in risk sentiment will likely continue to drive USD strength, with US yields also an important coincident indicator. Gold (XAUUSD) Gold slumped below support-turned-resistance at $1680 on Thursday as the market was overwhelmed by momentum and technical-driven selling related to the prospect of a 1% rate hike next week and the terminal rate, expected next March, being lifted to around 4.5%. At a near 2-½-year low, the metal has struggled to find a defense against the FOMC hawkish tone which has driven the dollar and Treasury yields sharply higher. Gold and other investment metals may struggle while the focus remains on FOMC hiking rates and not the increasingly inevitable economic fallout (see FedEx and freight rate comments below) from these actions. A weekly close below $1680 could see the market target the 50% retracement of the 2018 to 2020 rally next at $1618. Crude oil (CLV2 & LCOX2) Crude oil prices slumped again on Thursday with demand concerns once again being the focus as the market prepares for another growth dampening rate hike from the US FOMC next week and demand in China continues to linger after the IEA said the world's largest importer of oil was heading for its biggest annual drop in demand in more than three decades. The US Department of Energy meanwhile walked back on its SPR refill stance by saying that it didn’t include a strike price (that was said to be around $80/barrel) and it isn’t likely to occur until after fiscal 2023. WTI futures trades around $85/barrel with Brent holding above $90/barrel, both well above last week's lows. Ethereum The groundbreaking and long expected upgrade to the second-largest cryptocurrency, Ethereum, was rolled out successfully yesterday morning. Despite this, Ethereum has dropped more than 7 % over the past 24 hours in what seems to be a "sell-the-news" event, as the hype around the upgrade has faded. US Treasuries (TLT, IEF) US yield trade near the cycle highs at the long end of the yield curve, as we await a test of the key cycle top at 3.50%. The short end of the yield curve continues to drift higher, with the 2-10 yield curve inversion below –40 basis points and nearing the cycle low from August which saw the lowest daily close at –49 basis points. Key What is going on? Fedex falls over 15% after hours on big profit miss, withdrawing of 2023 forecasts The company CEO said that “global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the US.” The company expects that business will worsen further in the current quarter. EPS for the quarter were in at $3.44 vs. $5.10 expected despite revenue only narrowly missing expectations. Global container freight rates seeing an accelerated slump The Drewry composite container freight benchmark rate which tracks the cost of shipping containers on the busiest routes, especially from Asia to Europe and the USA slumped 8% this week to $4.9k pr 40ft box. The index is now down more than 50% from the record seen this time last year but remains around 3.5X above the pre-pandemic average. Weakness was seen on all the major China to US and EU routes. Maersk (MAERSKb:xcse), one of the world’s largest container shipping companies has seen its share price slump 38% from a March peak to a 15-month low, another sign that global trade is weakening fast following the pandemic-led boom. Adobe (ADBE:xnas) drops 17% on Figma acquisition announcement The company offered $20 billion for privately held Figma, a company offering tools for collaborating on software development. This was a half-cash, half-stock deal and was the largest acquisition in the company’s history and was some 50 times Figma’s annual revenue (and over 12 months of trailing Adobe revenue). After hours, Adobe reported earnings, with top-line growth of 12.7%, but earnings dropped –2.7%. The Figma deal looks a bit desperate and suggests that Adobe has a hard time seeing organic growth from its core business. Mixed US data, but further upward pricing of the Fed rate path US retail sales saw the headline rising 0.3% m/m in August (exp -0.1%, prev -0.4%) but the core retail sales print was weaker than expected at -0.3% m/m (exp 0%, prev 0.0%). The slower retail spending does reflect the current slowdown in goods spending despite services remining strong and supporting the overall consumer strength in the US. Meanwhile, initial jobless claims were lower than expected at 213K (exp 226K, prev 218K). That is the lowest since early June and the 5th consecutive decline (the high reached 262K), suggesting that labor markets remain tight. Xi and Putin meet in Uzbekistan China’s leader Xi Jinping and Russia’s leader Vladimir Putin met yesterday for the first time since a powwow at the Beijing Olympics in which the two leaders declared that the friendship between the two countries was “without limits”. But apparently, the situation in Ukraine is testing those limits as Putin was forced to acknowledge China’s “questions and concerns” on its invasion of Ukraine. Xi did call Putin an “old friend”, however, and said the “China is willing to work with Russia, display the responsibilities of the major powers, and play a leading role to inject stability and positive energy to a world in chaos”. Still, the general impression was one of China keeping Russia at arm’s length and unlikely to extend support for Russia’s war effort. China’s August activity data improved better-than-expected China’s activity data for August came in at stronger than expected growth rates.  Industrial production grew 4.2% Y/Y in August beating the consensus estimate of 3.8% Y/Y and improving from last month’s 3.8% Y/Y.  Higher output in automobile and power generation offset the impact from slower activities in other industries such as pharmaceuticals and computers.  Retail sales grew 5.4% Y/Y in August, well exceeding the 3.3% Y/Y median forecast from the Bloomberg survey and the 2.7% YoY in July. A favourable base effect and stronger auto sales during the month boosted retail sales and more than offset the drag from tightened pandemic control measures and a slow housing market.  Fixed asset investment grew 6.4% Y/Y in August, notably accelerating from the 3.6% Y/Y in July, led by 14.8% Y/Y growth in infrastructure and 10.7% Y/Y growth in manufacturing investments while investment in properties slowed further to a decline of -13.9% Y/Y in August from July’s -12.1%.  What are we watching next? The French historical energy provider EDF is in a difficult financial situation Last Spring, the company refused to give earnings guidance for the year. Yesterday, it announced that the impact of the shutdown of all of its nuclear reactors (due to structural corrosion issues) will likely lower its 2022 EBITDA by €29bn. In the early 2000s, EDF was one of the largest and most promising companies in the CAC 40 index. Now, it is about to be nationalized. EDF’s failure is mostly explained by poor management and the French state’s pressures over the recent years to channel investments in the green transition (mostly intermittent energy) instead of focusing on nuclear energy. This is a matter of months before the nationalisation is effective. The French state is currently EDF’s main shareholder, owing 83.33 % of the shares. The stock is up 24 % YTD at the Paris Stock Exchange due to the prospect of nationalisation. USDCNH to get increasing attention? The USDCNH rate has risen well above 7.00 now, picking up a bit of pace to the upside again this week on an extension of USD strength. The exchange rate bears watching, as past episodes of CNH volatility, especially including the 2015 shift in China’s exchange rate regime, can aggravate global market volatility and uncertainty. The key level to the upside is the 7.20 level that was nearly touched on two occasions, first in late 2019 and then again in May of 2020. Economic calendar highlights for today (times GMT) 0830 – ECB President Lagarde and ECB’s Villeroy to speak 0900 – Eurozone Final Aug. CPI 1200 – Poland Aug. Core CPI 1215 – Canada Aug. Housing Starts 1400 – US Sep. Preliminary University of Michigan Sentiment Follow SaxoStrats on the daily Saxo Markets Call on your favorite podcast app: Apple  Spotify PodBean Sticher   Source: https://www.home.saxo/content/articles/macro/market-quick-take-sep-16-2022-16092022
EM Index Inclusions and Exclusions: India Thrives, Egypt Faces Challenges

The Markets Are Concentrated On Inflation, Crude Oil Is Down

Swissquote Bank Swissquote Bank 16.09.2022 10:24
US railroad companies and the unions representing their workers reached a tentative agreement early Thursday to prevent a rail strike in the US. Avoiding a rail strike is good news, but not good enough to give a smile to investors. The markets remain too focused on inflation. Increases and decreases The S&P500 closed the session more than 1% lower, as US retail sales and jobless claims – which both hinted that the US economy remains relatively resilient to the Federal Reserve (Fed) rate hikes - didn’t help keeping the Fed hawks at bay. The US 2-year yield spiked to 3.90%, the mortgage rates in the US topped 6%, the US dollar consolidated a touch below the 110 level, Ethereum lost 10% and gold dived to $1660 per ounce. US crude took a good 4% dive. But this time, it wasn’t just the recession talk, it was because the Americans rectified a beginner’s mistake that they have made earlier this week, saying that they will refill their strategic oil reserves if prices fall below $80 per barrel. Waiting For Reports We will likely close this week on a sour note. Next on the economic calendar are the final European CPI read, which will confirm that inflation spiked to 9.1% in August, and the University of Michigan Consumer Sentiment, which will hopefully not print a significantly positive number, because the Fed hawks got strong enough the week before the Fed decision. Watch the full episode to find out more! 0:00 Intro 0:25 US rail strike will likely be avoided! 2:08 But sentiment remains sour on strong US data 3:57 World Bank points at recession 5:04 Crude oil down as Americans understand their mistake 6:41 Strong dollar weighs on major peers 6:55 Joke of the day 7:09 Ethereum down 10% post Merge upgrade 7:51 Adobe dives 17% on Figma acquisition 8:44 Watch EZ final CPI & UoM Consumer Sentiment today! Ipek Ozkardeskaya Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020. #US #rail #strike #inflation #USD #EUR #GBP #Gold #XAU #crude #oil #natgas #energy #crisis #Bitcoin #Ethereum #Merge #update #Bitcoin #Adobe #Figma #SPX #Dow #Nasdaq #investing #trading #equities #stocks #cryptocurrencies #FX #bonds #markets #news #Swissquote #MarketTalk #marketanalysis #marketcommentary ___ Learn the fundamentals of trading at your own pace with Swissquote's Education Center. Discover our online courses, webinars and eBooks: https://swq.ch/wr ___ Discover our brand and philosophy: https://swq.ch/wq Learn more about our employees: https://swq.ch/d5 ___ Let's stay connected: LinkedIn: https://swq.ch/cH
Swiss Pension Fund Publica Will Increase Its Share Of Gold To 1%

US Manufacturing Sector Overview, The Gold Price Notes A Sharp Decline

InstaForex Analysis InstaForex Analysis 16.09.2022 12:50
Yesterday, reports from the New York Federal Reserve and the Philadelphia Federal Reserve showed a mixed picture of the US manufacturing sector, with the gold market reacting with a sharp drop below the price seen in March 2021. On Thursday, two regional central banks released a review of the manufacturing sector. The New York Federal Reserve said the Empire State Manufacturing General Conditions of Business Index rose to -1.5 in September, up sharply from a fall to -31.3 in August. The data beat expectations as economists had expected the index to show a contraction of -12.7. Meanwhile, the Philadelphia Fed said the manufacturing business index fell to -9.9 in September, down from 6.2 in August. The data fell short of expectations as the consensus forecast was for a fall to around 2.8. While manufacturing activity in the New York region remains under contraction pressure, it has improved significantly since August, which saw the largest drop in survey history since the pandemic. Meanwhile, Philadelphia's manufacturing sector has been relatively volatile over the past few months. Activity recovered in August after falling to a two-year low in July. However, the August momentum was short-lived, and everything returned to July levels. Looking at the components of the Empire State survey, the New Orders index rose to 3.7 from -29.6 in August. The shipments index rose to 19.6 from -24.1. The report also notes a significant improvement in the labor market, with the employment index rising to 9.7. In terms of gold prices, the report notes a sharp decline in inflationary pressures, with the Price Paid index falling to 39.6 from 55.5 in August. Meanwhile, a survey by the Federal Reserve Bank of Philadelphia paints a slightly different picture, emphasizing that "this is the third negative index reading in the past four months." Looking at some components of the report, the new orders index fell to -17.6 from -5.1 in August. The shipments index fell to 8.8 from the previous reading of 24.8. The labor market also lost momentum: the index of the number of people employed fell to 12 compared to the August value of 24.1. As with Empire State, the Philadelphia Federal Reserve Bank survey showed a significant decline in inflation. The Price Paid index fell to 29.8 from a previous reading of 43.6.   Relevance up to 09:00 2022-09-17 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. Read more: https://www.instaforex.eu/forex_analysis/321903
Ed Moya and Jonny Hart talk the US Q3 GDP, crude oil and crypto

China: Will Jewelry Market Be Affected By The Economic Situation? | What Did Make Gold Price Decrease To Multi-Year Low?

ING Economics ING Economics 16.09.2022 14:38
The bulk of the commodities complex has come under pressure recently, with sentiment remaining fairly negative. Aluminium managed to buck the trend yesterday, settling up on the day as Chinese supply risks continue to grow China Jiangsu metal processing plant workshop Energy - China refined product export quotas Oil prices were unable to escape the broader pressure on risk assets yesterday. ICE Brent settled almost 3.5% lower on the day. Lingering demand concerns over China have hit sentiment, whilst recent weakness in refinery margins is certainly not helping. While our balance suggests a well-supplied market for the remainder of the year, the potential for OPEC+ intervention means that the floor for the market is not too far below current levels. The US Department of Energy has said that the refilling of the US Strategic Petroleum Reserves (SPR) will not be triggered by hitting a certain price level, and that the refilling will likely not occur before the end of 2023. Earlier this week, there were reports that the US was potentially wanting to refill the SPR if prices traded below US$80/bbl. ICE gasoil came under further pressure yesterday, with reports that the Chinese government may issue another batch of refined product export quotas, which could total 15mt. So far this year, three batches of quotas have been released amounting to 22.5mt, down around 39% YoY. China has been cutting export quotas in recent years to drive consolidation in the domestic refining industry as well as to tackle pollution. Suggestions are that the government is looking at a sizeable allocation of quotas to help drive growth. If confirmed, this would be welcome news for refined product markets, particularly middle distillates, which are extremely tight at the moment. Metals – tightening supply lifts aluminium prices Aluminium prices climbed amid speculation that some smelters in China’s Yunnan province may expand production cuts by 20-30% due to ongoing power rationing. Aluminium smelters in the region have already reduced their output by 10% since the weekend. The output cuts in China are coming on top of European and some North American smelter closures and curtailments over the past 12 months amid the worsening energy crisis. For copper, the latest data from the LME showed on-warrant stocks rising by 10.4kt - the biggest daily increase since June 27th - to 88.8kt with the majority of the gains reported from the warehouses in the US and Asia. Despite the increase, the cash/3M spread stays firmly in backwardation of a little over US$119/t. ArcelorMittal SA said it expects its European steel output to drop in the fourth quarter of the year amid weak demand and high energy costs. Europe’s biggest steelmaker expects its crude steel production on the continent down 1.5 million tonnes in the fourth quarter from the year before – down about 17% year-on-year. In precious metals, gold fell to its lowest level in more than two years amid tightening monetary policy in the US and Europe. Weak economic growth in China may also impact gold jewelry demand in one of the top consumers of the precious metal. Read this article on THINK TagsSPR Refined product Power shortages China exports Aluminium Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more
Gold's Hedge Appeal Shines Amid Economic Uncertainty and Fed's Soft-Landing Challenge

Chengdu Returns To Normal Life, The Entry Of Genting Group Into The Competition

Saxo Bank Saxo Bank 19.09.2022 08:30
Summary:  Sentiment in U.S. equities has been dampened by rising expectations of larger rate hikes for the rest of the year and profit warnings and depressed remarks from the management of heavy-weight companies about their business outlook and the economy. All eyes are on the FOMC meeting this Wednesday. China’s August industrial production, retail sales, and infrastructure construction surprised on the upside but housing market activities and home prices remained sluggish. What is happening in markets?   Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) are looking bearish again US equities closed off the week with the biggest loss since January after heavy-weight companies were hit by a series of company earnings and guidance woes, with their pain being compounded by rising bond yields. S&P 500 was down 0.7% on Friday and down 4.8% for the week and Nasdaq 100 dropped 0.6% on Friday and 5.8% for the week, wiping out the prior week’s gains. The Nasdaq 100 is now down 29% from its November 2021 peak and the technical indicators on the monthly chart tend to suggest further downside ahead. Big US stock movers   Last week there were a number of industrial titans, first Dow Chemical (DOW:xnys), Eastman Chemical (EMN:xnys), Huntsman (HUN:xnys), Nucor (NUE:xnys), and capped with FedEx (FDX:xnys) warning about grim demand outlook.  FedEx only missed EPS for the August quarter massively but also cut its Nov quarter EPS guidance and completely withdrew the FY2023 guidance, citing significantly worsened macroeconomic trends both internationally and in the US. FedEX tumbled 21.4% on Friday. Amazon (AMZ:xnas) declined 2.2%, following FedEx’ warning. General Electric (GE:xnys) warned the supply chain pressure is having a negative impact on profits.  Uber (UBER:xnys) dropped 3.7% after the ride-hailing services provider following a major data breach in its computer network caused by a hacker.  Amazon (AMZ:xnas) declined 2.2%, being dragged down by the woes in FedEx.  Adobe (ADBE:xnas) slid another 3.1% on Friday and a massive 19.4% in two days since the software maker announced a USD20 billion offer to acquire Figma, collaborated product design platform at 100x of the latter’s recurring revenue. For more discussion on FedEx and Adobe, please refer to Peter Garny’s note here.  Last Friday, over USD3 trillion notional of options expired on Friday and S&P3900 puts traded about 95,000 contracts.  U.S. treasuries (TLT:xnas, IEF:xnas, SHY:xnas) Trading in treasuries on Friday was mixed, with yields of -2-year and 10-year notes unchanged at 3.86% and 3.45% respectively as 5-year yields came off 3bps to 3.63%, and 30-year bonds underperformed for the first time during the week, seeing yield rising 4bps to 3.51%. Treasuries pared their early losses (higher yields) after the 5-10 year inflation expectations in the University of Michigan consumer sentiment survey fell to 2.8%, the lowest since July 2021.  The underperformance in the 30-year bonds was attributable to supply, including a USD12 billion 20-year treasury bond auction on Tuesday and expected corporate issuance of about USD20 billion this week.  The latest data shows that the holding of Japan, the largest foreign holder of U.S. treasury securities, fell USD2 billion to USD1.23 trillion and China, the second largest holder, saw its holdings increase by USD2.2 billion to USD970 billion in July.     Hong Kong’s Hang Seng (HSIU2) and China’s CSI300 (03188:xhkg) Shares traded in Shanghai and Shenzhen plunged, with CSI 300 down 2.4%.  The General Office of the State Council issued guidelines to encourage securities firms, funds, and financial guarantee companies to lower fees.  Shares of brokerage firms fell across the board in mainland bourses by nearly 5%.  East Money (300059:xsec) tumbled 10.8%. Chinese brokerage companies listed in Hong Kong also plunged, with GF Securities (01776:xhkg) down by 8.6%, CITIC Securities (06030:xhkg) down by 5.0%, Huatai Securities (06886:xhkg) down by 4.8%.  Chinese property stocks fell in both the mainland bourses and Hong Kong bourse, following the report that new home prices 2nd to 4th tier cities fell sharply again in August despite the recent relaxation of home purchases in a large number of cities.  The weakness of the property sector in the fixed asset investment data in August and the news that the city of Suzhou resumed home purchase restrictions on non-residents in four districts added to the woes in the developer space.  Country Garden (02007:xhkg) tumbled 7.6%.  The EV space declined, falling from 1% to 4.5% following the Ministry of Industry and Information Technology’s Vice Ministry said that there are “blind investments” and overlapping projects in EV in some provinces and municipalities.  In the China internet space, Kuaishou (01024:xhkg) led the charge lower, down more than 7%, as Alibaba (09988:xhkg), Tencent (00700:xhkg), Meituan (03690:xhkg), and Bilibili (09626:xhkg) down from 1.5% to 4.4%.  Australia’s ASX200 has wiped out July’s rally. Focus will be on RBA minutes released Tuesday The ASX200 shed 2.3% last week, erasing July’s gain but faring better than US equities. The market woes have not only come after Australian 10-year bond yield rose to fresh highs, up 0.2% last week, while hovering in 8-year high neighbourhood. But secondly, market sentiment has also been capped as the Fed is set to aggressively hike rates, which pressures Australia’s tech stocks, with many Aussie tech companies making the majority of their revenue from the US. And thirdly, metal commodities have come under pressure again of late, as China’s demand continues to wane. In fact, fresh Chinese export data shows their rare earths and aluminium exports surged yoy. Meanwhile total China’s imports of steel plunged 16% yoy, corn fell 44% and wheat dropped 25% yoy. The trifecta of issues is seeing the ASX200’s technical indicators on the day, week and month charts flag further downside is ahead. Australian dollar on notice with the Fed to hike this week The AUDUSD is under pressure after hitting a new low last week, 0.6727 US cents, which is about a two year bottom. Despite already losing 7% this year, the commodity currency, the AUDUSD is on notice again this week with the Fed expected to hike by 75bps (0.75%) at its Wednesday meet, which will take the Fed funds rate to 3-3.25%. There is also a slim chance (25% chance) of a full percentage hike of 100bps (1%) after the hotter-than-expected August inflation. Either way, the fundamentals support the US dollar gaining momentum against the Aussie, especially as the RBA is limited in its hiking power and likely to only hike by 0.25% next month. Also consider a jump in the US 10-year yield will likely further bolster the USD. A slightly softer USD heading into the FOMC week The USD is slightly softer going into the FOMC week amid some profit-taking, but it still remains the haven of choice with massive amounts of policy tightening packed into the week. AUDUSD pared some of the recent losses amid China reopening optimism and RBA’s Kearns saying that Aussie home buyers could benefit from higher rates. USDCAD rose to near 2-year highs on Friday at 1.3308, partly oil induced, but also due to increasingly sour sentiment and perceptions that BoC-Fed policy will likely diverge in wake of the latest disappointing Canadian employment data vs still-tight US labor markets. USDJPY will be a key focus with both FOMC and BOJ meetings scheduled in the week, and possibility of another round of strong verbal intervention from the authorities is seen. EURUSD is back above parity, as ECB members stay hawkish, but risks remain titled to the downside in the near term. Crude oil (CLU2 & LCOV2) With massive central bank action scheduled in the week, it can be safely assumed that demand concerns will likely remain center-stage. A spate of rate hikes is aggravating concerns of an economic slowdown, but easing of restrictions in China’s Chengdu today will ease some of the concerns. Dalian will also exit restrictions today. Nevertheless, more supply disruptions remain a risk. Germany seized the local unit of Russian oil major Rosneft PJSC, including three refineries. One of those is now preparing for short-term restrictions in crude supplied via the Druzhba pipeline. WTI futures were seen higher above $85/barrel in early Asian hours, while Brent futures were close to $92. Gold (XAUUSD) Gold saw some recovery after touching support of $1660/oz on Friday as interest rate hike bets picked up following the hotter-than-expected August CPI in the US last week. Further resilience in economic data out of the US has further kept interest rates expectations on an upswing, while rising geopolitical and economic risks are doing little to entice haven buying as the US dollar still remains the prime safe-haven choice. Gold was back close to $1680 this morning in Asia. The risk of the FOMC sending the US economy into a recession before getting inflation under control is rising and, once that occurs, the dollar is likely to turn sharply lower, thereby supporting fresh demand for investment metals. What to consider? University of Michigan survey remains optimisticThe preliminary September University of Michigan sentiment survey saw the headline rise to 59.5 from 58.5, just short of the expected 60, but nonetheless marking a fourth consecutive rise. Notably, the rise in forward expectations was starker than in current conditions, with the former also coming in above consensus expectations. Also, key were the inflation expectations, which echoed what was seen in the Fed surveys last week. The 1yr slowed to 4.6% from 4.8% and the 5yr expectations slowed to 2.8% from 2.9%.   China’s August activity data improved better-than-expected China’s activity data for August came in at stronger than expected growth rates.  Industrial production grew 4.2% Y/Y in August beating the consensus estimate of 3.8% Y/Y and improving from last month’s 3.8% Y/Y.  Higher output in automobile and power generation offset the impact from slower activities in other industries such as pharmaceuticals and computers.  Retail sales grew 5.4% Y/Y in August, well exceeding the 3.3% Y/Y median forecast from the Bloomberg survey and the 2.7% YoY in July. A favourable base effect and stronger auto sales during the month boosted retail sales and more than offset the drag from tightened pandemic control measures and a slow housing market.  Fixed asset investment grew 6.4% Y/Y in August, notably accelerating from the 3.6% Y/Y in July, led by 14.8% Y/Y growth in infrastructure and 10.7% Y/Y growth in manufacturing investments while investment in properties slowed further to a decline of -13.9% Y/Y in August from July’s -12.1%.  China’s property prices in lower-tier cities continued to decline in August According to data released by the National Bureau, the weighted average of new home prices in the top 70 cities in China fell 1.1% Y/Y (vs -0.6% Y/Y in July), driven largely by declines in property prices in lower-tier cities.  The easing of home purchase restrictions by local governments has so not been able to stop the decline in property prices in lower-tier cities.  Sequentially, new home prices in Tier-2, Tier-3, and Tier-4 cities dropped by about 5% M/M annualized while new home prices in Tier-1 cities rose by 1.6% M/M annualized.  An unexpected seventh bidder for Macao gambling licenses created uncertainties about incumbent operators In a tender for the six 10-year casino operating licenses, the six incumbent casino operators faced an unexpected rival from the Malaysian Genting Group which submitted a bid into the tender.  As the maximum number of licenses remains at six, the entry of Genting Group into the competition may mean one of the incumbent license holders might be ousted. Chengdu exits lockdown Chengdu, the largest city in Western China ends its nearly 3-week-long lockdown today and allows its 21 million population to leave their home and resume most aspects of normal life.  Residents are required to do PCR tests at least once a week.  Hong Kong considers ending hotel quarantine for inbound travelers The Hong Kong Government is reviewing and considering plans to end the hotel quarantine requirements for inbound travelers.  Currently, travelers to Hong Kong are required to be quarantined in a hotel for 3 nights and followed by four-day medical monitoring at home and then another 3 days of self-monitoring without mobility restriction.  The news may lift the share price of travel-related stocks, such as Cathay Pacific (00293:xhkg).   For a global look at markets – tune into our Podcast.   Source: https://www.home.saxo/content/articles/equities/apac-daily-digest-19-sept-2022-19092022
Gold Price Forecast: XAU/USD struggles near 29-month low amid Fed rate hike jitters

Gold Price Forecast: XAU/USD struggles near 29-month low amid Fed rate hike jitters

FXStreet News FXStreet News 16.09.2022 16:41
Gold remains under intense selling pressure for the fourth successive day on Friday. Aggressive Fed rate hike bets boost the USD and drive flows away from the metal. The risk-off impulse offers some support to the XAU/USD amid oversold conditions. Gold continues losing ground for the fourth successive day on Friday and drops to its lowest level since April 2020. The selling pressure now seems to have abated, at least for the time being, allowing the XAU/USD to hold above the $1,650 level. The US dollar catches fresh bids on the last day of the week amid expectations of a hefty rate hike by the Fed and turns out to be a key factor exerting downward pressure on the dollar-denominated gold. In fact, the markets started pricing in the possibility of a full 100 bps rate increase at the upcoming FOMC meeting on September 20-21 following the release of the stronger US CPI earlier this week. Moreover, market players also expect the US central bank to deliver another supersized 75 bps rate hike in November. This remains supportive of elevated US Treasury bond yields, which offer additional support to the greenback and further contribute to driving flows away from the non-yielding yellow metal. That said, the risk-off impulse helps limit losses for the safe-haven gold, at least for now. The market sentiment remains fragile amid worries that the rapid rise in borrowing costs will lead to a deeper global economic downturn. This, along with the economic headwinds stemming from fresh COVID-19 lockdowns in China and the protracted Russia-Ukraine war, has been fueling recession fears. This, in turn, tempers investors' appetite for riskier assets and triggers a sell-off in the equity markets. Apart from this, extremely oversold conditions on the 4-hour chart hold back bearish traders from placing fresh bets around gold. Investors might also prefer to move to the sidelines ahead of next week's key central bank event risks. The Fed is scheduled to announce its decision on Wednesday, which will be followed by the Bank of Japan, Swiss National Bank and the Bank of England meetings on Thursday. Nevertheless, the fundamental backdrop remains tilted firmly in favour of bearish traders and suggests that the path of least resistance for gold is to the downside. Hence, any meaningful recovery attempt might still be seen as a selling opportunity and runs the risk of fizzling out rather quickly.
Gold Has A Chance For Further Downside Movement - 30.12.2022

The Sale Of Gold From Last Week Is A Continuation Of The Trend

InstaForex Analysis InstaForex Analysis 19.09.2022 11:45
There is a lot of doom and gloom in the gold market as prices ended the previous week at their lowest level since April 2020. For many analysts, a break below $1,675 would spell the end of gold's three-year upward trend. Along with the fall in gold prices, Wall Street analysts and retail investors turned bearish, highlighting the downside risks in the near term. Last week's gold sell-off is a continuation of a trend that began in early March as markets react to the Federal Reserve's aggressive monetary policy moves to curb inflation, which remains stubbornly high. Markets are almost ready for a 75 basis point rate hike; however, surprisingly resilient inflation in August, with the US CPI rising to 8.3% from an expected 8.1% gain, has left markets priced in at a slim chance of a full 1% move. Rising hawkish expectations supported the US dollar near its 20-year high and lifted 10-year bond yields to 3.5%, the highest level since April 2011. Under these conditions, many analysts say that gold prices have suffered a lot of technical damage and it will be difficult for the precious metal to find any bullish momentum anytime soon. Last week, a total of 22 market specialists took part in a Wall Street survey. Fourteen analysts, or 63%, said they are bearish this week. At the same time, four analysts, or 18%, were optimistic or neutral. In the retail sector, 1,045 respondents took part in online surveys. A total of 395 voters, or 38%, called for gold to rise. Another 489, or 47%, predicted a fall in gold. The remaining 161 participants, or 15%, voted for a sideways trend. Bannockburn Global Forex Managing Director Mark Chandler said his next gold price target is between $1,615 and $1,650 and does not rule out a fall to $1,500 by next year. It is unlikely that the Fed will raise interest rates by 1% this week, the markets still expect further aggressive actions before the end of this year. Chandler noted that markets now see the final federal funds rate at 4.50%.     Relevance up to 09:00 2022-09-22 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. Read more: https://www.instaforex.eu/forex_analysis/322017
Saxo Bank Podcast: Natural Gas On Colder Weather, Wheat And Coffee Under Pressure, JPY Weaker And More

The Net Short In Natural Gas Rose 22%, The Commodity Sector In General Traded Higher

Saxo Bank Saxo Bank 19.09.2022 13:24
Summary:  Our weekly Commitment of Traders update highlights future positions and changes made by hedge funds and other speculators across commodities and forex during the week to Tuesday, September 13. A week that ended with the US CPI surprise which helped trigger renewed stock market weakness and bond yield strength while the commodity sector in general traded higher led by industrial linked metals and the grains sector. Saxo Bank publishes weekly Commitment of Traders reports (COT) covering leveraged fund positions in commodities, bonds and stock index futures. For IMM currency futures and the VIX, we use the broader measure called non-commercial. Link to latest report This summary highlights futures positions and changes made by hedge funds across commodities and forex during the week to Tuesday, September 13. A week that ended with the US CPI surprise which helped trigger renewed stock market weakness and bond yield strength. The dollar traded softer led by gains in the euro and Swiss Franc while the commodity sector generally traded higher led by the industrial metal and grain sectors. Commodities The Bloomberg Commodity index traded up 2.2% during the reporting week to last Tuesday, September 13 with gains seen across all sectors with the exception of softs. The metal sector was particularly strong, especially those with an industrial link such as silver, platinum and copper. The energy sector was mixed while a US government report supported strong gains across the grains sector led by soybeans.  Responding to these predominantly positive price performances, speculators increased bullish bets in 15 out of the 24 major commodity futures tracked in this by 70k lots to a 1.08 million. The bulk of the change being driven by short covering (49k lots) as opposed to fresh longs (21k lots), reflecting a market that remains concerned about the global economic outlook and its impact on demand for key commodities. Energy Crude oil’s current rangebound behavior was reflected in the limited changes seen in the overall net long. A week of small gains helped lift the net long in WTI and Brent crude by 13.4k lots to 341.5k lots and within the narrow 328k to 345k range seen during the past four weeks. The three fuel product contracts saw light net selling while the net short in natural gas rose 22% to 60k lots. Metals The sector saw an unusual strong amount of switching from gold to metals with an industrial link. The gold position flipped back to a net short of 11.3k lots, just a few hundred lots above a 40-month low, with additional selling likely to have been triggered by the technical break below $1680 that followed a couple of days later. The near 9% rally in silver from a two-year low helped trigger a 70% reduction in the net short to 17.1k while the platinum net short was cut in half to 9.3k lots while speculators turned the least negative on copper in three months after cutting their short by 61% to 4.4k lots.      Agriculture: The latest supply and demand (WASDE) update on September 12 together with concerns about the Ukraine grain deal helped support another week of buying across the grains sector with the combine long rising 10% to 492k lots. Especially the steep drop in soybeans ending stocks forecast by the US Department of Agriculture helped drive strong gains and net buying across the three soy contracts of beans, oil and meal. Corn was bought for a seventh week while wheat traders, despite a 5.3% rally maintained a net short in CBOT following a small reduction in the net short of less than 5%.  Softs were mixed with the sugar long getting a 75% boost to 30.5k while the cocoa net short jumped to a 2 ½-year high at 36.4k lots, this despite having trading sideways for the past three months, most of the time between $2300 and $2400 per tons. Global growth concerns helped trigger a second week of long liquidation in both coffee and cotton.  Forex Speculators increased bullish dollar bets for a fourth week with the aggressive adding of fresh shorts in the yen (-22.5k) and sterling (-17.7k) being partly offset by significant and continued short-covering in the euro (+24.5k). Overall the dollar long against nine IMM currency futures and the Dollar index reached a six-week high at $21.3 billion.  During the last two reporting weeks which included the euro’s unsuccessful attempt to break lower through €0.99, the net short has seen a 75% reduction to a near three-month low at 11.8k on a combination of fresh longs and short positions being reduced.  A widening gap between FOMC and Bank of Japan policies helped weaken the Japanese yen by 1%, the result being a 39% increase in the net yen short to 80.7k lots, a 14-week high.  What is the Commitments of Traders report? The COT reports are issued by the U.S. Commodity Futures Trading Commission (CFTC) and the ICE Exchange Europe for Brent crude oil and gas oil. They are released every Friday after the U.S. close with data from the week ending the previous Tuesday. They break down the open interest in futures markets into different groups of users depending on the asset class. Commodities: Producer/Merchant/Processor/User, Swap dealers, Managed Money and otherFinancials: Dealer/Intermediary; Asset Manager/Institutional; Leveraged Funds and otherForex: A broad breakdown between commercial and non-commercial (speculators) The reasons why we focus primarily on the behavior of the highlighted groups are: They are likely to have tight stops and no underlying exposure that is being hedged This makes them most reactive to changes in fundamental or technical price developments It provides views about major trends but also helps to decipher when a reversal is looming Source: https://www.home.saxo/content/articles/commodities/cot-speculators-rotate-from-gold-to-industrial-metals-19092022
Gold Price Forecast: XAU/USD remains depressed near $1,665 amid sustained USD strength

Gold Price Forecast: XAU/USD remains depressed near $1,665 amid sustained USD strength

FXStreet News FXStreet News 19.09.2022 16:15
Gold meets with a fresh supply and slides back closer to the YTD low set on Friday. Resurgent USD demand turns out to be a key factor exerting downward pressure. The risk-off impulse helps limit losses ahead of key central bank meetings this week. Gold maintains its offered tone through the early North American session and is currently placed near the $1,665 region, just above the daily low. A stronger US dollar is seen weighing on the dollar-denominated commodity, which remains well within the striking distance of its lowest level since April 2020 touched on Friday. Expectations that the Federal Reserve will stick to its aggressive rate-hike path to tame uncomfortably high inflation continue to underpin the greenback. A fall in the near-term inflation expectations for consumer prices in the US to a one-year low in September forced investors to scale back bets for a full 100 bps Fed rate hike move. The US central bank, however, is expected to deliver at least a 75 bps at the end of a two-day monetary policy meeting on Wednesday, which continues to underpin the greenback. This, in turn, remains supportive of elevated US Treasury bond yields. This, along with the prospects for a faster interest rate hike by other major central banks, further contributes to driving flows away from the non-yielding yellow metal. That said, the prevalent risk-off environment, as depicted by a fresh leg down in the equity markets, offers some support to traditional safe-haven assets. This turns out to be the only factor lending some support to gold and limiting the downside, at least for now. Investors also seem reluctant to place aggressive bets and prefer to move to the sidelines ahead of a flurry of central bank meetings this week. The Fed is scheduled to announce its decision on Wednesday, which will play a key role in influencing the near-term USD price dynamics. This will be followed by the Bank of Japan (BoJ), the Swiss National Bank (SNB) and the Bank of England (BoE) on Thursday. This, in turn, should assist investors to determine the next leg of a directional move for gold.
Saxo Bank Podcast: The Risk Of An Escalation In The US-China Confrontation, The Risk Of An Escalation In The US-China Confrontation And More

Tesla, Apple And Nike Rose, The United States Can Send Military Forces To Taiwan

Saxo Bank Saxo Bank 20.09.2022 08:53
Summary:  Ahead of the Fed’s interest rates decision with rates expected to rise by 0.75%, the price of the 10-year yield rose to 3.5% for the first time since 2011. Normally this puts equities in a precarious position, however, investors looked past this as a big red flag. The most buying overnight in US equities was in the Materials sector after commodity prices rallied, while sizeable moves were also in big tech names. Sentiment flowed to the ASX, with lithium and coal stocks being bid the most, after their commodity prices hit new record highs. And as such, the risk-on mood is set to flow through the Asia-Pacific today. Ahead, all eyes are on Australia's RBA meeting minutes and the reaction to Japan's CPI hitting a 31-year high. For the latest in markets and what to consider next, read today's APAC DD. What is happening in markets?   Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) Ahead of the Fed’s Wednesday interest rates decision with rates expected to rise by 0.75%, the price of the 10-year yield rose to 3.5% for the first time since 2011 and the 2-year note popped to a 15-year high of 3.96%. Normally this would put equities on the back foot and in a precarious position. As such this remains a big red flag for equities that are interest rate sensitive (tech, property, consumer spending). However, overnight equities looked past the noise and ended on a high note. But indeed, it was a volatile session. The S&P500 was down 1% earlier in the day, but marched higher in the final hour, supported by strong moves in big tech names. The S&P500 not only wiped out the day’s earlier loss but Friday’s fall too, closing up 0.7%. We saw 9 of the 11 sectors rise, led my Materials, Consumer Discretionary, and Industrials, while Heath Care was a laggard. Nasdaq 100 gained 0.8%. Big US stock movers Tesla (TSLA:xnas) gained about 2% on plans to increase the price of its supercharger stations in Europe. Apple (AAPL:xnas) rose 2.5% on news of Apple planning to fix the shaking iPhone 14  camera. Nike (NKE:xnys) gained 3% with investors betting their results later this week might not be as bad as feared. We think there could also be an upside scenario in 2023 for Nike if mainland China strengthens with its easing of lockdowns over the next 12 months, which would likely boost sportswear sales and margins. Afterhours Ford (F:xnys) warned that inflation had caused supplier costs to rise by $1 billion in the current quarter, joining a chorus of major companies experiencing the same macro challenges ripping through the economy. Ford shares fell 4.4% after hours, suggesting they will open lower when normal trading resumes. Moderna (MRNA:xnas), BioNTech(BNTX:xnas), and Novavax (NVAX:xnas) fell 7% to 8% after President Biden said in a CBS 60 Minutes interview that “the Covid pandemic is over”. U.S. treasuries (TLT:xnas, IEF:xnas, SHY:xnas) hit new highs The 10-year yield briefly exceeded 3.5% to 3.52% intraday for the first time since 2011, in an otherwise quiet session with the cash treasuries market being closed in London and Tokyo for holiday. The 10-year notes managed to pare some of their losses and finished the day at 3.49%, up 4bps from last Friday. The short end of the curve underperformed ahead of Wednesday’s FOMC, with 2-year yields climbing 7bps to a new closing high at 3.94%.  Australia’s ASX200 hits a two-day high, supported by Lithium and Coal stocks Today the Australian share market opened 1% higher in the first 10 minutes of trade, following Wall Street’s rally. Some of the biggest moves are in lithium and coal. Lithium companies are surging after the lithium price rallied to a brand-new record high, with the lithium carbonate price hitting a new record of $73,315 a ton in China (according to Asia Metal Inc). Core Lithium (CXO) is a stock to watch after it agreed with Tesla (TSLA) to extend the termination date for its binding offtake (sales) agreement to October 26. The extension allows the companies to negotiate a full form binding offtake agreement. Other lithium stocks to watch include Pilbara Minerals (PLS) after its shares rallied 3.6% in early trade, to a brand new record high of A$4.80. Elsewhere, Fortescue (FMG) rose about 1% on plans to decarbonize its business with a A$6.2 billion plan. Also, keep an eye on Oz Minerals (OZ) with the copper miner seeking a $10 billion potential sale to BHP (BHP). Speaking of BHP (BHP), its shares are up 1.8% after the NYSE listed BHP rallied overnight amid the risk-on mood. Risk-on mood setting up in Asian trade today Despite expectations of massive tightening moves being delivered globally this week and the surge in US 10-year yields above 3.5% overnight, the Asia session kicked off with risk-on sentiment. US equity futures extended gains and the USD was weaker, with the Japanese yen stronger at 143 despite CPI touching 3% in August. GBPUSD surged higher to 1.1460 while EURUSD extended gains to get close to 1.0050 levels amid ECB’s hawkishness and some relief on gas prices as well. Hong Kong’s Hang Seng (HSIU2) and China’s CSI300 (03188:xhkg) Yesterday the Hang Seng Index dropped 1%, dragged down by technology and China property stocks. Hang Seng Tech Index (HSTECH.I) declining 2.1 % with Alibaba (09988:xhkg) down 3.6%, Bilibili (09626:xhkg) down 5.6%.  In the China property space, Longfor (00960:xhkg) dropped 6.1% and Country Garden (02007:xhkg) slid 3.3%.  EV makers underperformed, with NIO (09866:xhkg), Li Auto (02015:xhkg), and Xpeng (09868:xhkg) plunging from 4% to 6%. U.S. President Joe Biden’s affirmative response to the question about sending U.S. forces to fend Taiwan off Chinese military actions added to investors’ concerns about an escalation in Sino-American tension.  Following the news that the Hong Kong Government is reviewing and considering plans to end the hotel quarantine requirements for inbound travelers, Hong Kong tourism and retail stocks rallied, Cathay Pacific Airways (00293:xhkg) up nearly 1%, travel agency EGL (06882:xhkg) soaring 11.5%, Chow Tai Fook Jewellery (01929:xhkg) rising 6.2%.  In mainland bourses, the approaching of the National Day golden week holiday and the Ministry of Culture and Tourism’s public consultation on promoting cross-border tourism pushed up tourism, catering, and beverage stocks. Coal mining stocks also gained. Solar power, semiconductors, and beauty care stocks dropped. CSI300 finished the day little changed.  Crude oil (CLU2 & LCOV2) Some support was seen to crude oil demand on Monday despite the risks of massive central bank tightening this week. A somewhat softer USD as well hoped of easing movement restrictions in China helped crude oil eke out a modest gain, despite the potential for increased supply. The US announced that it will offer an additional 10mbbl from its strategic reserve. Only last week it was reported that the Department of Energy was looking at plans to start replenishing the stockpile. UAE also said it was accelerating its plan to produce 5mb/d of crude oil by 2025. WTI futures rose back towards $86/barrel while Brent futures were above $92. What to consider? US NAHB in its ninth month of decline NAHB Housing Market Index reported its ninth consecutive decline to 46.0, beneath the prior 49.0 and expected 47.0. The weaker-than-expected data highlighted the pessimism hitting the US housing market due to the rising mortgage rates, and housing starts may be set to cool further in the coming months. However, no systemic risks are seen as the housing market remains a lagged indicator. Australia’s RBA expected to increase inflation expectations as coal pushes up and La Nina hits The RBA meeting minutes released today at 11.30am Sydney time, will be dissected for clues that the RBA will be increasing its inflationary expectations. Particularly as the coal price, where Australia gets the majority of its energy from, hit another record high (and coal is not in peak demand season yet). On top of that the RBA will probably allude to La Nina’s threat on Australia. We think the RBA may touch on wheat prices picking up again, given they are up 16% from August. Frost and rain in South America has impacted their wheat supply, dryness in the US will reduce their supply, plus heavy rains are headed for Australia for the third year in a row. So global wheat supply is expected to be short again and push up inflationary pressures. The AUDUSD might see a knee jerk reaction higher if the RBA alludes to this. However, we expect the AUDUSD to come under pressure, as the magnitude of the Fed’s hike supports the favoured currency, the USD moving up. Japan CPI hits a 31-year high Japan’s August CPI touched the dreaded 3% YoY mark from 2.6% previously, coming in at the strongest levels in over three decades and significantly above the Bank of Japan’s 2% target level. The core measure, which excludes fresh food and energy, also come in higher-than-expected at 1.6% YoY. With the wage growth remaining restrained, this may mean nothing for Bank of Japan which remains committed to maintaining its yield curve control policy. However, the markets may start to test the BoJ’s resolve once again, especially with US 10-year yields also touching 3.5% overnight while JGB yields remain capped at 0.25%. Hong Kong’s unemployment rate came in at 4.1% Hong Kong released the city’s unemployment rate which came in at 4,1% for the June to August period, 0.2 percentage points lower from last the May to July period. The underemployment rate fell to 2.0% from 2.2%.  U.S. President Joe Biden gave an affirmative response regarding sending forces to fend Taiwan off from mainland China When being asked in a CBS 60 Minutes interview whether the U.S. would send forces to defend Taiwan in case of military actions from mainland China, President Biden replied: “Yes, if in fact, there was an unprecedented attack.”  In answering a follow-up question about if the U.S, unlike in Ukraine, would send forces men and women to defend Taiwan, Biden said: “Yes.”   For a week-ahead look at markets – tune into our Saxo Spotlight. For a global look at markets – tune into our Podcast.   Source: https://www.home.saxo/content/articles/equities/apac-daily-digest-20-sept-2022-20092022
Indonesia's Inflation Slips, Central Bank Maintains Rates Amidst Stability

The Major Currency Pairs On The Forex Market And Their Move Ahead Of Important Decisions

TeleTrade Comments TeleTrade Comments 20.09.2022 10:35
Here is what you need to know on Tuesday, September 20: Major currency pair trade in familiar ranges on Tuesday as investors move to the sidelines ahead of key central bank policy decisions. The US Dollar Index (DXY), which closed virtually unchanged on Monday, moves sideways slightly above 109.50 and the market mood improves modestly with US stock index futures rising between 0.2% and 0.3%. Later in the day, Building Permits and Housing Starts data for August will be featured in the US economic docket. Consumer Price Index (CPI) figures from Canada will also be watched closely by market participants. Wall Street Journal author Nick Timiraos, who correctly leaked the 75 basis points (bps) rate hike in July, published an article late Monday and refrained from suggesting that the Fed could raise its policy rate by 100 bps on Wednesday. The greenback lost some interest after this development and the DXY erased its daily gains. The benchmark 10-year US Treasury bond yield stays relatively quiet near 3.5% on Tuesday. Federal Reserve Preview: Forecasting 5% interest rates? Dollar to move on dot-plot, Powell's pledges. Earlier in the day, Sweden's central bank, Riksbank, announced that it raised its policy rate by 100 bps to 1.75%, compared to Reuters' estimate for a rate increase of 75 bps. With the initial reaction, EUR/SEK fell to a fresh daily low of 10.7305 but managed to recover to the 10.8000 area. During the Asian trading hours, the Reserve Bank of Australia's (RBA) September monetary policy meeting minutes showed that policymakers saw a case for a slower pace of rate increases as becoming stronger. AUD/USD's reaction to the RBA's publication was largely muted and the pair was last seen trading flat on the day at around 0.6730. Annual CPI in Canada is expected to decline to 7.4% in August from 7.6% in July. Ahead of this data, the USD/CAD pair trades in a tight range near the mid-1.3200s. EUR/USD managed to stage a rebound in the second half of the day on Monday and closed in positive territory above parity. The pair was last seen posting small daily gains near 1.0030. GBP/USD clings to modest daily gains at around 1.1450 early Tuesday. “There aren’t currently any negotiations taking place with the US and I don’t have any expectation that those are going to start in the short to medium term," British Prime Minister Liz Truss said regarding a potential trade deal with the US but these comments were largely ignored by market participants. The data from Japan revealed on Tuesday that the National CPI climbed to 3% in August from 2.6% in July. Although this print came in stronger than the market expectation of 2.6%, USD/JPY managed to hold its ground and was last seen rising 0.2% on the day at 143.50. Gold is having a tough time attracting buyers and trading in negative territory slightly above $1,670. The resilience of the 10-year US T-bond yield makes it difficult for XAU/USD to gather recovery momentum. Bitcoin shook off the bearish pressure late Monday but it's yet to reclaim $20,000. Ethereum gained nearly 3% on Monday but failed to preserve its bullish momentum early Tuesday. At the time of press, ETH/USD was down 1% on the day at $1,360.
A Bright Spot Amidst Economic Challenges

The Situation Of Stock Exchange Are Related To The Cycle Of Rate Hikes

InstaForex Analysis InstaForex Analysis 20.09.2022 11:59
Market volatility remains high ahead of tomorrow's Fed meeting, which may result in another aggressive increase in interest rates. Interestingly, earlier opinions are different from the current ones as many expected a 0.75% rate hike following the July meeting. Now, there is a chance of an even greater increase, by 1.00%, which made investors realize that the central bank will not go along with the market, but will implement anti-inflation measures as long as the state of the economy allows it. However, a continued sharp increase in rates will quickly put pressure on price growth, which, according to the Fed, should reset the economy after its noticeable, but at the same time rapid slowdown. Nevertheless, investors believe that after another strong rise in rates, Fed Chairman Jerome Powell will make it clear whether or not the cycle of rate hikes is ending. If he says that it will begin to ease, stocks will rally, while dollar will weaken. If he says that it will continue, the fall of stock indices will resume, and dollar will again be in demand. In terms of the forex market, activity will remain low for now, and currency pairs where dollar is present will move sideways. Forecasts for today: XAU/USD Gold is consolidating below 1672.25. If the scenario described above happens, the price may rise to 1691.50. WTI Oil is trading below 86.15. The weakening of dollar could lead to a price increase to 90.00.   Relevance up to 07:00 2022-09-22 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. Read more: https://www.instaforex.eu/forex_analysis/322100
Gold Stocks Have Performed Very Well Under Pressure

The Bright Metal Ahead Of The Fed And BOE Rate Hike Decisions

TeleTrade Comments TeleTrade Comments 20.09.2022 13:30
Gold price is back in the red zone, as US Treasury yields see a renewed upside. Heft Fed rate hike expectations bolster the yields and the US dollar. XAU/USD bears target $1,754 and $1,751 as the downside resumes. Gold price has stalled its two-day recovery mode from 29-month lows but remains within a familiar range between $1,680 and $1,650. Investors refrain from placing any directional bets on the bright metal ahead of the Fed and BOE rate hike decisions, which could have a significant impact on risk sentiment and the US dollar valuations. The Fed is widely expected to hike rates by 75 bps this week, although a slim chance of 100 bps rise still remains on the cards. Aggressive global tightening bets weigh negatively on the non-interest-bearing gold at a time when the US Treasury yields are surging to multi-year highs across the time curve. Also read: Gold Price Forecast: XAU/USD bulls to remain cautious below $1,700 amid pre-Fed anxiety Gold Price: Key levels to watch The Technical Confluence Detector shows that the gold price has breached the Fibonacci 61.8% one-day support at $1,667. Bears are now geared up to test the Bollinger Band one-day Lower at $1,664. The previous day’s low of $1,660 will be the next downside target. Further south, the previous week’s low at $1,654 and the pivot point one-day S2 at $1,651 could come to the rescue of XAU buyers should the selling momentum pick up steam. On the flip side, the $1,672 hurdle could into play once again. That level is the confluence of the Fibonacci 38.2% one-day and the Fibonacci 23.6% one-week. The previous year’s low of $1,677 will offer stiff resistance on the road to recovery, above which bulls will challenge the previous day’s high of $1,680. Here is how it looks on the tool About Technical Confluences Detector The TCD (Technical Confluences Detector) is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc.  If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.
Traders Took A Bearish Stance On Gold

Traders Took A Bearish Stance On Gold

InstaForex Analysis InstaForex Analysis 21.09.2022 08:21
Gold futures tried to stabilize during the Asian session on Tuesday after a strong fall the day before, but under the onslaught of restrained trading, they are still declining in value. On the COMEX, a division of the New York Mercantile Exchange, precious metal futures for December delivery stood at $1,682, up 0.25% as of 8:50 am London time. However, trying with all its might to stay above a two-year low, gold quotes still fall to $1,667 by 13:50. However, the precious metal faltered on Monday amid the strongest pressure due to expectations of the Federal Reserve meeting and so it plunged to the lowest levels since the spring of 2020. The Fed's decision (current and future) can determine the fate of the near future. The market expects that the US central bank will raise the rate by at least 0.75 points. The probability of an increase of 1% is not excluded, since the consumer price index (CPI) published last week showed that inflation in the United States remains stubbornly high. Such a large increase in rates is likely to raise pressure on the energy, metal mining and agricultural industries. In a word, for the entire economy of the country. It is obvious that such drastic measures of the US central bank (as well as other central banks) will not only reduce demand, but also strengthen the dollar's growth. And a strong dollar, as you know, hits the value of all commodities deafeningly. So far, the USD index, reflecting the ratio of the US dollar to a basket of six major currencies, has grown by 0.40% to 110.18 by the time of preparation of the material. Meanwhile, funds are already fleeing from gold. Hedge funds and investment managers have taken a bearish stance on the precious metal. In the week before September 13, the net position of large speculators (like hedge funds) in futures and options for gold changed from long to short. This became known on Friday, September 16, thanks to the statements of the American Commodity Futures Trading Commission (CFTC). The volume of a net short speculative position in futures and options for gold amounted to 10,132 contracts (the highest for the last seven reporting periods), whereas a week earlier the volume of a net long position was 1,217 contracts. The volume of a long speculative position in futures and options decreased to 90,604 contracts, that is, to the lowest level in four years. Some investors are confident that the price of gold will fall lower and lower and this will continue until the Fed's statements about inflation become moderate. Other experts hold the position that gold will receive price support from increased geopolitical and economic risks. Relevance up to 15:00 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. Read more: https://www.instaforex.eu/forex_analysis/322190
Acquisition Of Aveva By Schneider Electric, Wheat Prices And More

Acquisition Of Aveva By Schneider Electric, Wheat Prices And More

Saxo Bank Saxo Bank 21.09.2022 10:36
Summary:  Equity markets traded sideways ahead of today’s important FOMC meeting as the Fed is set to bring at least another 75 basis points of tightening and expectations for further tightening are at the highs for the cycle. At the longer end of the yield curve, US yields have risen to new eleven-year highs, helping the US dollar to new highs for the cycle in places, including against the Chinese yuan. The Bank of Japan meets tonight in Asia and has shown no signs of backing down from its cap on bond yields, creating enormous attention as yields have risen again elsewhere. What is our trading focus? Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) US equities came under pressure yesterday as US yields advanced with the 10-year yield reaching as much as 3.6%. The market is split on tonight’s FOMC decision but consensus among economists is still a 75 basis point rake hike. We argued yesterday that if the Fed wants to tighten financial conditions a lot they need a surprise which argues for a 100 basis point hike. In any case, the guidance in the dot-plot and the subsequent press conference will be key for equity sentiment in the near-term. Yesterday’s low in S&P 500 futures at 3,643 is the key support level to watch on the downside and 3,800 after that. Hong Kong’s Hang Seng (HSIU2) and China’s CSI300 (03188:xhkg) Hang Seng Index gave back all its gains yesterday and more, falling over 1% ahead the U.S. FOMC meeting. Mega-cap China interest stocks declined from 1% to 3%, dragging the Hang Seng Tech Index down by over 2%.  Energy stocks outperformed coal mining names up from 1% to 2%.  COSCO Shipping Energy Transportation (01138:xhkg) soared more than 8%. Bloomberg reported that Chinese refiners are applying for quotas from the Chinese government to export as much as 16.5 million tons of fuel oil, such as gasoline and diesel.  CSI 300 fell nearly 1% and making a new low last since May this year. USD traders mull FOMC meeting today A minority of observers are looking for another 75-basis point move from the Fed, as discussed below, with forward guidance also playing a roll, although the market continues to price the end-2023 policy rate at below even the end-2022 rate, with the peak rate somewhere in between, despite FEd pushback. The USD has traded to new highs in places, like against all 5 of the smallest G10 currencies and is near the cycle high versus sterling, while EURUSD and USDJPY still trade slightly away from cycle extremes. The Fed will want to maintain a hawkish tone here, but as US 2-year yields have risen sharply to nearly 4%, the bar is somewhat high for a hawkish surprise. Watching the reactivity in treasury yields and risk sentiment for the impact on the US dollar – particularly how USDJPY might treat a fresh strong surge in longer US yields after the 10-year broke above the former cycle high since 2010 of 3.50% yesterday. USDJPY USDJPY could be set for considerable volatility over the next 24 hours as the Bank of Japan meets tonight in Asia’s Thursday session. The pressure for the Bank of Japan to adjust its yield-curve-control strategy has built further on the surge to new cycle highs in longer US yields yesterday above the 3.50% level. The Bank of Japan and Ministry of finance have recently pushed back rather hard on the latest blast of JPY weakness, but will likely be challenged on where and when they intend to intervene against JPY weakness if the BoJ overnight refuses to adjust its policy and if the Fed surprises hawkish at tonight’s FOMC meeting and the entire US yield curve lifts. The 145.00 area is the cycle high, with 150.00 the next obvious psychological level. Gold (XAUUSD) Gold trades near a two-year low but within a relatively narrow 20-dollar range ahead of today’s FOMC meeting (see below). Weeks of selling have seen speculators accumulate a net short position in COMEX futures, a relatively rare occurrence, and one that could set the stage for a surprise upside move, should the dollar and yield retrace some of their recent strong gains. Resistance however remains firm at $1680 while below $1654, last week's low, the market may target the 50% retracement of the 2018 to 2020 rally at $1618. Crude oil (CLV2 & LCOX2) Crude oil remains rangebound with a slight negative tilt ahead of today’s FOMC rate hike given its impact on the dollar and growth expectations. The Fed decision will be followed by other central banks from Europe to Asia which are also expected to announce growth reducing rate hikes. The long-term outlook remains price supportive with US production struggling to find a higher gear and Saudi Aramco saying lack of investments could see spare capacity being wiped out. Also focus on Russia from where seaborne exports is lower this month and where Putin is looking into his toolbox for ideas to reverse his disastrous war against Ukraine. Ahead of today’s EIA stock report the API reported builds in crude oil as well as fuel products. Wheat sees largest gain since March on Russia tensions Wheat futures in Chicago (+7.6%) and Paris (+4.1%) jumped on Tuesday after Russia said it intended to hold votes on annexing the three regions of Ukraine still under its control (see below). Such a move raises the risk of a full Russian mobilization and would increase tensions with Europe and the US while casting more doubts over grain supplies from the Black Sea area, especially the UN sponsored export corridor from Ukraine which recently has helped ease supply worries for wheat and sunflower oils. Also focus on today’s FOMC rate hike and its impact on the dollar. December wheat (ZWZ2) at $8.88 trades near the highest level since July but may face resistance at $9.14/bu, the 200-day moving average. US Treasuries (TLT, IEF) US treasury yields spilled over to new cycle highs yesterday ahead of tonight’s FOMC meeting as the market has sensed a hawkish determination from the Fed to forge ahead with rate hike and provide no sense that it set to pivot to a more neutral stance, although that would have to come at some point. The 10-year benchmark rose to a new cycle high yesterday above 3.50%, posting the highest yield since 2011. What is going on? Shocking August German PPI According to the German statistics office Destatis, the PPI rose by 7.9 % month-on-month in August. This is much higher than the consensus (2.4 %). This shows that forecasting in the current macroeconomic environment is more challenging than ever. On a year-over-year basis, the increase is at 45.8 %. This is an historical record. The continued jump is explained by higher energy prices (+139% year-over-year). But not only. Actually, inflation is broad-based. Prices for intermediate goods, for capital goods and for non-durable consumer goods are much higher too. This will probably get worse in the short-term. In the eurozone, it is unlikely the peak in inflation has been reached (contrary to the situation in the United States). Russia-Ukraine tensions heat up Heightened geopolitical tensions regarding Russia and Ukraine where the “separatists” are to hold a referendum in Donetsk, Luhansk, Kherson and Zaporizhya on September 23rd-27th, although Ukraine and its allies have denounced the referendums as illegal, and few countries are likely to recognize the results. An update from Putin on the matter is being awaited, where there have been some suggestions that he is considering introducing martial law and full mobilisation of the Russian army - the speech has now reportedly been delayed until 06:00BST/01:00EDT Wednesday. The move threatens to escalate the conflict even further, potentially giving Putin the formal legal basis to use nuclear weapons to defend what Moscow would consider Russian territory. Riksbank’s 100bps rate hike sets the stage for FOMC The Swedish Riksbank surprised yesterday with a 100-basis point hike to take the rate to 1.75%. This, in addition to guidance that the Riksbank would look to continue hiking rates, took Swedish yields higher, but didn’t do much for the currency, which fell to new cycle lows versus the EUR and USD after a kneejerk jump. The decision to hike by 1% was unanimous, prompted by the highest level of CPIF inflation since 1991 and the negative implication it could have on the upcoming wage negotiation which will lock in pay growth for the next three years. However, with global tightening wave turning more hawkish that expectations after ECB’s 75bps rate hike and Riksbank’s 100bps, the stage is being set for the FOMC to deliver above expectations as well. Schneider Electric agrees to acquire Aveva for £9.4bn The French industrial giant is announcing this morning that it has agreed to acquire UK-based engineering and software group Aveva for £31 per share valuing the company at £9.4bn. Schneider Electric already owns 60% of Aveva and a full consolidation will bolster Schneider Electric’s ambitions in software within the engineering industry. Rio Tinto joins BHP in saying Copper’s near-term outlook is challenged Rio Tinto’s CEO has joined a suite of companies, including BHP, saying copper’s short-term outlook faces pressure. From supply-chain issues to 30-year high inflation and restricted demand from China, the metal is seeing less demand, and supply is outpacing supply. However, that is not expected to be the case in the longer term with Goldman Sachs predicting copper demand will exceed supply by 2025 and will push prices to twice their current levels. Copper is used in everything from buildings to automobiles, to wiring in homes and mobile phones. Germany nationalises utility company Uniper The German government is injecting €8bn into Uniper to avoid a collapse of the German utility taking full control of Finland-based utility Forum’s shares in Uniper. What are we watching next? Can the Fed surprise hawkish at FOMC or are we nearing peak tightening expectations? The Powell Fed has kept a hawkish tone in recent communications, clearly indicating a desire to forge ahead with rate hikes. After the strong August US CPI print, a minority of observers are even looking for a 100-bp move from the Fed today, though we are more likely to get 75 basis points. This is a quarterly meeting that will bring the latest Fed forecasts for the economy and for the policy rate, a chance for the Fed to send a further message on where it sees its policy evolving for the remainder of this year and next. The forecast in the “dot plot” of Fed policy rate forecasts for the end of 2022 will receive close attention. Currently the market is looking for a policy rate of about 4.2% through the December meeting, which would mean a 75-bp hike today, another in November, followed by a 50-bp hike in December. The Fed raising the 2023 forecast to a median of 5% might make an impression as well, although the market has persistently priced the Fed to begin easing yields at some point next year, figuring that the economy will be in recession at some point next year. This meeting also brings the first batch of 2025 forecasts for the economy and Fed policy, and another way that the Fed could guide hawkish would be in raising PCE core inflation forecasts for next year and/or 2024 (last two forecasts have kept the last of these at 2.3% YoY) or surprising with its 2025 forecast. Earnings calendar this week This week our earnings focus is on Lennar today as US homebuilders are facing multiple headwinds from still elevated materials prices and rapidly rising interest rates impacting forward demand. Later during this week, we will watch Carnival earnings as forward outlook on cruise demand is a good indicator of the impact on consumption from tighter financial conditions. Today: Lennar, Trip.com, General Mills Thursday: Costco Wholesale, Accenture, FactSet Research Systems, Darden Restaurants Friday: Carnival Economic calendar highlights for today (times GMT) 1400 – US Aug. Existing Home Sales 1430 – EIA’s Weekly Crude and Fuel Stock Report 1800 – US FOMC Rate Announcement / Policy Statement 1830 – US Fed Chair Powell Press Conference 2100 – New Zealand Q3 Westpac Consumer Confidence 2130 – Brazil Selic Rate announcement 2245 – New Zealand Aug. Trade Balance 2300 – New Zealand RBNZ Deputy Governor Hawkesby to speak Bank of Japan meeting Follow SaxoStrats on the daily Saxo Markets Call on your favorite podcast app: Apple  Spotify PodBean Sticher Source: https://www.home.saxo/content/articles/macro/market-quick-take-sep-21-2022-21092022
Gold Is No Longer A Tool Against Inflation

Gold Is No Longer A Tool Against Inflation

InstaForex Analysis InstaForex Analysis 21.09.2022 12:37
Gold has always been regarded as a tool against inflation. However, its continuous fall since the beginning of the year amid high consumer prices suggested the opposite. Quotes are clearly sensitive to the dynamics of real US Treasury yields, as well as to the fact that rates on 10-year inflation-protected debt have risen above 1%. Additional evidence of the bearish trend is the movement of gold futures, which, although separated from physical gold, is responsive to the dynamics of the global economy and monetary policy. Strong demand in China, accompanied by a 12-week ETF outflow, also contributed to the decline of ETFs to their lowest levels since January. Capital flows to gold ETFs The most serious headwind for gold is the increase of dollar recently. Since the metal is denominated in US currency (XAU/USD), the rally is negative for its rate. Dollar has been rising because of the Treasury yields, which reached their best dynamics lately. This signals a likely increase in federal funds rate, and this is not a favorable environment for the metal. But considering that investors are already expecting a 75 basis point rate hike this September, there is a chance that the volume of short positions will be little, which will result in a rebound in gold. After all, there are two inside bars in the daily chart, which allows pending orders to buy at $1680 and sell near $1659. The second option is preferable as the target price level is still $1,600. Another target is the 161.8% retracement level. Relevance up to 08:00 2022-09-23 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. Read more: https://www.instaforex.eu/forex_analysis/322230
EU Gloomy Picture Pointing To A Gradual Approach To Recession

How Much Have European Governments Invested In Supporting Businesses And Consumers, The Demand For Copper And More

Saxo Bank Saxo Bank 22.09.2022 08:47
Summary:  The Fed’s 75bps rate hike came with a strong message emerging from the Dot Plot that rate hikes will continue despite risks of slower economic growth and higher unemployment rate. Clear focus remains on tightening the financial conditions, which was reflected in equities and other risk assets. Russia’s partial mobilization has raised geopolitical concerns as well, adding a risk-off bid to the US dollar. EURUSD appears to be heading for 0.98 even as pressure on the Japanese yen remains capped due to lower long-end US yields. Hard to expect Bank of Japan pivot today, but FX comments could be the highlight before focus turns to another jumbo hike from the Bank of England later. What is happening in markets?   Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) are looking bearish again The Fed managed to deliver a hawkish surprise without going for a 100bps rate hike, as the message was clear – rate hikes will continue even if economic pain worsens. While the initial reaction from equities was a negative one, some ground was regained with Powell’s presser, once again, lacking further hawkish surprises. However, Powell said in his concluding Q&A response that rates will likely get to levels seen in the Dot Plot, reigniting their signaling power after initially warnings against taking the Dot Plot as Fed’s plan. Whether that was the catalyst or not is hard to tell, but stocks went on to sustain new lows into the close. What’s for sure is the Dot Plot still gives a clearer message on the Fed’s path than Powell. S&P500 fell below 3800 to close down 1.7% while NASDAQ 100 was down 1.8%. General Mills (GIS:xnys) reported better-than-expected earnings and raised its outlook, which helped it to defy the broader market decline, while also lifting other food stocks such as B&G Foods (BGS:xnys) and Kellogg (K:xnys), and supporting the overall consumer staples sector. Another chemical manufacturer joined the chorus of negative pre-announcements. Chemours (CC:xnys) revised down its 2022 EBITDA by 7% from its previous guidance, citing weaker demand from Europe and Asia. Lennar (LEN:xnys), up by 0.9%, reported adj. EPS of USD5.18, beating consensus estimate of USD4.87, primarily due to a lower tax rate and an improvement on margins. Unit orders, however, fell 12% Y/Y, missing expectations of modest growth, signing moderating housing demand, especially in Texas and the West. U.S. treasuries (TLT:xnas, IEF:xnas, SHY:xnas) After the Fed delivering a 75bps hike as expected but signaling a hawkish higher terminal rate of 4.6% in 2023 as well as projecting lower real GDP growth rates (0.2% in 2022, 1.2% in 2023, 1.7% in 2024) and higher unemployment rates (4.4% in 2023, 4.4% in 2024, 4.3% in 2025) than the long-run equilibrium levels (1.8% real GDP growth, 4% unemployment rate) anticipated by the Fed, the treasuries yield curve went further inverted, with 2-10 year spread closing at -54bps. Traders sold the 2-year notes, bring yields up by 7bps to 4.05% in response to clear “no pivot” message from the Fed. On the other hand, long-end yields declined on the Fed’s acceptance of slower growth and higher unemployment for longer as a price to put inflation under control. The 10-year yields fell 3bps to 3.53% and 30-year yields plunged 7bps to 3.50%. The U.S. yield curve’s trend to go deeper into inversion continues. The 3-month bills versus 10-year notes yield spread may go negative (inverted) as the 3-month rates keep rising on Fed tightening and the 10-year yield being anchored by improved inflation expectations. Hong Kong’s Hang Seng (HSIU2) and China’s CSI300 (03188:xhkg) Stocks in Hong Kong, Shanghai, and Shenzhen bourses continued to decline, with Hang Seng Index and CSI300 Index falling 1.8% and 0.7% respectively, and both making new lows.  Hang Seng Tech Index (HSTECH.I) lost 3%, dragged down by China Internet, tech hardware, and EV names.  Sunny Optical (02382:xhkg) tumbled 10.5% as analysts had concerns over a saturated smartphone market and increased competition in smartphone cameras.  Alibaba (09988:xhkg) and Tencent (00700:xhkg) declined 3.7% and 2.5% respectively.  While real estate stocks gained on the mainland bourses after some Chinese cities relaxed second-property buying restrictions, shares of Chinese developers traded in Hong Kong fell, with CIFI 00884:xhkg) tumbling 11.3%, Country Garden (02007:xhkg) sliding 4%.  The solar power space plunged from 5% to 8%.  Following the news of a partial mobilization in Russia to bolster armed forces, higher crude oil prices boosted the shares prices of energy companies, CNOOC (00883:xhkg) up by 2.2%, PetroChina (00857:xhkg) up by 1.2%.  %.  A tanker shipping company, COSCO Shipping Energy Transportation (01138:xhkg) soared more than 8%.  Bloomberg reported that Chinese refiners are applying for quotas from the Chinese government to export as much as 16.5 million tons of fuel oil, such as gasoline and diesel. A dry bulk shipping company, Pacific Basin (02343:xhkg) surged 7.9% after the Baltic Dry Index jumped over 11%.  The tanker shipping space and natural gas space gained and outperformed in A shares.  Asian markets to face risk-off after a hawkish Fed message Australia holds a National Day of Mourning to honour the Queen. Trading of ASX instruments will not occur as the ASX is closed. Trading resumes Friday September 23. Japan’s Nikkei 225 opened down 1.4%, eying the Bank of Japan meeting later today. Taiwan, Indonesia and the Philippines are also likely to raise rates today. AUDNZD and the NZ trade balance AUDNZD remained supported above 1.1320 and upside tests were seen with the relative current account balances in play. NZ reported August trade data this morning and imports accelerated while exports have declined. The deficit in NZ Trade Balance data has widened further to -$12.28B vs. the prior release of -$11.97B on an annual basis. Also, the monthly deficit has widened to -$2,447M against the former figure of -$1,406M. This is a contrast to Australia which is reporting fresh highs in trade balance due to its bulk of commodity exports. The next focus for AUDNZD is perhaps 1.1516, the high of 2015. EURUSD heading for 0.98 EURUSD broke lower to fresh 20-year lows of 0.9814 amid Putin’s partial mobilization and the strength of the dollar from the hawkish Fed signals. While the ECB stays hawkish as well, the relative hawkishness still tilts in favour of the Fed due to the harsh winter coming up especially for Europe as Russia has cut gas supplies. Stronger case of a recession also continues to bode for more downside in EURUSD in the near-term. Crude oil (CLU2 & LCOV2) Crude oil prices bumped up higher on Wednesday after Putin’s speech but gains faded later in the day amid a hawkish Fed boosting the US dollar and strengthening the case for a deeper economic slowdown. The EIA data saw a 1.1mn barrel build in crude stocks, similar to the private data, although given the 6.9mn barrel SPR release, that was a net 5.8mn draw. WTI futures slid below $83/barrel although some recovery was seen in early Asian hours, and Brent futures attempted to head back over the $90/barrel mark.   What to consider? Powell beats the hawkish drum louder The Federal Reserve delivered its third consecutive 75bps rate hike and showed no sign of easing its push into restrictive territory as it battles to cool inflation. This comes despite Fed’s latest projections showing slower growth and a rise in unemployment next year. The FOMC raised the benchmark rate to 3-3.25% and projected the terminal rate at 4.6% in 2023, suggesting Fed will remain committed to bring inflation down even if that means significant economic pain. Fed members estimate the economy will grow 0.2% in 2022, down sharply from a prior forecast of 1.7%. Growth forecasts were also revised lower for 2023 and 2024 to 1.2% and 1.7% from 1.7% and 1.9%, respectively. The central bank now sees the unemployment rate at 3.8% at year-end, up slightly from a prior forecast of 3.7%. But labor supply and demand may likely be restored in subsequent years, with unemployment expected to reach 4.4% in 2023 and remain unchanged the following year, according to the Fed's projections. That is above the prior June forecast of 3.9% and 4.1% unemployment in 2023 and 2024, respectively. Russia’s partial mobilization spurs risk off Russian President Putin, in his televised speech to the nation Wednesday morning, announced partial mobilization, calling up 300k reserves, whilst threatening the west with “All means of destruction, including nuclear ones”. Referendums in Donetsk, Luhansk, Kherson and Zaporozhye (15% of Ukraine territory) are scheduled September 23-27, and any fighting in these regions will eb considered as attacks on “Russian territory” and thus pave the way for a potential military escalation, justifying the use of mass destruction weapons. Looking out for some FX comments at the Bank of Japan meeting While it is still hard to expect a pivot from the Bank of Japan this week, given that Governor Kuroda remains focused on achieving wage inflation, the meeting will still likely have key market implications. There will likely be increased voicing of concerns by the authorities on yen weakness, and there is also some chatter around the Bank of Japan bolstering its lending programs to support the private sector as high inflation curbs spending. Also watch for intervention risks as highlighted here. Bank of England may tilt to hawkish despite recession concerns The BoE meets on Thursday after last week’s meeting was delayed by a week for Queen Elizabeth II’s funeral. Policymakers are expected to hike rates by another 50bps, which would bring the Bank Rate to 2.25%, although a 75bps hike is still on the table. Beyond September, analysts forecast a 50bps increase in November and 25bps in December, taking the Bank Rate to 3%, where it is expected to stay until October 2023. Also worth highlighting is the “fiscal event” delivered by new Chancellor of the Exchequer Kwasi Kwarteng on Friday. This will be his first statement on how he plans to deliver new Prime Minister Liz Truss' pledge to make the U.K. a low tax economy, which risks stoking inflation in the medium-term. However, short-term plans on energy support package suggests lower inflation to end this year, but that wouldn’t be enough for the BoE to go easy on its inflation fight. Rio Tinto joins BHP in saying Copper’s near-term outlook is challenged Rio Tinto’s CEO has joined a suite of companies, including BHP, saying copper’s short-term outlook faces pressure. From supply-chain issues to 30-year high inflation and restricted demand from China, the metal is seeing less demand, and supply is outpacing supply. However, that is not expected to be the case over the longer term. Goldman Sachs predicts copper demand will be greater than supply by 2025, and will push prices to twice their current levels. Copper is used in everything from buildings to automobiles, to wiring in homes and mobile phones. Chinese media called for Loan Prime Rate Cuts Although the Loan Prime Rates (“LPR”) were fixed at the same level earlier this week, leading Chinese financial newspapers, including the China Securities Journal and Shanghai Securities Journal are calling for LPR cuts in the coming months to boost the economy.  Temporary measures to shield European consumers from high energy prices are becoming permanent According to the calculations of the Brussels-based think tank Bruegel, European governments have allocated about €500bn to protect consumers since September 2021 (see the report). The exact figure is higher because Bruegel has not yet counted the most recent packages from the United Kingdom, Germany and Denmark. We would not be surprised if the total amount will reach at some point next year €1tr. But there is more. European governments have also allocated more to support utilities facing risk of liquidity crisis (several instruments are used including loans, bailouts and fully fledged nationalisation). This represents a total amount of €450bn (this is actually above half of the NexGenerationEU funding which was agreed after the Covid crisis). Dreadful growth forecasts for the eurozone We all know forecasting is a tricky task, even more so in the current macroeconomic environment (the impact of the energy crisis is tough to assess). Yesterday, Deutsche Bank revised downward its 2023 growth forecast for the eurozone, from minus 0.3 % to minus 2.2 %. This is a massive drop in GDP if it happens. It would actually be the third lowest euro area GDP growth since WW2 (behind 2009 and 2020, of course). This shows how expectations are low for the eurozone next year.   For a week-ahead look at markets – tune into our Saxo Spotlight. For a global look at markets – tune into our Podcast.   Source: https://www.home.saxo/content/articles/equities/apac-daily-digest-sept-22-2022-22092022
A Bright Spot Amidst Economic Challenges

Forecasts Expect Another Decline In Growth In The Eurozone, A Yen's Volatility And More

Saxo Bank Saxo Bank 22.09.2022 08:56
Summary:  The FOMC meeting triggered a fresh downdraft in market sentiment late yesterday, as they made it explicitly clear in its economic and policy forecasts, that it will continue to hike the policy rate even if the economy begins slowing and labor market conditions materially worsen. The US dollar spiked higher in response across the board, although new highs in USDJPY were tamed by fresh intervention threats from officials in Japan overnight. The US 2-year yield rose above the 4-handle for the first time since 2007.   What is our trading focus? Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) US equities were not double thinking the signal from the Fed as Powell said the current level was at the absolute lower level of what is seen as necessary to get inflation under control. The US 2-year yield is trading 4.12% this morning adding renewed pressure on S&P 500 futures trading around the 3,788 level after touching the big 3,800 level in yesterday’s session. A soft landing scenario is increasingly getting difficult in the Fed’s assessment of the economy and the dot-plot also showed that the Fed’s intention of tightening further in 2023 despite the economy cooling. The next big level to watch on the downside in S&P 500 futures is the 3,740 level. USD flies higher after hawkish FOMC meeting As noted below in the comments on the FOMC wrap, the Fed’s hawkish surprise took the US dollar sharply higher across the board, with even EURUSD touching new lows for the cycle towards 0.9800 and USDJPY trying above the former cycle high near 145.00, though some push-back from Japanese officials overnight tamed that move partially. Still, if the move is linked directly to the latest rise in US yields, it may be difficult for short yields to continue rising at anything resembling the pace they have achieved over the last few weeks, with the 2-year rising from below 3% to above 4% since early August. Stronger US data from here suggests a more resilient US economy than expected (potentially lifting the entire US yield curve, importantly at the long end as well as the short end) is one way that the USD bull can continue rampaging. EURUSD heading for 0.98 EURUSD broke lower to fresh 20-year lows of 0.9809 amid Putin’s partial mobilization and the strength of the dollar from the hawkish Fed signals. While the ECB stays hawkish as well, the relative hawkishness still tilts in favor of the Fed due to the harsh winter coming up especially for Europe as Russia has cut gas supplies. The stronger case of a recession also continues to bode for more downside in EURUSD in the near-term. Japan's intervention warnings continue, without much effect on the yen As the Bank of Japan held its policy rates unchanged at ultra-low levels today in-line with expectations, there was a spike in yen volatility with a new 24-year low printed at 145.405 but that was soon reversed and USDJPY corrected back sharply lower to 143.55. The pair has since traded back higher towards 145 again, despite some stark FX warnings including top currency official Masato Kanda saying that the government could conduct stealth FX intervention and will remain on standby. To be fair, pressure on the yen should ease with long-end US yields reacting to recession concerns arising out of the more aggressive near-term rate hike plans of the Fed as was firmly communicated by the latest FOMC dot plot. Governor Kuroda will be on the wires at 3:30pm local time, and more yen volatility can be expected. Gold (XAUUSD) focus alternates between Powell and Putin Gold trades softer following another hawkish FOMC rate hike that helped send the dollar sharply higher. By continuing to raise interest rates while also raising expectations for lower growth and rising unemployment the FOMC is signaling a recession is a price worth paying for getting inflation under control. Putin’s increasingly desperate measures and threats regarding his war in Ukraine helped support gold and shield it from losses as the dollar and yields rose. Geopolitical support aside, the yellow metal may struggle as long yields continue to rise and the market continues to price inflation sub 3% in a year from now. Resistance was confirmed above $1680 while below $1654, last week's low, the market may target the 50% retracement of the 2018 to 2020 rally at $1618. Crude oil (CLX2 & LCOX2) Crude oil prices received a boost on Wednesday after Putin’s speech, but gains faded later in the day amid a hawkish Fed boosting the US dollar and strengthening the case for a deeper economic slowdown, not only in the US but around the world. EIA’s weekly stock report had a softening impact with crude and fuel stocks all rising while the four-week averaged demand for gasoline slumped to the lowest level since 1997 on a seasonal basis, and a measure of diesel demand fell to its lowest since 2009. Geopolitical worries and the EU embargo on Russian imports remain the main source of support for a market that is increasingly worried about an economic slowdown and with that lower demand for crude oil. US Treasuries (IEF, TLT) The more hawkish than expected Fed (more below) inverted the US yield curve further, as the 2-10 inversion fell well below -50 basis points and therefore to its most inverted level since the early 1980’s as the market figures that the Fed’s continue pace of rate tightening will eventually lead to a recession. While the 3.50% yield level was broken ahead of the FOMC meeting, all of the action was at the short-end of the curve yesterday as the Fed made clear it will hike even if economic conditions and the economy deteriorate. So, the surprise at the longer end of the yield curve would be a resilient economy. Either way, longer treasuries will trade nervously around inflation- and growth-related data releases from here. What is going on? Fed surprises hawkish as 2-year yield leaps over 4% The Fed managed to surprise on the hawkish side of expectation at yesterday’s FOMC meeting with the message embedded in the combination of the new set of staff economic projections and policy forecasts for this year and next. The surprise was less about the modestly higher median projections for the Fed policy rate by the end of this year and the end of next year relative to market expectations, and more that the Fed made those forecasts despite a significant lowering of the GDP forecast for this year and next and a sharp rise in the unemployment rate forecast. In other words, the clear message that the Fed is willing to continue hiking even if the economy deteriorates to get ahead of inflation made an impression, taking market expectations for Fed policy some 20 basis points higher by mid next year and spiking the US dollar higher and US yields to new cycle highs – mostly at the front end of the curve. Russia’s partial mobilization spurs risk off Russian President Putin, in his televised speech to the nation Wednesday morning, announced partial mobilization, calling up 300k reserves, whilst threatening the west with “All means of destruction, including nuclear ones”. Referendums in Donetsk, Luhansk, Kherson and Zaporozhye (15% of Ukraine territory) are scheduled September 23-27, and any fighting in these regions will be considered as attacks on “Russian territory” and thus pave the way for a potential military escalation, justifying the use of mass destruction weapons. US earnings recap General Mills rose 5% yesterday on better-than-expected earnings in its fiscal year Q1 on top of raising its outlook on organic revenue growth to 6-7% from 4-5% reflecting higher prices. The US homebuilder Lennar was down 2% on Q3 revenue and earnings in line with estimates and Q4 estimates on deliveries in line with analysts' expectations. But purchase contracts were down 12% from a year ago missing estimates highlighting the pressure from higher interest rates. Temporary measures to shield EU consumers from high energy prices are becoming permanent According to the calculations of the Brussels-based think tank Bruegel, European governments have allocated about €500bn to protect consumers since September 2021 (see the report). The exact figure is higher because Bruegel has not yet counted the most recent packages from the United Kingdom, Germany and Denmark. We would not be surprised if the total amount will reach at some point next year €1tr. But there is more. European governments have also allocated more to support utilities facing risk of liquidity crisis (several instruments are used including loans, bailouts and fully fledged nationalisation). This represents a total amount of €450bn (this is actually above half of the NexGenerationEU funding which was agreed after the Covid crisis). Dreadful growth forecasts for the eurozone We all know forecasting is a tricky task, even more so in the current macroeconomic environment (the impact of the energy crisis is tough to assess). Yesterday, Deutsche Bank revised downward its 2023 growth forecast for the eurozone, from minus 0.3 % to minus 2.2 %. This is a massive drop in GDP if it happens. It would be the third lowest euro area GDP growth since WW2 (behind 2009 and 2020, of course). This shows how low expectations are for the eurozone next year. Bank of England may tilt to hawkish despite recession concerns The BoE meets on Thursday after last week’s meeting was delayed by a week for Queen Elizabeth II’s funeral. Policymakers are expected to hike rates by another 50bps, which would bring the Bank Rate to 2.25%, although a 75bps hike is still on the table. Beyond September, analysts forecast a 50bps increase in November and 25bps in December, taking the Bank Rate to 3%, where it is expected to stay until October 2023. Also worth highlighting is the “fiscal event” delivered by new Chancellor of the Exchequer Kwasi Kwarteng on Friday. This will be his first statement on how he plans to deliver new Prime Minister Liz Truss' pledge to make the UK a low tax economy, which risks stoking inflation in the medium-term. However, short-term plans on energy support package suggest lower inflation to end this year, but that would not be enough for the BoE to go easy on its inflation fight. What are we watching next? Earnings calendar this week Today’s earnings focus is Costco and Darden Restaurants as both companies are exposed to the US consumer. Analysts expect Costco to show 15% y/y revenue growth as the US retailer gains market share on a strong competitive position amid the ongoing cost-of-living crisis. Darden Restaurants is expected to post a growth slowdown as the pent-up demand driven quarters following the reopening after the pandemic are over. Revenue growth is expected to slow to 7% y/y in FY23 Q1 (ending 31 August). Today: Costco Wholesale, Accenture, FactSet Research Systems, Darden Restaurants Friday: Carnival Economic calendar highlights for today (times GMT) 0730 – Switzerland SNB Meeting 0800 – Norges Bank Deposit Rate 1100 – Turkey Rate Decision 1100 – Bank of England meeting 1430 – EIA's Weekly Natural Gas Storage Change South Africa Rate Decision Follow SaxoStrats on the daily Saxo Markets Call on your favorite podcast app: Apple  Spotify PodBean Sticher Source: https://www.home.saxo/content/articles/macro/market-quick-take-sep-22-2022-22092022
What Should Gold Bulls Do To Keep XAUUSD Away From $1640 Zone?

What Should Gold Bulls Do To Keep XAUUSD Away From $1640 Zone?

Jing Ren Jing Ren 22.09.2022 08:22
XAUUSD struggles to bounce back Bullion whipsawed after the Fed's rate hike came out in line with expectations. The price’s failure to hold above the critical level at 1680 may have triggered a long journey to the south. The RSI’s oversold condition led to some profit-taking by intraday traders. But stiff selling could be expected in the former demand zone around 1700. The bulls, if there is any left must lift 1735 before a bounce could materialise. Otherwise, the precious metal may drift towards 1640 from the base of a bullish breakout back in April 2020. SPX 500 tests critical support The S&P 500 plunged after another super-sized US rate hike. The break below 3900 has invalidated the recent bounce and put the buy side on the defensive. As sentiment deteriorates, strong selling pressure may continue to prevail. A fall below 3820 at the origin of a bullish breakout last July shows little buying interest left, and the index could continue to sink to the daily support at 3725 which is a critical floor to prevent a bearish reversal. The support-turned-resistance at 3920 is the first hurdle in case of a rebound. USOIL awaits breakout WTI crude weakens over a gloomy economic prospect amid tighter financial conditions. Sentiment has remained fragile after the psychological level of 90.00 proved to be a tough level to crack for now. The current consolidation above 81.50 is temporary, and a breakout on either side would dictate the direction in the days to come. Only a rally above 90.00 could turn the mood around in the short-term. The bearish bias might take over and a breakout would resume the downtrend and send WTI to 78.00.
Central Bank Policies: Hawkish Fed vs. Dovish Others"

The Fed Will Do Whatever It Takes To Regain Control Of Inflation

InstaForex Analysis InstaForex Analysis 22.09.2022 12:49
Fed officials have given the clearest signal that they are willing to tolerate a recession in order to regain control of inflation. It seems that they are finally taking active steps to catch up after being criticized for being too late in realizing the magnitude of the inflation problem in the US. On Wednesday, the central bank raised interest rates by 75 basis points and announced a potential 1.25% increase before the end of the year. This is more hawkish than economists expected. Growth forecasts were also cut, while unemployment forecasts were lifted. Fed Chairman Jerome Powell repeatedly spoke of the painful slowdown needed to contain price pressures at their highest levels since the 1980s. Gold reacted brightly to this news. Powell told reporters that soft landings are likely to decrease to the point where policies need to be tighter or more restrictive for a longer period. This assessment contrasts sharply with six months ago, when Fed officials first started raising rates from near zero and pointed to the strength of the economy as a positive. Now, officials are implicitly acknowledging through their pessimistic unemployment forecasts that demand will need to be cut at all levels of the economy as inflation has proven resilient and widespread. The median forecast among the 19 Fed officials is that unemployment will hit 4.4% next year and remain at that level through 2024. But this new level may still be too low as interest rates are likely to hit 4.4% this year and 4.6% in 2023, before falling to 3.9% in 2024.   Relevance up to 11:00 2022-09-23 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. Read more: https://www.instaforex.eu/forex_analysis/322407
Gold Stocks Have Performed Very Well Under Pressure

The Geopolitical Conflict In Ukraine Briefly Pushed The Gold Price

InstaForex Analysis InstaForex Analysis 22.09.2022 13:37
Gold is going to win favor with investors as a safe haven asset after Russia's President Putin delivered a televised address to order a partial mobilization of reservists to bolster forces in Ukraine. The Russian leader warned the West he was prepared to use all available means to protect the Russian territory and respond to all threats to its territorial integrity. Putin's remarks were viewed as an escalatory address and another "nuclear blackmail". The deeply unpopular Kremlin's move enabled the US dollar to conquer a new 10-year peak. The US dollar index skyrocketed above 111 points shortly after the announcement. Nevertheless, gold managed to show resilience despite a new spike in the US dollar. Some analysts speculate that gold might have surged as high as $1,700 per troy ounce following the Fed's policy decision depending on the Fed's hawkish magnitude. In practice, the gold rally didn't happen. Head of Commodity Strategy at Saxo Bank Ole Hansen said that the recent price moves prove gold stayed afloat because of high demand for safe-haven assets, even though gold prices dropped to the lowest levels in two years, testing critical long-term support. By and large, gold has outpaced other assets amid global risk aversion that has been setting the tone for the overall market sentiment. Remarkably, gold has not collapsed to historic lows despite the stunning rally of the US dollar and massive sell-offs of stocks and government bonds. The geopolitical conflict in Ukraine briefly pushed the gold price to $2,000 per ounce. Nevertheless, later on, the geopolitical threat disappeared from investors' scope of interest. Indeed, investors have shifted focus toward inflation dynamics and rate hikes by major central banks. Hedge funds have been keeping short positions on gold for five weeks in a row. Ole Hansen admitted that gold has been bruised by ongoing headwinds on the back of the cycle of rate hikes. He also added that besides the demand for safety, investors view gold as a shield against errors in monetary policies. Influential central banks have not been able to contain inflationary pressure worldwide so far.   Relevance up to 09:00 2022-09-23 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. Read more: https://www.instaforex.eu/forex_analysis/322385
Worrisome Growth Signals in Eurozone PMI: Recession Risks Loom Amid Persistent Inflation Pressures

Inflation Expectations In Malaysia And Singapore, Costco Shares Fell And More

Saxo Bank Saxo Bank 23.09.2022 08:53
Summary:  Massive tightening was delivered globally after the Fed’s 75bps rate hike, which saw Bank of England, SNB, Norges Bank, and several emerging market central banks joining the race. Bond yields rose to fresh multiyear highs, with 10yr hitting 3.70% and 2yr well above 4%. The strength in the US labor market continues to hint at more room for tightening, and equities slumped. Japan’s intervention to defend the yen put some brakes on the dollar rally, but it would likely be ‘temporary’ at best, and focus shifts to US/UK and Eurozone PMIs today. What is happening in markets?   The Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) pressured by bond yields rising. S&P500 experiencing a rare technical breach With a parade of central banks joining the Fed in boosting rates to curb inflation, the US 10-year yield rose to 3.7% (its highest since 2011), while the two-year yield rose for the 11th day (which its longest rally in over three decades). This upward pressure in safe-haven yields is luring investors away from investing in companies exposed to inflation and facing earnings slowdowns. The Nasdaq Composite fell 1.4%, on Thursday, shedding 3% over the week, while the S&P500 lost 0.8% on Thursday, falling 3% Monday-Thursday. Of note, the S&P500 is experiencing a rare technical breach, as it trades under its 200-day moving average for over 100 sessions. The last time this occurred in the last 30 years; was in the tech bubble when the index fell 50% before hitting its trough, and before that, the Global Financial Crisis, when the index fell 40% before hitting its trough. The technical indicators show the index is poised for more downside with the June bottom likely to be retested in the coming weeks, then the next level of support is perhaps about the psychological level 3,500, which is 9.1% lower below current levels. Get to know the best performer in the US stock market this week, with the most momentum, General Mills The US’s biggest wheat producer General Mills (GIS) has outperformed the S&P500 this week and risen 7.4% and claimed the best performing post this week. It’s vital to reflect on why this is the case. We’ve been speaking about the Wheat (WHEATDEC22) price of late, being supported higher due to deteriorating global wheat supply, and now with Russia mobilizing fleet against Ukraine, the wheat price move supported higher again, on concerns Ukraine’s export terminal will be shut once more. Wheat is also in a technical uptrend, so we think stocks General Mills could be a stock to watch ahead, as its earnings are likely to swell. In the S&P500 this week, following General Mills (GIS) higher is; Kellogg and Campbell Soup, as the second and third best performers in the S&P500. Costco (COST) was down over 2% post-market on Thursday despite reporting better-than-expected earnings results.  Australia’s ASX200 (ASXSP200.1) to react to the Fed after being closed yesterday for a public holiday On Friday morning the futures are surprisingly calm, with the ASX200 suggested to only open 0.3% lower. So far this week, the ASX200 has once again outperformed global equities and only lost 0.5%, which is a stark contrast to the S&P500’s drop of 3%.  All eyes will be in cybersecurity stocks with Optus investigating a cyber-attack which may have led to authorized access of customer information. In terms of economic news to watch, S&P Global releases September PMI results. As for stocks to watching Fonterra might see increased bids after its APAC chief executive said she sees strong sales ahead for dairy protein. Rio Tinto will also be on watch after it signed a pact to promote low-carbon solutions for the steel value chain. Rio’s focus areas include low-carbon technology, blast furnace and basic oxygen furnace optimization and carbon capture utilization. Hong Kong’s Hang Seng (HSIU2) and China’s CSI300 (03188:xhkg) Hong Kong’s Hang Seng index was at 11-year lows yesterday amid the massive global tightening as well as rising geopolitical tensions. HSI later recovered some of the losses to end the day down 1.6%. Hong Kong's de-facto central bank mirrored the tightening and raised its base lending rate by 75 basis points to 3.5% with immediate effect. Hong Kong’s banks have waited through five rounds of rate hikes this year before moving. More pain is in store for Hong Kong’s borrowers, as the HKMA has been conducting its monetary policy in lockstep with the Fed since 1983 to maintain the local currency’s peg to the US dollar. EV shares tumbled with Xpeng down 11.6% and Nio falling 7.5%. Property sector continued to show weakness, with NWD down 3.4%. Meanwhile, CSI300 ended the day down 0.9% EURCHF ignored the intervention warnings EURCHF surged to 0.9700+ levels from 0.9465 after the SNB’s 75bps rate hike remained short of market’s expectation of a 100bps move. USDCHF also moved higher to touch 0.9850 from sub-0.9650 levels, but that was helped by a weaker US dollar following Japan’s intervention to defend the yen. With higher inflation forecasts, one can argue that there will be more room for the SNB to raise rates, and the CHF’s haven status could also come to its rescue as the case for economic slowdown gets stronger with the massive global tightening being delivered. Crude oil (CLU2 & LCOV2) focus back on supply issues Crude oil edged higher as OPEC warned of additional cuts to output. Nigeria’s oil minister, Timipre Sylva, said that OPEC would consider additional cuts if crude prices fall because current levels are affecting the budget of some member states. This helped the crude oil market to shrug off the massive tightening being delivered. A softer USD in the aftermath of Japan’s intervention also created room for the oil prices to focus on the demand-supply fundamentals. WTI futures rose to highs of $86/barrel before some easing, while Brent touched $92+.   What to consider? SNB delivers a 75bps rate hike The 75bps rate hike by the Swiss National Bank lifted the policy rate out of NIRP to 0.50% but disappointed the markets which had started to look for a 100bps rate hike. Guidance that further rate hikes cannot be ruled out was also accompanied by repeating guidance that they are willing to intervene in FX markets as necessary with Chairman Jordan subsequently stressing they are ready to step in to prevent excessive weakening or strengthening of the Franc. Bank of England goes for a dovish 50bps as recession concerns imminent While the consensus was looking for a 50bps rate hike from the Bank of England, market had started to price in a case for 75bps rate hike as well and so the decision to hike rates by 50bps was a slight disappointment. More so, the decision was not unanimous with three members supporting a 75bps move and one calling for a smaller 25bps move. However, the BoE confirmed that they are going to reduce their holdings of government bonds by GBP 80bln over the next 12 months, although the schedule remains open to amendments. Additionally, the BoE retained its guidance that they will continue to “respond forcefully” as necessary to inflation and while the peak forecast was reduced vs August’s update, it remains elevated and well above target. Finally, the Bank has downgraded its view on the UK economy in the near-term, Q3 2022 is now expected to see GDP declining by 0.1% (vs August projection of +0.4%), for a second quarter of contraction; a forecast which, if confirmed by the ONS release, implies the economy is already in a technical recession. US jobless claims suggests a resilient labor market Initial jobless claims marginally rose to 213k from the revised lower 208k but it was beneath the expected 218k. Meanwhile, continued claims fell to 1.379mln (prev. 1.401mln), also lower than the consensus 1.4mln, and dipped beneath 1.4mln for the first time since mid-July. While the strength in the labor market still remains intact given the large number of open positions in the American job market, some moderation can be expected in the coming months with the rapid pace of tightening and still-strained supply chains affecting output. However, as the Fed noted yesterday, the pace of rate hikes is set to continue despite some economic/labor market pain. Japan’s intervention temporarily strengthens the yen Japan’s first market intervention in over two decades came right after a hawkish FOMC and a steady policy decision by the Bank of Japan, with the widening yield differential between the US and Japan continuing to weigh on the Japanese yen. The intervention announcement came as USDJPY surged above 145 – the level that has been the line in the sand for last several weeks – and pair dropped to 140.36 over the next few hours. But as with most unilateral interventions, the effect was short-lived and USDJPY returned to 142+ levels subsequently, just as we had expected here. More steps remain likely, and the US Treasury said it understood Tokyo's move, but stopped short of endorsing it. Eurozone PMIs on the card to gauge how hawkish ECB can get Eurozone PMIs are likely to dip further into contractionary territory as energy price hikes weigh on spending and business plans. Manufacturing PMIs are likely to ease to 48.8 in September from 49.6 previously, and services are expected to fall to 49.1 from 49.8, according to Bloomberg consensus estimates. A weaker-than-expected number could temper the hawkish ECB bets for the October meeting. Singapore and Malaysia inflation to see further upside pressures Singapore’s headline inflation likely jumped further above the 7% mark in August from a reading of 7% YoY in July, underpinned by higher food and energy prices globally, higher rents due to under-supply, and demand side pressures from regional reopening and a pickup in tourism. Malaysia’s continued ban on chicken exports is also adding to the food inflation, and further tightening from the Monetary Authority of Singapore at the October meeting remains likely. Meanwhile, Malaysia’s inflation also likely rose further in August from 4.4% YoY in July due to higher commodity prices and weaker ringgit, as well as the strength in consumer demand. Bank Negara Malaysia’s next meeting is only scheduled in November, before which we will have another CPI print out. However, it can be assumed that monetary tightening will likely continue. Costco outperforms. Is this a sign of what to expect for fourth quarter earnings season? Costco reported fourth quarter earnings results that beat average analysts forecast, with total revenue hitting $72.09 billion, vs the $70.3 billion expected. It comes as fourth quarter membership fees rose 7.5% year on year, to $1.33 billion and accounted for 2% of the retailer's revenue. Although the company typically raises membership fees every five to six years (with its last fee increase in June 2017), Costco held off on rising fees “at this time”. Costco flagged that it sees some beginnings in the inflation situation improving, while it also expects to sell an overstock of holiday goods this season, which was left over from last year. Costco shares fell 2% post market after their results, implying its shares will sour when the market opens.    For a week-ahead look at markets – tune into our Saxo Spotlight. For a global look at markets – tune into our Podcast.   Source: https://www.home.saxo/content/articles/equities/apac-daily-digest-sept-23-2022-23092022
Middle Distillate Inventories Are Tight Around The Globe

The Global Container Shipping Is Weakening, The Bank of England Decisions And More

Saxo Bank Saxo Bank 23.09.2022 09:02
Summary:  Markets continue to absorb the impact of the FOMC meeting and other central banks continuing to tighten yesterday, with the chief concern for risk sentiment actually the leap in long US treasury yields yesterday, which more directly affect asset valuation models. The US 10-year yield benchmark jumped nearly 20 basis points yesterday to above 3.70% and thus to a new 11-year high. Elsewhere, the latest consumer confidence survey in Europe showed record low sentiment ahead of flash September Manufacturing and Services PMI’s out this morning from France, Germany and the Eurozone.   What is our trading focus? Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) Further weakness in US equities with the S&P 500 futures posting a new lower close for the cycle and continuing down this morning trading around the 3,770 level. The next big level to watch on the downside is 3,740 in S&P 500 futures which was the big support level multiple times back in July. US equities are naturally being dragged lower from the US bond yields pushing higher with the US 10-year yield rallying to 3.71% the highest since early 2010. In addition, the US leading indicators for August were weakening further with the y/y index pushing into the most negative level since the Great Financial Crisis excluding the dip during the pandemic suggesting the US economy could slip into a recession within the next 6-9 months. Hong Kong’s Hang Seng (HSIU2) and China’s CSI300 (03188:xhkg) Hong Kong’s Hang Seng index was at 11-year lows yesterday amid the massive global tightening as well as rising geopolitical tensions. HSI later recovered some of the losses to end the day down 1.6%. Hong Kong's de facto central bank mirrored the tightening and raised its base lending rate by 75 basis points to 3.5% with immediate effect. Hong Kong’s banks have waited through five rounds of rate hikes this year before moving. More pain is in store for Hong Kong’s borrowers, as the HKMA has been conducting its monetary policy in lockstep with the Fed since 1983 to maintain the local currency’s peg to the US dollar. EV shares tumbled with XPeng down 11.6% and Nio falling 7.5%. The property sector continued to show weakness, with NWD down 3.4%. Meanwhile, CSI300 ended the day down 0.9%. USDJPY volatile on BoJ intervention Japan’s first market intervention to support the yen in over two decades came right after a hawkish FOMC and a steady policy decision by the Bank of Japan, with the widening yield differential between the US and Japan continuing to weigh on the Japanese yen. The intervention announcement came as USDJPY surged above 145 – the level that has been the line in the sand for last several weeks – and pair dropped to 140.36 over the next few hours. But as with most unilateral interventions, the effect was short-lived and USDJPY returned to 142+ levels subsequently, just as we had expected here. More steps remain likely, and the US Treasury said it understood Tokyo's move, but stopped short of endorsing it. EURCHF ignored the intervention warnings EURCHF surged to 0.9700+ levels from 0.9465 after the SNB’s 75bps rate hike remained short of market’s expectation of a 100bps move. USDCHF also moved higher to touch 0.9850 from sub-0.9650 levels, but that was helped by a weaker US dollar following Japan’s intervention to defend the yen. With higher inflation forecasts, one can argue that there will be more room for the SNB to raise rates, and the CHF’s haven status could also come to its rescue as the case for economic slowdown gets stronger with the massive global tightening being delivered. Gold (XAUUSD) holding up despite the dollar and yield strength Gold has held up well despite multiple rate hikes and the dollar reaching multi-year highs against several major currencies.  By continuing to raise interest rates while also raising expectations for lower growth and rising unemployment the FOMC is signaling a recession is a price worth paying for getting inflation under control. Putin’s increasingly desperate measures and threats regarding his war in Ukraine has helped support gold and shield it from losses but geopolitical support aside, the yellow metal may struggle as long yields continue to rise and the market continues to price inflation sub 3% in a year from now. Resistance has moved to $1690 while below $1654, last week's low, the market may target the 50% retracement of the 2018 to 2020 rally at $1618. Crude oil (CLX2 & LCOX2) Crude oil remains stuck near the lower end of its recent tight range with the Powell versus Putin battle (demand versus supply) not having a clear winner so far. Brent and WTI are nevertheless both heading for a small fourth weekly loss as the global economic outlook grows darker following a week where central banks around the world, led by the US Fed continued to apply the brakes through rate hikes in order to curb runaway inflation. A difficult and potentially volatile quarter awaits with multiple and contradictory uncertainties having their say in the direction. WTI support at $82 and $87.50 in Brent. Wheat futures jump driven by Ukraine and weather concerns Chicago and Paris wheat futures, two of the best performing commodities markets this week, trade at a two-month high supported by risks of a deepening conflict in Ukraine putting the UN supported grain export corridor at risk, and dry weather in crop areas of Argentina and the U.S. Plains. This despite a forecast from the International Grains Council pointing to an increased 2022/23 global wheat production. Paris Milling wheat (EBMZ2) reached €350 per ton on Thursday with support now the previous triple top at €340 per ton. In Chicago the December wheat contract (ZWZ2) reached a $9.22 per bushel high but for a second day in a row failed to close above the 200-day moving average at $9.16 per bushel. US treasuries (TLT, IEF) A key day for longer US treasuries yesterday, with the US 10-year treasury benchmark closing nearly 20 basis points higher yesterday to a prominent new cycle high above 3.70%. Perhaps the most interesting development was that the move sharply steepened the US yield curve, with the 2-10 slope rising to -41 bps from below -50 bps the day before. Are markets concerned the Fed cycle will extend for longer, that more treasury supply will be coming from the Fed’s QT picking up pace or from the Bank of Japan selling treasuries to fund intervention, that the US growth outlook is actually more positive than previously thought or all of the above? Whatever the cause, US long treasury yields are likely to prove a key driver across markets as long as they continue to rise to new cycle highs. What is going on? US jobless claims suggest a resilient labor market Initial jobless claims marginally rose to 213k from the revised lower 208k but it was beneath the expected 218k. Meanwhile, continued claims fell to 1.379mn (prev. 1.401mn), also lower than the consensus 1.4mln, and dipped beneath 1.4mln for the first time since mid-July. While the strength in the labor market remains intact given the large number of open positions in the American job market, some moderation can be expected in the coming months with the rapid pace of tightening and still-strained supply chains affecting output. However, as the Fed noted yesterday, the pace of rate hikes is set to continue despite some economic and labor market pain. SNB delivers a 75bps rate hike The 75 bps rate hike by the Swiss National Bank lifted the policy rate out of NIRP to 0.50% but disappointed the markets which had started to look for a 100bps rate hike. Guidance that additional rate hikes cannot be ruled out was also accompanied by repeating guidance that they are willing to intervene in FX markets as necessary with Chairman Jordan subsequently stressing, they are ready to step in to prevent excessive weakening or strengthening of the Franc. Bank of England goes for a dovish 50bps as recession concerns imminent While the consensus was looking for a 50bps rate hike from the Bank of England, market had started to price in a case for 75bps rate hike as well and so the decision to hike rates by 50bps was a slight disappointment. More so, the decision was not unanimous with three members supporting a 75bps move and one calling for a smaller 25bps move. However, the BoE confirmed that they are going to reduce their holdings of government bonds by GBP 80bln over the next 12 months, although the schedule remains open to amendments. Additionally, the BoE retained its guidance that they will continue to “respond forcefully” as necessary to inflation and while the peak forecast was reduced vs August’s update, it remains elevated and well above target. Finally, the Bank has downgraded its view on the UK economy in the near-term, Q3 2022 is now expected to see GDP declining by 0.1% (vs August projection of +0.4%), for a second quarter of contraction; a forecast which, if confirmed by the ONS release, implies the economy is already in a technical recession. Global container shipping rates are in free fall The collapse in global container shipping rates is gathering pace with the Drewry Composite down 10% on the week to $4,472 per 40 feet box, and lowest since Dec 2020. Down 57% from the Sept 21 peak but still three times higher than the pre-pandemic average, suggesting further downside as the global economy continues to lose steam. All the major China to US and EU routes have slumped. Costco earnings are strong Costco reported fourth quarter earnings results that beat average analysts' forecast, with total revenue hitting $72bn vs est. $70.3bn. It comes as fourth quarter membership fees rose 7.5% y/y to $1.33bn and accounted for 2% of the retailer's revenue. Although the company typically raises membership fees every five to six years (with its last fee increase in June 2017), Costco held off on rising fees “at this time”. Costco flagged that it sees some beginnings in the inflation situation improving, while it also expects to sell an overstock of holiday goods this season, which was left over from last year. The retailer said that the biggest cost pressures were now in labour expenses. General Mills, the best performer in the S&P500 this week The US biggest wheat producer General Mills has outperformed the S&P500 this week and risen 7.4% due to a much better than expected earnings release and strong wheat prices recently related to Russia’s escalation in its war in Ukraine. AUDNZD hit a new high after NZ trade balance disappointed again AUDNZD rallied to fresh 9-year high at 1.1371 with the next potential target in focus being the 2015 high at 1.1430. The uptrend continued after NZ reported its trade balance worsened in August trade data after NZ’s imports accelerated while exports have declined. The deficit in NZ Trade Balance widened further to -$12.28B vs. the prior release of -$11.97B on an annual basis. This is a stark contrast to Australia, which is reporting record surpluses in its trade balance, due to exporting record amounts of coal. What are we watching next? Eurozone PMIs on the card to gauge how hawkish ECB can get Eurozone PMIs are likely to dip further into contractionary territory as energy price hikes weigh on spending and business plans. Manufacturing PMIs are likely to ease to 48.8 in September from 49.6 previously, and services are expected to fall to 49.1 from 49.8, according to Bloomberg consensus estimates. A weaker-than-expected number could temper the hawkish ECB bets for the October meeting. Chicago Fed National Activity Index and US financial conditions With US leading indicators y/y dipping into the most negative territory since the Great Financial Crisis excluding the dip during the pandemic, the Chicago Fed National Activity Index and US financial conditions updates for August and latest week respectively are important to watch for equity sentiment. Earnings calendar this week Today’s earnings focus is Carnival reporting FY22 Q3 results (ending 31 August) with revenue expected to rise 800% y/y to $4.9bn as the cruise line industry is coming back from years of subdued demand due to the pandemic. Today: Carnival Economic calendar highlights for today (times GMT) 0715-0800 France, Germany, Eurozone Flash September Manufacturing and Services PMI 0830 - UK Sep. Flash Manufacturing and Services PMI 1230 - Canada Jul. Retail Sales 1345 – US Manufacturing and Services PMI 1800 - US Fed Chair Powell to speak at event Follow SaxoStrats on the daily Saxo Markets Call on your favorite podcast app: Apple  Spotify PodBean Sticher   Source: https://www.home.saxo/content/articles/macro/market-quick-take-sep-23-2022-23092022
Gold Is Showing A Good Sign For Further Drop

Rising Economic Risks Are Helping Gold Find A Solid Low

InstaForex Analysis InstaForex Analysis 23.09.2022 11:38
The gold market is showing relative strength against the US dollar, which continues to trade near its highest level since 2002 In her latest research note, Nicky Shiels, head of metals strategy at MKS PAMP, said rising economic risks are helping gold find a solid low around $1,650, even as the Federal Reserve maintains its aggressive monetary stance by lowering growth forecast. On Wednesday, after raising interest rates by another 75 basis points, US central bank economic forecasts showed that the federal funds rate will peak in 2023 at around 4.6%. But despite the rise in interest rates, the Fed lowered its growth forecast for the US economy, suggesting its growth by 0.2% this year. And, compared with the June forecasts by 1.2%. During the press conference, Fed Chairman Jerome Powell warned consumers that as the central bank focuses on lowering inflation, economic trouble is not far off. Shiels noted that after Powell's press release, gold reached new weekly lows and then highs in just 45 minutes. According to her, this is "something that hasn't happened on FOMC day in a while." Moreover, Shiels added that bearish speculative positioning can now also work in gold's favor as there has been continuous strong selling throughout most of the summer. Gold has been so beaten up that it is becoming immune to excessive interest rate hikes by the Fed. Since gold prices are showing a strong rebound from two-year lows, the precious metal has enough momentum to rise by $50 in the near future. But for the full realization of the growth of gold prices, significant fundamental changes are needed.       Relevance up to 08:00 2022-09-24 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. Read more: https://www.instaforex.eu/forex_analysis/322475
Bitcoin Maintains A Steady Bullish Potential

No One Is Surprised That Bitcoin Is Lower, Wall Street Will Substantially Cut Its S&P 500 Targets

Ed Moya Ed Moya 24.09.2022 13:54
Unsettling market volatility is going to be here for a while as Wall Street broadly downgrades their end of year S&P 500 targets. The bond market is telling us they firmly believe Fed Chair Powell has rolled up his sleeves and is ready for this fight with inflation to get ugly. It appears that a hard landing is becoming more likely and that is driving this current round of risk aversion. Every time we get a better-than-expected economic reading, traders are anticipating that will allow the Fed to be even more aggressive with tightening of policy.  Today’s US flash PMIs showed business activity improved and while input-cost inflation cooled.  The rest of the world is seeing strong contraction readings and that will keep the stock market selling pressure widespread.  With one week left in the quarter, Goldman Sachs had to admit they were wrong with their optimistic stock market outlook and sliced their end of year S&P 500 target from 4,300 points to 3,600, which would be below the June low. A lot of traders expected hints of a Fed pivot at Jackson Hole or at the September FOMC policy, but that never happened. A hard landing is becoming the base case scenario for many and that means more economic pain along with a much weaker stock market is coming. How far we go below the summer lows is anyone’s guess.  Over the next couple of weeks, long-term investors may hesitate buying into weakness because it doesn’t seem like any economic data release or Fed speak will convince markets that a downshift from this aggressive tightening campaign will be happening anytime soon.  Downside targets for the S&P 500 include the 3,470 level, which might look attractive for some long-term investors.  FX The British pound collapsed after Chancellor of the Exchequer Kwarteng’s fiscal statement.  Financial markets abandoned bets on the British pound and UK bonds as foreign investors doubt the government will be able to fund this new round of debt.  The British pound is sharply lower on the markets rejection of this fiscal handout that includes both the biggest tax cut in half a century and investment incentives. Oil Oil tanks as global growth concerns hit panic mode given a chorus of central bank commitments to fight inflation.  It seems central banks are poised to remain aggressive with rate hikes and that will weaken both economic activity and the short-term crude demand outlook. The dollar rally is about to enter another level that could keep the pressure on commodities, especially oil prices.  Rig counts continue their steady rise, climbing by 3 and bringing the total to 602. The steady climb in rigs however has not led to any significant increases with US production.  Once WTI crude broke below the $80 level, technical selling was persistent. Despite all the bearishness that is hitting oil prices, economic activity isn’t falling off a cliff. Next week, energy traders will pay close attention to a tropical depression that could become a hurricane that is headed towards Florida.  If the selling remains strong at the start of next week, major support now resides at the $74 level.  Gold Gold continues to get picked on as global bond yields at the short-end of the curve skyrocket.  Everything is going wrong for gold; Strong dollar, weakening jewelry demand as China’s outlook continues to deteriorate, central banks are not focusing on buying bullion, and the bond market remains its worst enemy. If gold’s selling pressure remains, prices could tumble towards the psychological $1600 level. Crypto It is an ugly day on Wall Street and no one is surprised Bitcoin is lower.  Risky assets are getting hit hard as a wrath of global central bank tightening is leading many to think hard economic times are upon us.  Despite today’s crypto weakness, Bitcoin selling has not made a clear attempt at the summer lows. Bitcoin is only $1000 away from June low, so traders will pay close to attention to what happens over the weekend.  Weekend volatility could be interesting here and if a breach of the summer low occurs, don’t be surprised if that does not last until Asia opens on Sunday night. On a day when stocks are down over 2%, you would expect Bitcoin to be down double or triple that and not just around 3% weaker, which could mean many long-term holders remain unfazed.  This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Bio Twitter Latest Posts  
Gold Has A Chance For The Rejection Of The Support

The Price Of Gold Could Come Back Down After False Breakouts

InstaForex Analysis InstaForex Analysis 26.09.2022 08:32
The price of gold dropped as much as 1,626 in the early morning when it found demand. Now, it is located at about 1,639 at the time of writing. After its massive drop, a rebound was natural. Fundamentally, XAU/USD extended its sell-off as the DXY rallied after better-than-expected US data was reported on Friday. The Flash Services PMI was reported at 49.2 points versus the 45.5 expected, while Fash Manufacturing PMI came in at 51.8 points compared to the 51.0 points estimated. XAU/USD Retests 1,641 Resistance! XAU/USD accelerated its sell-off after dropping again below1,641. You knew from my previous analysis that a new lower low after retesting 1,654 - 1,659 activates more declines. It was almost to reach the weekly S1 (1,626) which was seen as a downside obstacle. Now, it has registered a strong rebound signaling exhausted sellers. In the short term, the rate could test and retest the near-term resistance levels before dropping deeper. XAU/USD Outlook! Testing and retesting 1,641, registering only false breakouts may signal a new sell-off. The price could come back down to 1,626 today's low. A larger rebound could be activated by a valid breakout above 1,641 and if jumps and closes above 1,646 today's high.   Relevance up to 06:00 2022-09-27 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade. Read more: https://www.instaforex.eu/forex_analysis/294120
For What It Is Worthy To Pay Attention Next Week 23.01-29.01

Markets Affected By The Announcement Of Tax Cuts In The UK, The Intervention Of The Japanese Authorities

Saxo Bank Saxo Bank 26.09.2022 09:07
Summary:  The global macro environment took another beating late last week with disappointing Eurozone PMIs and a UK mini-budget causing a havoc in markets as it fueled further debt and inflation concerns. Dollar dominance continued with sterling pressured despite higher UK yields, and risk off tone is likely to continue as Russia-Ukraine tensions in focus. The yen’s intervention risks also on watch as Japan returns from holiday today. Oil prices slid to multi-month lows amid a stronger dollar and demand concerns, with supply factors turning supportive for now, weighing on energy stocks. What is happening in markets?   The Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) continue to tumble on rising interest rates  The selloff last Friday continued its long stretch of turbulence, which first kicked off following Powell’s hawkish Jackson Hole speech on August 26, then was exacerbated by a much-stronger-than expected CPI on September 13. And the selloff has most recently been bolstered by the hawkish rate and economic projections released after the FOMC meeting last Wednesday. Adding to the woes, earnings warnings from heavy-weight industrial and transportation companies have warned of weaker demand and an opaque outlook. The S&P 500 lost 12% and Nasdaq 100 dropped 13.9% over the period. Of note, last Friday, financial conditions tightened further, with US 2-year yields soaring to 4.2%, the highest since 2007, while the dollar soared to a new high and dragged down stocks, with both the S&P 500 and Nasdaq ending Friday down 1.7% lower.   Big US stock movers: oil and gas stocks plunge as oil falls to an eight-month low  All 11 sectors in the S&P500 closed lower on Friday, with Energy falling the most, 6.8%, after WTI crude declined by about 5% to an eight-month low after the US dollar hit its highest level in two decades on fears rising interest rates will tip major economies into a recession. APA Corp (APA:xnas) and Marathon Oil (MRO:xnys) fell about 11%. FedEx (FDX:xnys) fell 3.4% with its US$2.7 billion cost-saving by cutting flights, deferring projects, and closing offices facing skepticism. Ford (F:xnys) fell 3.6%, following a WSJ report that Ford delayed vehicle deliveries due to supply chain issues in getting Ford logo badges to put on its vehicles. On the upside, Generac Holdings (GRNC:xyns), Domino’s Pizza (DPZ:xyns) shares rose the most in the S&P 500 on Friday, gaining 3.2% and 3.1% respectively, perhaps with traders closing shorts as their stocks are continuing to hit new lows on a yearly basis.  U.S. treasuries (TLT:xnas, IEF:xnas, SHY:xnas) rattled by soaring U.K. bond yields  In London trading hours before New York came in, U.S. treasuries were rattled by the jaw-dropping, emerging market style meltdown in U.K. Gilts, as 5-year UK Gilts soared 50bps and 10-year Gilts jumped 33bps in yields in an hour, following the announcement of a massive loosening of fiscal policy of nearly 2% of GDP by the new U.K. government. Investors are worried as when the U.K. acted similarly last time in 1972, inflation soared and the U.K. had to go to the IMF for a loan in 1976. When New York came in, bids emerged for U.S. treasuries, in particular, for the long end of the curve. 10-year and 30-year yields fell 3bps to 3.68% and 3.61% respectively while 2-year yields finished the session 8bps higher at 4.20%, the highest level since 2007.    Hong Kong’s Hang Seng (HSIU2) and China’s CSI300 (03188:xhkg) glided lower  Hang Seng Index continued its losing streak and tumbled 1.2% to its lowest level last seen in 2011.  Materials, healthcare, China Internet, EV, shipping, and consumer stocks led the market lower.  In the materials sector, Ganfeng Lithium (01772:xhkg) plunged 5%, followed by MMG (01208:xhkg) down 3.6%, and China Shenhua (01088:xhkg)  off 3.4%.  Despite the weakness in international crude oil prices, PetroChina (00857:xhkg) and Sinopec (00386:xhkg) managed to bounce by around 1.5%. Alibaba (09988:xhkg), Tencent (00700), and Meituan (03690:xhkg) declined by nearly 3%. Hong Kong’s end of hotel quarantine requirement lifted the share price Cathay Pacific (00293:hk) by 1% while Chinese airlines declined moderately.  Hong Kong luxury retailers gained, with Oriental Watch (00398:xhkg), Luk Fook and Chow Sang Sang rising from 0.5% to 2.2%. Banks in Hong Kong gained in anticipation of improvement in net interest margins following the lenders increased their prime rates, BOC Hong Kong (02388:xhkg) rising 3.8%, Hang Seng Bank (00011:xhkg) up by 2.5%. In mainland A shares, CSI300 swung between modest gains and losses and finished the day down by 0.3% and declining to within 3% from its April low. In terms of sectors, electronics, semiconductors, autos, coal, and solar power were among the worst laggards, while banks and appliances outperformed. Australia’s ASX200 (ASXSP200.1) to be pressured by oil prices pulling back  This week Australia’s share market will likely take its lead from commodity prices pulling back, with oil stocks like Woodside (WDS:xasx), Santos (STO:xasx) and Worley (WOR:xasx) to take a hair cut. Inversely, the coal price has continued to move higher, along with coal futures, so there is likely to be further upsdise in coal stocks including; New Hope, Whitehaven (WHC:xasx) and Coronado (CRN:Xasx) Washington Soul Patts (SOL:xasx). Dollar dominance continues, sterling battered The dollar rallied broadly, hitting a new all-time high against a currency basket and pushing the euro to a 20-year low while the pound plunged to a fresh 37-year low below 1.10 after the new UK government unveiled a massive fiscal stimulus plan to boost economic growth, which is sure to send inflation soaring even higher and force the BOE to do even more QT. Safe-haven demand also boosted the greenback amid risks from the escalation of Russia tensions and more signs of a slowing Chinese economy, which raised concerns about the outlook for global economic growth.  Crude oil (CLU2 & LCOV2) inches below key supports Crude oil prices fell sharply last week with the focus fixed on demand concerns while supply issues turned supportive. The continued surge higher in dollar and yields, aided by not just the FOMC but also the UK fiscal expansion measures into the end of the week, drove a slump in risk appetite. Brent crude fell to a nine-month low of $86.15/bbl, and this may warrant an OPEC action to support prices. Russia also warned it will not supply commodities to nations that join any agreement to cap prices for its crude. WTI crude traded below $80/bbl in early Asian trading hours as the new week kicked off.   What to consider? US PMIs come in better than expectations US flash PMIs for September surpassed expectations across the board, as manufacturing rose to 51.8 (prev. 51.5, exp. 51.1) and services, despite remaining in contractionary territory, printed 49.2 (prev. 43.7, exp. 45.0). Composite lifted to 49.3 from 44.6. At the same time, the inflation components of the PMIs continue to show some relief, with the report showing that supplier shortages eased and both cost and selling prices for both goods and services were at fresh lows, while still-high compared to the usual levels.  Eurozone PMIs disappoint, but ECB speakers (including Lagarde) will be in focus this week Both manufacturing and services PMIs for the Eurozone came in weaker-than-expected in a flash reading for September, with rising energy costs and decline in purchasing power weighing on manufacturing activity as well as the services sector. The headline reading fell to 48.2 in September from 48.9 in August. New orders disappointed, and the outlook was bleak as well. Manufacturing continues to be hit harder by elevated commodity prices. The reading slipped to 48.5 from 49.6. The services figure came in a bit higher at 48.9, but still fell from 49.8 in the previous reporting period. While supply bottlenecks eased, surging energy prices suggest these could reverse again. UK’s historic tax cuts raise the case for a BOE’s emergency rate hike New UK Chancellor Kwasi Kwarteng announced a mini-budget on Friday, which included wide-ranging tax cuts of the order of GBP 45bn, adding to an estimated cost of GBP 60bn for the energy plan. Instead of stabilizing markets, the announcement sparked mayhem as it promised even more inflation at a time when the UK is set to slide into a crippling stagflationary recession as prices soar. Bank of England last week stuck with a 50bps rate hike as recession is likely on the cards. Bonds were sold off and the sterling dipped to 37-year lows, suggesting UK’s inflation-fighting credibility at stake and demands risk premia.  Investors pile into insurance against further market sells offs. Over the last four weeks money managers have spent US$34 billion purchasing put options, which provides protection against a further fall in stock markets (according to the Financial Times). According to the article, ‘Investors pile into insurance against further market sell-offs', $9.6 billion was spent in the last weeks alone on options protecting against downside risks.  Will Japanese authorities intervene further to defend the yen? The Japanese authorities intervened in the currency markets for the first time in two decades last Thursday. USDJPY’s move above 145 following a hawkish FOMC and a still-accommodative Bank of Japan prompted the intervention, and dragged the pair to sub-141 levels before some of the move was retraced. However, Japan was closed on Friday for a holiday, and returns to trading today. Moreover, Govern