Month: February 2023

Sterling strengthens after U.K. signed a new post-Brexit trade deal with EU

Posted on by Vrasidas Neofytou

British assets showed some strength after the announcement as the deal brightens the outlook for the post-Brexit U.K. economy and marks improved relations between London, the Eurozone’s bloc, and the United States, by removing some of the uncertainty that has hurt British assets since the 2016 vote to leave the bloc.

British assets showed some strength after the announcement as the deal brightens the outlook for the post-Brexit U.K. economy and marks improved relations between London, the Eurozone’s bloc, and the United States, by removing some of the uncertainty that has hurt British assets since the 2016 vote to leave the bloc.

The British parliament is expected to vote on the deal, with the opposition Labour Party saying it will vote in favour, while the leader of Northern Ireland’s Democratic Unionist Party (DUP) said his party was working through the details, which should make trade smoother for businesses by easing rules.

British assets showed some strength after the announcement as the deal brightens the outlook for the post-Brexit U.K. economy and marks improved relations between London, the Eurozone’s bloc, and the United States, by removing some of the uncertainty that has hurt British assets since the 2016 vote to leave the bloc.

The British parliament is expected to vote on the deal, with the opposition Labour Party saying it will vote in favour, while the leader of Northern Ireland’s Democratic Unionist Party (DUP) said his party was working through the details, which should make trade smoother for businesses by easing rules.

British assets showed some strength after the announcement as the deal brightens the outlook for the post-Brexit U.K. economy and marks improved relations between London, the Eurozone’s bloc, and the United States, by removing some of the uncertainty that has hurt British assets since the 2016 vote to leave the bloc.

The trade deal, known as the Windsor Framework, seeks to resolve the tensions caused by the trading rules for the only part of the U.K. that has a land border with the EU, and it will likely pave the way for a better relationship between London and Brussels.

The British parliament is expected to vote on the deal, with the opposition Labour Party saying it will vote in favour, while the leader of Northern Ireland’s Democratic Unionist Party (DUP) said his party was working through the details, which should make trade smoother for businesses by easing rules.

British assets showed some strength after the announcement as the deal brightens the outlook for the post-Brexit U.K. economy and marks improved relations between London, the Eurozone’s bloc, and the United States, by removing some of the uncertainty that has hurt British assets since the 2016 vote to leave the bloc.

The trade deal, known as the Windsor Framework, seeks to resolve the tensions caused by the trading rules for the only part of the U.K. that has a land border with the EU, and it will likely pave the way for a better relationship between London and Brussels.

The British parliament is expected to vote on the deal, with the opposition Labour Party saying it will vote in favour, while the leader of Northern Ireland’s Democratic Unionist Party (DUP) said his party was working through the details, which should make trade smoother for businesses by easing rules.

British assets showed some strength after the announcement as the deal brightens the outlook for the post-Brexit U.K. economy and marks improved relations between London, the Eurozone’s bloc, and the United States, by removing some of the uncertainty that has hurt British assets since the 2016 vote to leave the bloc.

On early Monday, the GBPUSD pair bounced 1% from the yearly lows of $1,1950 to the current highs of $1,2080 following the announcement by British Prime Minister Rishi Sunak that the U.K. has struck a deal with the European Union on post-Brexit trade rules for Northern Ireland.

The trade deal, known as the Windsor Framework, seeks to resolve the tensions caused by the trading rules for the only part of the U.K. that has a land border with the EU, and it will likely pave the way for a better relationship between London and Brussels.

The British parliament is expected to vote on the deal, with the opposition Labour Party saying it will vote in favour, while the leader of Northern Ireland’s Democratic Unionist Party (DUP) said his party was working through the details, which should make trade smoother for businesses by easing rules.

British assets showed some strength after the announcement as the deal brightens the outlook for the post-Brexit U.K. economy and marks improved relations between London, the Eurozone’s bloc, and the United States, by removing some of the uncertainty that has hurt British assets since the 2016 vote to leave the bloc.

On early Monday, the GBPUSD pair bounced 1% from the yearly lows of $1,1950 to the current highs of $1,2080 following the announcement by British Prime Minister Rishi Sunak that the U.K. has struck a deal with the European Union on post-Brexit trade rules for Northern Ireland.

The trade deal, known as the Windsor Framework, seeks to resolve the tensions caused by the trading rules for the only part of the U.K. that has a land border with the EU, and it will likely pave the way for a better relationship between London and Brussels.

The British parliament is expected to vote on the deal, with the opposition Labour Party saying it will vote in favour, while the leader of Northern Ireland’s Democratic Unionist Party (DUP) said his party was working through the details, which should make trade smoother for businesses by easing rules.

British assets showed some strength after the announcement as the deal brightens the outlook for the post-Brexit U.K. economy and marks improved relations between London, the Eurozone’s bloc, and the United States, by removing some of the uncertainty that has hurt British assets since the 2016 vote to leave the bloc.

GBP/USD pair, 1-hour chart

On early Monday, the GBPUSD pair bounced 1% from the yearly lows of $1,1950 to the current highs of $1,2080 following the announcement by British Prime Minister Rishi Sunak that the U.K. has struck a deal with the European Union on post-Brexit trade rules for Northern Ireland.

The trade deal, known as the Windsor Framework, seeks to resolve the tensions caused by the trading rules for the only part of the U.K. that has a land border with the EU, and it will likely pave the way for a better relationship between London and Brussels.

The British parliament is expected to vote on the deal, with the opposition Labour Party saying it will vote in favour, while the leader of Northern Ireland’s Democratic Unionist Party (DUP) said his party was working through the details, which should make trade smoother for businesses by easing rules.

British assets showed some strength after the announcement as the deal brightens the outlook for the post-Brexit U.K. economy and marks improved relations between London, the Eurozone’s bloc, and the United States, by removing some of the uncertainty that has hurt British assets since the 2016 vote to leave the bloc.

GBP/USD pair, 1-hour chart

On early Monday, the GBPUSD pair bounced 1% from the yearly lows of $1,1950 to the current highs of $1,2080 following the announcement by British Prime Minister Rishi Sunak that the U.K. has struck a deal with the European Union on post-Brexit trade rules for Northern Ireland.

The trade deal, known as the Windsor Framework, seeks to resolve the tensions caused by the trading rules for the only part of the U.K. that has a land border with the EU, and it will likely pave the way for a better relationship between London and Brussels.

The British parliament is expected to vote on the deal, with the opposition Labour Party saying it will vote in favour, while the leader of Northern Ireland’s Democratic Unionist Party (DUP) said his party was working through the details, which should make trade smoother for businesses by easing rules.

British assets showed some strength after the announcement as the deal brightens the outlook for the post-Brexit U.K. economy and marks improved relations between London, the Eurozone’s bloc, and the United States, by removing some of the uncertainty that has hurt British assets since the 2016 vote to leave the bloc.

GBP/USD pair, 1-hour chart

On early Monday, the GBPUSD pair bounced 1% from the yearly lows of $1,1950 to the current highs of $1,2080 following the announcement by British Prime Minister Rishi Sunak that the U.K. has struck a deal with the European Union on post-Brexit trade rules for Northern Ireland.

The trade deal, known as the Windsor Framework, seeks to resolve the tensions caused by the trading rules for the only part of the U.K. that has a land border with the EU, and it will likely pave the way for a better relationship between London and Brussels.

The British parliament is expected to vote on the deal, with the opposition Labour Party saying it will vote in favour, while the leader of Northern Ireland’s Democratic Unionist Party (DUP) said his party was working through the details, which should make trade smoother for businesses by easing rules.

British assets showed some strength after the announcement as the deal brightens the outlook for the post-Brexit U.K. economy and marks improved relations between London, the Eurozone’s bloc, and the United States, by removing some of the uncertainty that has hurt British assets since the 2016 vote to leave the bloc.

The Pound Sterling rebounds to nearly $1,2080 on Tuesday morning following the new trade deal between the U.K. and the European Union, which will likely remove some trade frictions between the two parties after Brexit.

GBP/USD pair, 1-hour chart

On early Monday, the GBPUSD pair bounced 1% from the yearly lows of $1,1950 to the current highs of $1,2080 following the announcement by British Prime Minister Rishi Sunak that the U.K. has struck a deal with the European Union on post-Brexit trade rules for Northern Ireland.

The trade deal, known as the Windsor Framework, seeks to resolve the tensions caused by the trading rules for the only part of the U.K. that has a land border with the EU, and it will likely pave the way for a better relationship between London and Brussels.

The British parliament is expected to vote on the deal, with the opposition Labour Party saying it will vote in favour, while the leader of Northern Ireland’s Democratic Unionist Party (DUP) said his party was working through the details, which should make trade smoother for businesses by easing rules.

British assets showed some strength after the announcement as the deal brightens the outlook for the post-Brexit U.K. economy and marks improved relations between London, the Eurozone’s bloc, and the United States, by removing some of the uncertainty that has hurt British assets since the 2016 vote to leave the bloc.

EUR/USD falls below $1,06 on a stronger dollar and hawkish Fed

Posted on by Vrasidas Neofytou

The PCE price index is a wide indicator of the average increase in prices for all domestic personal consumption and is widely expected to reiterate that U.S. inflation remained elevated in January.

The PCE price index is a wide indicator of the average increase in prices for all domestic personal consumption and is widely expected to reiterate that U.S. inflation remained elevated in January.

The fundamentals are now favoring the dollar against the euro as investors braced for U.S. interest rates to be higher for longer, with the DXY-U.S. dollar index, which tracks the value of the greenback against six major peers, climbing over 104,70 this morning ahead of a reading on the PCE-Personal Consumption Expenditures index – the Fed’s preferred inflation gauge.

The PCE price index is a wide indicator of the average increase in prices for all domestic personal consumption and is widely expected to reiterate that U.S. inflation remained elevated in January.

The fundamentals are now favoring the dollar against the euro as investors braced for U.S. interest rates to be higher for longer, with the DXY-U.S. dollar index, which tracks the value of the greenback against six major peers, climbing over 104,70 this morning ahead of a reading on the PCE-Personal Consumption Expenditures index – the Fed’s preferred inflation gauge.

The PCE price index is a wide indicator of the average increase in prices for all domestic personal consumption and is widely expected to reiterate that U.S. inflation remained elevated in January.

Investors have increased their worries about more interest rate hikes by the Federal Reserve in recent weeks, following some stronger-than-expected U.S. macroeconomics, labor, and inflation readings, which are signs of resilience in the world’s largest economy.

The fundamentals are now favoring the dollar against the euro as investors braced for U.S. interest rates to be higher for longer, with the DXY-U.S. dollar index, which tracks the value of the greenback against six major peers, climbing over 104,70 this morning ahead of a reading on the PCE-Personal Consumption Expenditures index – the Fed’s preferred inflation gauge.

The PCE price index is a wide indicator of the average increase in prices for all domestic personal consumption and is widely expected to reiterate that U.S. inflation remained elevated in January.

Investors have increased their worries about more interest rate hikes by the Federal Reserve in recent weeks, following some stronger-than-expected U.S. macroeconomics, labor, and inflation readings, which are signs of resilience in the world’s largest economy.

The fundamentals are now favoring the dollar against the euro as investors braced for U.S. interest rates to be higher for longer, with the DXY-U.S. dollar index, which tracks the value of the greenback against six major peers, climbing over 104,70 this morning ahead of a reading on the PCE-Personal Consumption Expenditures index – the Fed’s preferred inflation gauge.

The PCE price index is a wide indicator of the average increase in prices for all domestic personal consumption and is widely expected to reiterate that U.S. inflation remained elevated in January.

Euro’s retracement from early February’s highs of $1,10 to the current lows is part of a broader rebalancing in the forex market in favor of the U.S. dollar against major G10 growth-sensitive currencies such as the Euro, Pound Sterling, and the Australian dollar as the market sentiment remains fragile amid fears of a more hawkish Federal Reserve to curb inflation.

Investors have increased their worries about more interest rate hikes by the Federal Reserve in recent weeks, following some stronger-than-expected U.S. macroeconomics, labor, and inflation readings, which are signs of resilience in the world’s largest economy.

The fundamentals are now favoring the dollar against the euro as investors braced for U.S. interest rates to be higher for longer, with the DXY-U.S. dollar index, which tracks the value of the greenback against six major peers, climbing over 104,70 this morning ahead of a reading on the PCE-Personal Consumption Expenditures index – the Fed’s preferred inflation gauge.

The PCE price index is a wide indicator of the average increase in prices for all domestic personal consumption and is widely expected to reiterate that U.S. inflation remained elevated in January.

Euro’s retracement from early February’s highs of $1,10 to the current lows is part of a broader rebalancing in the forex market in favor of the U.S. dollar against major G10 growth-sensitive currencies such as the Euro, Pound Sterling, and the Australian dollar as the market sentiment remains fragile amid fears of a more hawkish Federal Reserve to curb inflation.

Investors have increased their worries about more interest rate hikes by the Federal Reserve in recent weeks, following some stronger-than-expected U.S. macroeconomics, labor, and inflation readings, which are signs of resilience in the world’s largest economy.

The fundamentals are now favoring the dollar against the euro as investors braced for U.S. interest rates to be higher for longer, with the DXY-U.S. dollar index, which tracks the value of the greenback against six major peers, climbing over 104,70 this morning ahead of a reading on the PCE-Personal Consumption Expenditures index – the Fed’s preferred inflation gauge.

The PCE price index is a wide indicator of the average increase in prices for all domestic personal consumption and is widely expected to reiterate that U.S. inflation remained elevated in January.

A lower-than-expected German Q4 GDP is a negative/bearish catalyst for the common currency, especially on a day like this today, which completed a year since Russia’s invasion of Ukraine, which tanked the EU economy.

Euro’s retracement from early February’s highs of $1,10 to the current lows is part of a broader rebalancing in the forex market in favor of the U.S. dollar against major G10 growth-sensitive currencies such as the Euro, Pound Sterling, and the Australian dollar as the market sentiment remains fragile amid fears of a more hawkish Federal Reserve to curb inflation.

Investors have increased their worries about more interest rate hikes by the Federal Reserve in recent weeks, following some stronger-than-expected U.S. macroeconomics, labor, and inflation readings, which are signs of resilience in the world’s largest economy.

The fundamentals are now favoring the dollar against the euro as investors braced for U.S. interest rates to be higher for longer, with the DXY-U.S. dollar index, which tracks the value of the greenback against six major peers, climbing over 104,70 this morning ahead of a reading on the PCE-Personal Consumption Expenditures index – the Fed’s preferred inflation gauge.

The PCE price index is a wide indicator of the average increase in prices for all domestic personal consumption and is widely expected to reiterate that U.S. inflation remained elevated in January.

A lower-than-expected German Q4 GDP is a negative/bearish catalyst for the common currency, especially on a day like this today, which completed a year since Russia’s invasion of Ukraine, which tanked the EU economy.

Euro’s retracement from early February’s highs of $1,10 to the current lows is part of a broader rebalancing in the forex market in favor of the U.S. dollar against major G10 growth-sensitive currencies such as the Euro, Pound Sterling, and the Australian dollar as the market sentiment remains fragile amid fears of a more hawkish Federal Reserve to curb inflation.

Investors have increased their worries about more interest rate hikes by the Federal Reserve in recent weeks, following some stronger-than-expected U.S. macroeconomics, labor, and inflation readings, which are signs of resilience in the world’s largest economy.

The fundamentals are now favoring the dollar against the euro as investors braced for U.S. interest rates to be higher for longer, with the DXY-U.S. dollar index, which tracks the value of the greenback against six major peers, climbing over 104,70 this morning ahead of a reading on the PCE-Personal Consumption Expenditures index – the Fed’s preferred inflation gauge.

The PCE price index is a wide indicator of the average increase in prices for all domestic personal consumption and is widely expected to reiterate that U.S. inflation remained elevated in January.

EUR/USD pair, Daily chart

A lower-than-expected German Q4 GDP is a negative/bearish catalyst for the common currency, especially on a day like this today, which completed a year since Russia’s invasion of Ukraine, which tanked the EU economy.

Euro’s retracement from early February’s highs of $1,10 to the current lows is part of a broader rebalancing in the forex market in favor of the U.S. dollar against major G10 growth-sensitive currencies such as the Euro, Pound Sterling, and the Australian dollar as the market sentiment remains fragile amid fears of a more hawkish Federal Reserve to curb inflation.

Investors have increased their worries about more interest rate hikes by the Federal Reserve in recent weeks, following some stronger-than-expected U.S. macroeconomics, labor, and inflation readings, which are signs of resilience in the world’s largest economy.

The fundamentals are now favoring the dollar against the euro as investors braced for U.S. interest rates to be higher for longer, with the DXY-U.S. dollar index, which tracks the value of the greenback against six major peers, climbing over 104,70 this morning ahead of a reading on the PCE-Personal Consumption Expenditures index – the Fed’s preferred inflation gauge.

The PCE price index is a wide indicator of the average increase in prices for all domestic personal consumption and is widely expected to reiterate that U.S. inflation remained elevated in January.

EUR/USD pair, Daily chart

A lower-than-expected German Q4 GDP is a negative/bearish catalyst for the common currency, especially on a day like this today, which completed a year since Russia’s invasion of Ukraine, which tanked the EU economy.

Euro’s retracement from early February’s highs of $1,10 to the current lows is part of a broader rebalancing in the forex market in favor of the U.S. dollar against major G10 growth-sensitive currencies such as the Euro, Pound Sterling, and the Australian dollar as the market sentiment remains fragile amid fears of a more hawkish Federal Reserve to curb inflation.

Investors have increased their worries about more interest rate hikes by the Federal Reserve in recent weeks, following some stronger-than-expected U.S. macroeconomics, labor, and inflation readings, which are signs of resilience in the world’s largest economy.

The fundamentals are now favoring the dollar against the euro as investors braced for U.S. interest rates to be higher for longer, with the DXY-U.S. dollar index, which tracks the value of the greenback against six major peers, climbing over 104,70 this morning ahead of a reading on the PCE-Personal Consumption Expenditures index – the Fed’s preferred inflation gauge.

The PCE price index is a wide indicator of the average increase in prices for all domestic personal consumption and is widely expected to reiterate that U.S. inflation remained elevated in January.

EUR/USD pair, Daily chart

A lower-than-expected German Q4 GDP is a negative/bearish catalyst for the common currency, especially on a day like this today, which completed a year since Russia’s invasion of Ukraine, which tanked the EU economy.

Euro’s retracement from early February’s highs of $1,10 to the current lows is part of a broader rebalancing in the forex market in favor of the U.S. dollar against major G10 growth-sensitive currencies such as the Euro, Pound Sterling, and the Australian dollar as the market sentiment remains fragile amid fears of a more hawkish Federal Reserve to curb inflation.

Investors have increased their worries about more interest rate hikes by the Federal Reserve in recent weeks, following some stronger-than-expected U.S. macroeconomics, labor, and inflation readings, which are signs of resilience in the world’s largest economy.

The fundamentals are now favoring the dollar against the euro as investors braced for U.S. interest rates to be higher for longer, with the DXY-U.S. dollar index, which tracks the value of the greenback against six major peers, climbing over 104,70 this morning ahead of a reading on the PCE-Personal Consumption Expenditures index – the Fed’s preferred inflation gauge.

The PCE price index is a wide indicator of the average increase in prices for all domestic personal consumption and is widely expected to reiterate that U.S. inflation remained elevated in January.

EUR/USD pair hit a six-week low of $1,0580 this morning after data released Friday showed that Germany, the Eurozone’s largest economy contracted at the end of the year, shrinking by 0.4% vs expected -0.2% in the fourth quarter of 2022 compared with the previous three months.

EUR/USD pair, Daily chart

A lower-than-expected German Q4 GDP is a negative/bearish catalyst for the common currency, especially on a day like this today, which completed a year since Russia’s invasion of Ukraine, which tanked the EU economy.

Euro’s retracement from early February’s highs of $1,10 to the current lows is part of a broader rebalancing in the forex market in favor of the U.S. dollar against major G10 growth-sensitive currencies such as the Euro, Pound Sterling, and the Australian dollar as the market sentiment remains fragile amid fears of a more hawkish Federal Reserve to curb inflation.

Investors have increased their worries about more interest rate hikes by the Federal Reserve in recent weeks, following some stronger-than-expected U.S. macroeconomics, labor, and inflation readings, which are signs of resilience in the world’s largest economy.

The fundamentals are now favoring the dollar against the euro as investors braced for U.S. interest rates to be higher for longer, with the DXY-U.S. dollar index, which tracks the value of the greenback against six major peers, climbing over 104,70 this morning ahead of a reading on the PCE-Personal Consumption Expenditures index – the Fed’s preferred inflation gauge.

The PCE price index is a wide indicator of the average increase in prices for all domestic personal consumption and is widely expected to reiterate that U.S. inflation remained elevated in January.

EUR/USD pair hit a six-week low of $1,0580 this morning after data released Friday showed that Germany, the Eurozone’s largest economy contracted at the end of the year, shrinking by 0.4% vs expected -0.2% in the fourth quarter of 2022 compared with the previous three months.

EUR/USD pair, Daily chart

A lower-than-expected German Q4 GDP is a negative/bearish catalyst for the common currency, especially on a day like this today, which completed a year since Russia’s invasion of Ukraine, which tanked the EU economy.

Euro’s retracement from early February’s highs of $1,10 to the current lows is part of a broader rebalancing in the forex market in favor of the U.S. dollar against major G10 growth-sensitive currencies such as the Euro, Pound Sterling, and the Australian dollar as the market sentiment remains fragile amid fears of a more hawkish Federal Reserve to curb inflation.

Investors have increased their worries about more interest rate hikes by the Federal Reserve in recent weeks, following some stronger-than-expected U.S. macroeconomics, labor, and inflation readings, which are signs of resilience in the world’s largest economy.

The fundamentals are now favoring the dollar against the euro as investors braced for U.S. interest rates to be higher for longer, with the DXY-U.S. dollar index, which tracks the value of the greenback against six major peers, climbing over 104,70 this morning ahead of a reading on the PCE-Personal Consumption Expenditures index – the Fed’s preferred inflation gauge.

The PCE price index is a wide indicator of the average increase in prices for all domestic personal consumption and is widely expected to reiterate that U.S. inflation remained elevated in January.

The common currency extended recent losses by falling below the $1,06 key support level this morning, for the first time since the early days of the year, giving up some significant gains of the latest rally, as the prospect of higher interest rate hikes from the Federal Reserve is favoring the dollar against the euro.

EUR/USD pair hit a six-week low of $1,0580 this morning after data released Friday showed that Germany, the Eurozone’s largest economy contracted at the end of the year, shrinking by 0.4% vs expected -0.2% in the fourth quarter of 2022 compared with the previous three months.

EUR/USD pair, Daily chart

A lower-than-expected German Q4 GDP is a negative/bearish catalyst for the common currency, especially on a day like this today, which completed a year since Russia’s invasion of Ukraine, which tanked the EU economy.

Euro’s retracement from early February’s highs of $1,10 to the current lows is part of a broader rebalancing in the forex market in favor of the U.S. dollar against major G10 growth-sensitive currencies such as the Euro, Pound Sterling, and the Australian dollar as the market sentiment remains fragile amid fears of a more hawkish Federal Reserve to curb inflation.

Investors have increased their worries about more interest rate hikes by the Federal Reserve in recent weeks, following some stronger-than-expected U.S. macroeconomics, labor, and inflation readings, which are signs of resilience in the world’s largest economy.

The fundamentals are now favoring the dollar against the euro as investors braced for U.S. interest rates to be higher for longer, with the DXY-U.S. dollar index, which tracks the value of the greenback against six major peers, climbing over 104,70 this morning ahead of a reading on the PCE-Personal Consumption Expenditures index – the Fed’s preferred inflation gauge.

The PCE price index is a wide indicator of the average increase in prices for all domestic personal consumption and is widely expected to reiterate that U.S. inflation remained elevated in January.

U.S. stocks tumble 2% ahead of latest Fed minutes

Posted on by Vrasidas Neofytou

As a result, the U.S. dollar extended recent gains to above the 104,20 level, pressuring Euro to below the $1,0650 mark, the risk-sensitive Australian dollar fell as low as $0,6820, while Bitcoin retreated from recent highs toward the $24,000 key support level.

As a result, the U.S. dollar extended recent gains to above the 104,20 level, pressuring Euro to below the $1,0650 mark, the risk-sensitive Australian dollar fell as low as $0,6820, while Bitcoin retreated from recent highs toward the $24,000 key support level.

The largely expected Fed’s hawkish rhetoric has helped bond yields to reach the highest levels in three months, with the 2-year rate, which is the most sensitive to Fed policy changes hitting a high of 4.73%, while the yield on the 10-year Treasury notes climbed to 3,96%.

As a result, the U.S. dollar extended recent gains to above the 104,20 level, pressuring Euro to below the $1,0650 mark, the risk-sensitive Australian dollar fell as low as $0,6820, while Bitcoin retreated from recent highs toward the $24,000 key support level.

The largely expected Fed’s hawkish rhetoric has helped bond yields to reach the highest levels in three months, with the 2-year rate, which is the most sensitive to Fed policy changes hitting a high of 4.73%, while the yield on the 10-year Treasury notes climbed to 3,96%.

As a result, the U.S. dollar extended recent gains to above the 104,20 level, pressuring Euro to below the $1,0650 mark, the risk-sensitive Australian dollar fell as low as $0,6820, while Bitcoin retreated from recent highs toward the $24,000 key support level.

Money market participants have been revising upwards where they see the Fed fund rates peaking – currently at 5.35% in July and staying near those levels throughout the year.

The largely expected Fed’s hawkish rhetoric has helped bond yields to reach the highest levels in three months, with the 2-year rate, which is the most sensitive to Fed policy changes hitting a high of 4.73%, while the yield on the 10-year Treasury notes climbed to 3,96%.

As a result, the U.S. dollar extended recent gains to above the 104,20 level, pressuring Euro to below the $1,0650 mark, the risk-sensitive Australian dollar fell as low as $0,6820, while Bitcoin retreated from recent highs toward the $24,000 key support level.

Money market participants have been revising upwards where they see the Fed fund rates peaking – currently at 5.35% in July and staying near those levels throughout the year.

The largely expected Fed’s hawkish rhetoric has helped bond yields to reach the highest levels in three months, with the 2-year rate, which is the most sensitive to Fed policy changes hitting a high of 4.73%, while the yield on the 10-year Treasury notes climbed to 3,96%.

As a result, the U.S. dollar extended recent gains to above the 104,20 level, pressuring Euro to below the $1,0650 mark, the risk-sensitive Australian dollar fell as low as $0,6820, while Bitcoin retreated from recent highs toward the $24,000 key support level.

With the U.S. economy and labour force being more resilient on surging rates and geopolitical risks than expected, and with inflation still far from the Fed’s 2% target, the dovish pivot by Fed is fading.

Money market participants have been revising upwards where they see the Fed fund rates peaking – currently at 5.35% in July and staying near those levels throughout the year.

The largely expected Fed’s hawkish rhetoric has helped bond yields to reach the highest levels in three months, with the 2-year rate, which is the most sensitive to Fed policy changes hitting a high of 4.73%, while the yield on the 10-year Treasury notes climbed to 3,96%.

As a result, the U.S. dollar extended recent gains to above the 104,20 level, pressuring Euro to below the $1,0650 mark, the risk-sensitive Australian dollar fell as low as $0,6820, while Bitcoin retreated from recent highs toward the $24,000 key support level.

With the U.S. economy and labour force being more resilient on surging rates and geopolitical risks than expected, and with inflation still far from the Fed’s 2% target, the dovish pivot by Fed is fading.

Money market participants have been revising upwards where they see the Fed fund rates peaking – currently at 5.35% in July and staying near those levels throughout the year.

The largely expected Fed’s hawkish rhetoric has helped bond yields to reach the highest levels in three months, with the 2-year rate, which is the most sensitive to Fed policy changes hitting a high of 4.73%, while the yield on the 10-year Treasury notes climbed to 3,96%.

As a result, the U.S. dollar extended recent gains to above the 104,20 level, pressuring Euro to below the $1,0650 mark, the risk-sensitive Australian dollar fell as low as $0,6820, while Bitcoin retreated from recent highs toward the $24,000 key support level.

All eyes will be on the release of the minutes from the last Fed policy meeting, due out on Wednesday, as investors look for more insight into the central bank’s rate-hiking agenda.

With the U.S. economy and labour force being more resilient on surging rates and geopolitical risks than expected, and with inflation still far from the Fed’s 2% target, the dovish pivot by Fed is fading.

Money market participants have been revising upwards where they see the Fed fund rates peaking – currently at 5.35% in July and staying near those levels throughout the year.

The largely expected Fed’s hawkish rhetoric has helped bond yields to reach the highest levels in three months, with the 2-year rate, which is the most sensitive to Fed policy changes hitting a high of 4.73%, while the yield on the 10-year Treasury notes climbed to 3,96%.

As a result, the U.S. dollar extended recent gains to above the 104,20 level, pressuring Euro to below the $1,0650 mark, the risk-sensitive Australian dollar fell as low as $0,6820, while Bitcoin retreated from recent highs toward the $24,000 key support level.

All eyes will be on the release of the minutes from the last Fed policy meeting, due out on Wednesday, as investors look for more insight into the central bank’s rate-hiking agenda.

With the U.S. economy and labour force being more resilient on surging rates and geopolitical risks than expected, and with inflation still far from the Fed’s 2% target, the dovish pivot by Fed is fading.

Money market participants have been revising upwards where they see the Fed fund rates peaking – currently at 5.35% in July and staying near those levels throughout the year.

The largely expected Fed’s hawkish rhetoric has helped bond yields to reach the highest levels in three months, with the 2-year rate, which is the most sensitive to Fed policy changes hitting a high of 4.73%, while the yield on the 10-year Treasury notes climbed to 3,96%.

As a result, the U.S. dollar extended recent gains to above the 104,20 level, pressuring Euro to below the $1,0650 mark, the risk-sensitive Australian dollar fell as low as $0,6820, while Bitcoin retreated from recent highs toward the $24,000 key support level.

Dow Jones index, Daily chart

All eyes will be on the release of the minutes from the last Fed policy meeting, due out on Wednesday, as investors look for more insight into the central bank’s rate-hiking agenda.

With the U.S. economy and labour force being more resilient on surging rates and geopolitical risks than expected, and with inflation still far from the Fed’s 2% target, the dovish pivot by Fed is fading.

Money market participants have been revising upwards where they see the Fed fund rates peaking – currently at 5.35% in July and staying near those levels throughout the year.

The largely expected Fed’s hawkish rhetoric has helped bond yields to reach the highest levels in three months, with the 2-year rate, which is the most sensitive to Fed policy changes hitting a high of 4.73%, while the yield on the 10-year Treasury notes climbed to 3,96%.

As a result, the U.S. dollar extended recent gains to above the 104,20 level, pressuring Euro to below the $1,0650 mark, the risk-sensitive Australian dollar fell as low as $0,6820, while Bitcoin retreated from recent highs toward the $24,000 key support level.

Dow Jones index, Daily chart

All eyes will be on the release of the minutes from the last Fed policy meeting, due out on Wednesday, as investors look for more insight into the central bank’s rate-hiking agenda.

With the U.S. economy and labour force being more resilient on surging rates and geopolitical risks than expected, and with inflation still far from the Fed’s 2% target, the dovish pivot by Fed is fading.

Money market participants have been revising upwards where they see the Fed fund rates peaking – currently at 5.35% in July and staying near those levels throughout the year.

The largely expected Fed’s hawkish rhetoric has helped bond yields to reach the highest levels in three months, with the 2-year rate, which is the most sensitive to Fed policy changes hitting a high of 4.73%, while the yield on the 10-year Treasury notes climbed to 3,96%.

As a result, the U.S. dollar extended recent gains to above the 104,20 level, pressuring Euro to below the $1,0650 mark, the risk-sensitive Australian dollar fell as low as $0,6820, while Bitcoin retreated from recent highs toward the $24,000 key support level.

Dow Jones index, Daily chart

All eyes will be on the release of the minutes from the last Fed policy meeting, due out on Wednesday, as investors look for more insight into the central bank’s rate-hiking agenda.

With the U.S. economy and labour force being more resilient on surging rates and geopolitical risks than expected, and with inflation still far from the Fed’s 2% target, the dovish pivot by Fed is fading.

Money market participants have been revising upwards where they see the Fed fund rates peaking – currently at 5.35% in July and staying near those levels throughout the year.

The largely expected Fed’s hawkish rhetoric has helped bond yields to reach the highest levels in three months, with the 2-year rate, which is the most sensitive to Fed policy changes hitting a high of 4.73%, while the yield on the 10-year Treasury notes climbed to 3,96%.

As a result, the U.S. dollar extended recent gains to above the 104,20 level, pressuring Euro to below the $1,0650 mark, the risk-sensitive Australian dollar fell as low as $0,6820, while Bitcoin retreated from recent highs toward the $24,000 key support level.

Dow Jones posted its worst downturn since Dec. 15 when it fell 2.3%, as all sectors ended lower, with consumer discretionary stocks seeing the largest decline of 3.3%.

Dow Jones index, Daily chart

All eyes will be on the release of the minutes from the last Fed policy meeting, due out on Wednesday, as investors look for more insight into the central bank’s rate-hiking agenda.

With the U.S. economy and labour force being more resilient on surging rates and geopolitical risks than expected, and with inflation still far from the Fed’s 2% target, the dovish pivot by Fed is fading.

Money market participants have been revising upwards where they see the Fed fund rates peaking – currently at 5.35% in July and staying near those levels throughout the year.

The largely expected Fed’s hawkish rhetoric has helped bond yields to reach the highest levels in three months, with the 2-year rate, which is the most sensitive to Fed policy changes hitting a high of 4.73%, while the yield on the 10-year Treasury notes climbed to 3,96%.

As a result, the U.S. dollar extended recent gains to above the 104,20 level, pressuring Euro to below the $1,0650 mark, the risk-sensitive Australian dollar fell as low as $0,6820, while Bitcoin retreated from recent highs toward the $24,000 key support level.

Dow Jones posted its worst downturn since Dec. 15 when it fell 2.3%, as all sectors ended lower, with consumer discretionary stocks seeing the largest decline of 3.3%.

Dow Jones index, Daily chart

All eyes will be on the release of the minutes from the last Fed policy meeting, due out on Wednesday, as investors look for more insight into the central bank’s rate-hiking agenda.

With the U.S. economy and labour force being more resilient on surging rates and geopolitical risks than expected, and with inflation still far from the Fed’s 2% target, the dovish pivot by Fed is fading.

Money market participants have been revising upwards where they see the Fed fund rates peaking – currently at 5.35% in July and staying near those levels throughout the year.

The largely expected Fed’s hawkish rhetoric has helped bond yields to reach the highest levels in three months, with the 2-year rate, which is the most sensitive to Fed policy changes hitting a high of 4.73%, while the yield on the 10-year Treasury notes climbed to 3,96%.

As a result, the U.S. dollar extended recent gains to above the 104,20 level, pressuring Euro to below the $1,0650 mark, the risk-sensitive Australian dollar fell as low as $0,6820, while Bitcoin retreated from recent highs toward the $24,000 key support level.

Wall Street posted its worst performance of the year so far on Tuesday, with the tech-heavy Nasdaq Composite leading losses by 2.50%, and settling at 11,492, while the Dow Jones and S&P 500 indices tumbled nearly 2%, to close at 33,129 and 3,997 respectively, as the prospect for higher rates continues to pressure market risk sentiment.

Dow Jones posted its worst downturn since Dec. 15 when it fell 2.3%, as all sectors ended lower, with consumer discretionary stocks seeing the largest decline of 3.3%.

Dow Jones index, Daily chart

All eyes will be on the release of the minutes from the last Fed policy meeting, due out on Wednesday, as investors look for more insight into the central bank’s rate-hiking agenda.

With the U.S. economy and labour force being more resilient on surging rates and geopolitical risks than expected, and with inflation still far from the Fed’s 2% target, the dovish pivot by Fed is fading.

Money market participants have been revising upwards where they see the Fed fund rates peaking – currently at 5.35% in July and staying near those levels throughout the year.

The largely expected Fed’s hawkish rhetoric has helped bond yields to reach the highest levels in three months, with the 2-year rate, which is the most sensitive to Fed policy changes hitting a high of 4.73%, while the yield on the 10-year Treasury notes climbed to 3,96%.

As a result, the U.S. dollar extended recent gains to above the 104,20 level, pressuring Euro to below the $1,0650 mark, the risk-sensitive Australian dollar fell as low as $0,6820, while Bitcoin retreated from recent highs toward the $24,000 key support level.

Wall Street posted its worst performance of the year so far on Tuesday, with the tech-heavy Nasdaq Composite leading losses by 2.50%, and settling at 11,492, while the Dow Jones and S&P 500 indices tumbled nearly 2%, to close at 33,129 and 3,997 respectively, as the prospect for higher rates continues to pressure market risk sentiment.

Dow Jones posted its worst downturn since Dec. 15 when it fell 2.3%, as all sectors ended lower, with consumer discretionary stocks seeing the largest decline of 3.3%.

Dow Jones index, Daily chart

All eyes will be on the release of the minutes from the last Fed policy meeting, due out on Wednesday, as investors look for more insight into the central bank’s rate-hiking agenda.

With the U.S. economy and labour force being more resilient on surging rates and geopolitical risks than expected, and with inflation still far from the Fed’s 2% target, the dovish pivot by Fed is fading.

Money market participants have been revising upwards where they see the Fed fund rates peaking – currently at 5.35% in July and staying near those levels throughout the year.

The largely expected Fed’s hawkish rhetoric has helped bond yields to reach the highest levels in three months, with the 2-year rate, which is the most sensitive to Fed policy changes hitting a high of 4.73%, while the yield on the 10-year Treasury notes climbed to 3,96%.

As a result, the U.S. dollar extended recent gains to above the 104,20 level, pressuring Euro to below the $1,0650 mark, the risk-sensitive Australian dollar fell as low as $0,6820, while Bitcoin retreated from recent highs toward the $24,000 key support level.

Economists and market participants worry that Federal Reserve will support more interest rate hikes than initially expected to curb 40-year record-high inflation, deteriorating the appetite for risk assets such as stocks, commodities, cryptocurrencies, and growth-sensitive currencies in favour of dollar and bond yields.

Wall Street posted its worst performance of the year so far on Tuesday, with the tech-heavy Nasdaq Composite leading losses by 2.50%, and settling at 11,492, while the Dow Jones and S&P 500 indices tumbled nearly 2%, to close at 33,129 and 3,997 respectively, as the prospect for higher rates continues to pressure market risk sentiment.

Dow Jones posted its worst downturn since Dec. 15 when it fell 2.3%, as all sectors ended lower, with consumer discretionary stocks seeing the largest decline of 3.3%.

Dow Jones index, Daily chart

All eyes will be on the release of the minutes from the last Fed policy meeting, due out on Wednesday, as investors look for more insight into the central bank’s rate-hiking agenda.

With the U.S. economy and labour force being more resilient on surging rates and geopolitical risks than expected, and with inflation still far from the Fed’s 2% target, the dovish pivot by Fed is fading.

Money market participants have been revising upwards where they see the Fed fund rates peaking – currently at 5.35% in July and staying near those levels throughout the year.

The largely expected Fed’s hawkish rhetoric has helped bond yields to reach the highest levels in three months, with the 2-year rate, which is the most sensitive to Fed policy changes hitting a high of 4.73%, while the yield on the 10-year Treasury notes climbed to 3,96%.

As a result, the U.S. dollar extended recent gains to above the 104,20 level, pressuring Euro to below the $1,0650 mark, the risk-sensitive Australian dollar fell as low as $0,6820, while Bitcoin retreated from recent highs toward the $24,000 key support level.

Economists and market participants worry that Federal Reserve will support more interest rate hikes than initially expected to curb 40-year record-high inflation, deteriorating the appetite for risk assets such as stocks, commodities, cryptocurrencies, and growth-sensitive currencies in favour of dollar and bond yields.

Wall Street posted its worst performance of the year so far on Tuesday, with the tech-heavy Nasdaq Composite leading losses by 2.50%, and settling at 11,492, while the Dow Jones and S&P 500 indices tumbled nearly 2%, to close at 33,129 and 3,997 respectively, as the prospect for higher rates continues to pressure market risk sentiment.

Dow Jones posted its worst downturn since Dec. 15 when it fell 2.3%, as all sectors ended lower, with consumer discretionary stocks seeing the largest decline of 3.3%.

Dow Jones index, Daily chart

All eyes will be on the release of the minutes from the last Fed policy meeting, due out on Wednesday, as investors look for more insight into the central bank’s rate-hiking agenda.

With the U.S. economy and labour force being more resilient on surging rates and geopolitical risks than expected, and with inflation still far from the Fed’s 2% target, the dovish pivot by Fed is fading.

Money market participants have been revising upwards where they see the Fed fund rates peaking – currently at 5.35% in July and staying near those levels throughout the year.

The largely expected Fed’s hawkish rhetoric has helped bond yields to reach the highest levels in three months, with the 2-year rate, which is the most sensitive to Fed policy changes hitting a high of 4.73%, while the yield on the 10-year Treasury notes climbed to 3,96%.

As a result, the U.S. dollar extended recent gains to above the 104,20 level, pressuring Euro to below the $1,0650 mark, the risk-sensitive Australian dollar fell as low as $0,6820, while Bitcoin retreated from recent highs toward the $24,000 key support level.

U.S. stock indices dropped over 2% on Tuesday, having their worst day of the year so far amid growing worries the Federal Reserve will keep interest rates higher for longer than previously thought, while investors await the minutes from the U.S. Federal Reserve’s latest monetary policy meeting later today.

Economists and market participants worry that Federal Reserve will support more interest rate hikes than initially expected to curb 40-year record-high inflation, deteriorating the appetite for risk assets such as stocks, commodities, cryptocurrencies, and growth-sensitive currencies in favour of dollar and bond yields.

Wall Street posted its worst performance of the year so far on Tuesday, with the tech-heavy Nasdaq Composite leading losses by 2.50%, and settling at 11,492, while the Dow Jones and S&P 500 indices tumbled nearly 2%, to close at 33,129 and 3,997 respectively, as the prospect for higher rates continues to pressure market risk sentiment.

Dow Jones posted its worst downturn since Dec. 15 when it fell 2.3%, as all sectors ended lower, with consumer discretionary stocks seeing the largest decline of 3.3%.

Dow Jones index, Daily chart

All eyes will be on the release of the minutes from the last Fed policy meeting, due out on Wednesday, as investors look for more insight into the central bank’s rate-hiking agenda.

With the U.S. economy and labour force being more resilient on surging rates and geopolitical risks than expected, and with inflation still far from the Fed’s 2% target, the dovish pivot by Fed is fading.

Money market participants have been revising upwards where they see the Fed fund rates peaking – currently at 5.35% in July and staying near those levels throughout the year.

The largely expected Fed’s hawkish rhetoric has helped bond yields to reach the highest levels in three months, with the 2-year rate, which is the most sensitive to Fed policy changes hitting a high of 4.73%, while the yield on the 10-year Treasury notes climbed to 3,96%.

As a result, the U.S. dollar extended recent gains to above the 104,20 level, pressuring Euro to below the $1,0650 mark, the risk-sensitive Australian dollar fell as low as $0,6820, while Bitcoin retreated from recent highs toward the $24,000 key support level.

Copper extends gains to $4,20/lb on supply disruptions and China’s reopening

Posted on by Vrasidas Neofytou

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

The industrial metal was under pressure during the second quarter of 2022 amid concerns over the global economic outlook, especially in top consumer China.

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

The industrial metal was under pressure during the second quarter of 2022 amid concerns over the global economic outlook, especially in top consumer China.

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

Optimism over a Chinese economic recovery surged on Monday after the People’s Bank held its benchmark mortgage rates at historical lows. While the move was largely expected, it signaled that the government intends to keep policy accommodative to shore up economic growth.

The industrial metal was under pressure during the second quarter of 2022 amid concerns over the global economic outlook, especially in top consumer China.

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

Optimism over a Chinese economic recovery surged on Monday after the People’s Bank held its benchmark mortgage rates at historical lows. While the move was largely expected, it signaled that the government intends to keep policy accommodative to shore up economic growth.

The industrial metal was under pressure during the second quarter of 2022 amid concerns over the global economic outlook, especially in top consumer China.

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

Copper prices have been getting bullish bets amid continued confidence over an economic recovery in China, as the world’s second-largest economy and top copper consumer reopens and looks to revive its debt-laden property sector.

Optimism over a Chinese economic recovery surged on Monday after the People’s Bank held its benchmark mortgage rates at historical lows. While the move was largely expected, it signaled that the government intends to keep policy accommodative to shore up economic growth.

The industrial metal was under pressure during the second quarter of 2022 amid concerns over the global economic outlook, especially in top consumer China.

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

Copper prices have been getting bullish bets amid continued confidence over an economic recovery in China, as the world’s second-largest economy and top copper consumer reopens and looks to revive its debt-laden property sector.

Optimism over a Chinese economic recovery surged on Monday after the People’s Bank held its benchmark mortgage rates at historical lows. While the move was largely expected, it signaled that the government intends to keep policy accommodative to shore up economic growth.

The industrial metal was under pressure during the second quarter of 2022 amid concerns over the global economic outlook, especially in top consumer China.

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

China’s reopening supports copper rally:

Copper prices have been getting bullish bets amid continued confidence over an economic recovery in China, as the world’s second-largest economy and top copper consumer reopens and looks to revive its debt-laden property sector.

Optimism over a Chinese economic recovery surged on Monday after the People’s Bank held its benchmark mortgage rates at historical lows. While the move was largely expected, it signaled that the government intends to keep policy accommodative to shore up economic growth.

The industrial metal was under pressure during the second quarter of 2022 amid concerns over the global economic outlook, especially in top consumer China.

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

China’s reopening supports copper rally:

Copper prices have been getting bullish bets amid continued confidence over an economic recovery in China, as the world’s second-largest economy and top copper consumer reopens and looks to revive its debt-laden property sector.

Optimism over a Chinese economic recovery surged on Monday after the People’s Bank held its benchmark mortgage rates at historical lows. While the move was largely expected, it signaled that the government intends to keep policy accommodative to shore up economic growth.

The industrial metal was under pressure during the second quarter of 2022 amid concerns over the global economic outlook, especially in top consumer China.

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

Hence, the aggressive global interest rate hikes from last year, the record-high inflation and continued labour market tightness have slowed copper production across the developing world, especially in main producing countries such as Chile and Peru.

China’s reopening supports copper rally:

Copper prices have been getting bullish bets amid continued confidence over an economic recovery in China, as the world’s second-largest economy and top copper consumer reopens and looks to revive its debt-laden property sector.

Optimism over a Chinese economic recovery surged on Monday after the People’s Bank held its benchmark mortgage rates at historical lows. While the move was largely expected, it signaled that the government intends to keep policy accommodative to shore up economic growth.

The industrial metal was under pressure during the second quarter of 2022 amid concerns over the global economic outlook, especially in top consumer China.

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

Hence, the aggressive global interest rate hikes from last year, the record-high inflation and continued labour market tightness have slowed copper production across the developing world, especially in main producing countries such as Chile and Peru.

China’s reopening supports copper rally:

Copper prices have been getting bullish bets amid continued confidence over an economic recovery in China, as the world’s second-largest economy and top copper consumer reopens and looks to revive its debt-laden property sector.

Optimism over a Chinese economic recovery surged on Monday after the People’s Bank held its benchmark mortgage rates at historical lows. While the move was largely expected, it signaled that the government intends to keep policy accommodative to shore up economic growth.

The industrial metal was under pressure during the second quarter of 2022 amid concerns over the global economic outlook, especially in top consumer China.

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

On top of that, BHP’s giant Escondida copper mine was hit by road blockades in Chile that disrupted mining supply deliveries in 2022.

Hence, the aggressive global interest rate hikes from last year, the record-high inflation and continued labour market tightness have slowed copper production across the developing world, especially in main producing countries such as Chile and Peru.

China’s reopening supports copper rally:

Copper prices have been getting bullish bets amid continued confidence over an economic recovery in China, as the world’s second-largest economy and top copper consumer reopens and looks to revive its debt-laden property sector.

Optimism over a Chinese economic recovery surged on Monday after the People’s Bank held its benchmark mortgage rates at historical lows. While the move was largely expected, it signaled that the government intends to keep policy accommodative to shore up economic growth.

The industrial metal was under pressure during the second quarter of 2022 amid concerns over the global economic outlook, especially in top consumer China.

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

On top of that, BHP’s giant Escondida copper mine was hit by road blockades in Chile that disrupted mining supply deliveries in 2022.

Hence, the aggressive global interest rate hikes from last year, the record-high inflation and continued labour market tightness have slowed copper production across the developing world, especially in main producing countries such as Chile and Peru.

China’s reopening supports copper rally:

Copper prices have been getting bullish bets amid continued confidence over an economic recovery in China, as the world’s second-largest economy and top copper consumer reopens and looks to revive its debt-laden property sector.

Optimism over a Chinese economic recovery surged on Monday after the People’s Bank held its benchmark mortgage rates at historical lows. While the move was largely expected, it signaled that the government intends to keep policy accommodative to shore up economic growth.

The industrial metal was under pressure during the second quarter of 2022 amid concerns over the global economic outlook, especially in top consumer China.

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

Copper, Daily chart

On top of that, BHP’s giant Escondida copper mine was hit by road blockades in Chile that disrupted mining supply deliveries in 2022.

Hence, the aggressive global interest rate hikes from last year, the record-high inflation and continued labour market tightness have slowed copper production across the developing world, especially in main producing countries such as Chile and Peru.

China’s reopening supports copper rally:

Copper prices have been getting bullish bets amid continued confidence over an economic recovery in China, as the world’s second-largest economy and top copper consumer reopens and looks to revive its debt-laden property sector.

Optimism over a Chinese economic recovery surged on Monday after the People’s Bank held its benchmark mortgage rates at historical lows. While the move was largely expected, it signaled that the government intends to keep policy accommodative to shore up economic growth.

The industrial metal was under pressure during the second quarter of 2022 amid concerns over the global economic outlook, especially in top consumer China.

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

Copper, Daily chart

On top of that, BHP’s giant Escondida copper mine was hit by road blockades in Chile that disrupted mining supply deliveries in 2022.

Hence, the aggressive global interest rate hikes from last year, the record-high inflation and continued labour market tightness have slowed copper production across the developing world, especially in main producing countries such as Chile and Peru.

China’s reopening supports copper rally:

Copper prices have been getting bullish bets amid continued confidence over an economic recovery in China, as the world’s second-largest economy and top copper consumer reopens and looks to revive its debt-laden property sector.

Optimism over a Chinese economic recovery surged on Monday after the People’s Bank held its benchmark mortgage rates at historical lows. While the move was largely expected, it signaled that the government intends to keep policy accommodative to shore up economic growth.

The industrial metal was under pressure during the second quarter of 2022 amid concerns over the global economic outlook, especially in top consumer China.

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

Copper, Daily chart

On top of that, BHP’s giant Escondida copper mine was hit by road blockades in Chile that disrupted mining supply deliveries in 2022.

Hence, the aggressive global interest rate hikes from last year, the record-high inflation and continued labour market tightness have slowed copper production across the developing world, especially in main producing countries such as Chile and Peru.

China’s reopening supports copper rally:

Copper prices have been getting bullish bets amid continued confidence over an economic recovery in China, as the world’s second-largest economy and top copper consumer reopens and looks to revive its debt-laden property sector.

Optimism over a Chinese economic recovery surged on Monday after the People’s Bank held its benchmark mortgage rates at historical lows. While the move was largely expected, it signaled that the government intends to keep policy accommodative to shore up economic growth.

The industrial metal was under pressure during the second quarter of 2022 amid concerns over the global economic outlook, especially in top consumer China.

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

The red metal hit a monthly high of $4,20/lb on Tuesday morning following the supply disruptions in Panama. A deepening dispute between the Panama government and foreign copper miners also threatened to suspend the country’s copper exports, which could limit supply and push up prices.

Copper, Daily chart

On top of that, BHP’s giant Escondida copper mine was hit by road blockades in Chile that disrupted mining supply deliveries in 2022.

Hence, the aggressive global interest rate hikes from last year, the record-high inflation and continued labour market tightness have slowed copper production across the developing world, especially in main producing countries such as Chile and Peru.

China’s reopening supports copper rally:

Copper prices have been getting bullish bets amid continued confidence over an economic recovery in China, as the world’s second-largest economy and top copper consumer reopens and looks to revive its debt-laden property sector.

Optimism over a Chinese economic recovery surged on Monday after the People’s Bank held its benchmark mortgage rates at historical lows. While the move was largely expected, it signaled that the government intends to keep policy accommodative to shore up economic growth.

The industrial metal was under pressure during the second quarter of 2022 amid concerns over the global economic outlook, especially in top consumer China.

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

The red metal hit a monthly high of $4,20/lb on Tuesday morning following the supply disruptions in Panama. A deepening dispute between the Panama government and foreign copper miners also threatened to suspend the country’s copper exports, which could limit supply and push up prices.

Copper, Daily chart

On top of that, BHP’s giant Escondida copper mine was hit by road blockades in Chile that disrupted mining supply deliveries in 2022.

Hence, the aggressive global interest rate hikes from last year, the record-high inflation and continued labour market tightness have slowed copper production across the developing world, especially in main producing countries such as Chile and Peru.

China’s reopening supports copper rally:

Copper prices have been getting bullish bets amid continued confidence over an economic recovery in China, as the world’s second-largest economy and top copper consumer reopens and looks to revive its debt-laden property sector.

Optimism over a Chinese economic recovery surged on Monday after the People’s Bank held its benchmark mortgage rates at historical lows. While the move was largely expected, it signaled that the government intends to keep policy accommodative to shore up economic growth.

The industrial metal was under pressure during the second quarter of 2022 amid concerns over the global economic outlook, especially in top consumer China.

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

Supply disruptions in Latin America:

The red metal hit a monthly high of $4,20/lb on Tuesday morning following the supply disruptions in Panama. A deepening dispute between the Panama government and foreign copper miners also threatened to suspend the country’s copper exports, which could limit supply and push up prices.

Copper, Daily chart

On top of that, BHP’s giant Escondida copper mine was hit by road blockades in Chile that disrupted mining supply deliveries in 2022.

Hence, the aggressive global interest rate hikes from last year, the record-high inflation and continued labour market tightness have slowed copper production across the developing world, especially in main producing countries such as Chile and Peru.

China’s reopening supports copper rally:

Copper prices have been getting bullish bets amid continued confidence over an economic recovery in China, as the world’s second-largest economy and top copper consumer reopens and looks to revive its debt-laden property sector.

Optimism over a Chinese economic recovery surged on Monday after the People’s Bank held its benchmark mortgage rates at historical lows. While the move was largely expected, it signaled that the government intends to keep policy accommodative to shore up economic growth.

The industrial metal was under pressure during the second quarter of 2022 amid concerns over the global economic outlook, especially in top consumer China.

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

Supply disruptions in Latin America:

The red metal hit a monthly high of $4,20/lb on Tuesday morning following the supply disruptions in Panama. A deepening dispute between the Panama government and foreign copper miners also threatened to suspend the country’s copper exports, which could limit supply and push up prices.

Copper, Daily chart

On top of that, BHP’s giant Escondida copper mine was hit by road blockades in Chile that disrupted mining supply deliveries in 2022.

Hence, the aggressive global interest rate hikes from last year, the record-high inflation and continued labour market tightness have slowed copper production across the developing world, especially in main producing countries such as Chile and Peru.

China’s reopening supports copper rally:

Copper prices have been getting bullish bets amid continued confidence over an economic recovery in China, as the world’s second-largest economy and top copper consumer reopens and looks to revive its debt-laden property sector.

Optimism over a Chinese economic recovery surged on Monday after the People’s Bank held its benchmark mortgage rates at historical lows. While the move was largely expected, it signaled that the government intends to keep policy accommodative to shore up economic growth.

The industrial metal was under pressure during the second quarter of 2022 amid concerns over the global economic outlook, especially in top consumer China.

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

The industrial metal has been in an upward momentum in recent weeks, outpacing metal markets amid supply disruptions in Panama coupled with optimism over a potential recovery in major importer China despite the ongoing concerns over the global economic outlook and surging interest rates.

Supply disruptions in Latin America:

The red metal hit a monthly high of $4,20/lb on Tuesday morning following the supply disruptions in Panama. A deepening dispute between the Panama government and foreign copper miners also threatened to suspend the country’s copper exports, which could limit supply and push up prices.

Copper, Daily chart

On top of that, BHP’s giant Escondida copper mine was hit by road blockades in Chile that disrupted mining supply deliveries in 2022.

Hence, the aggressive global interest rate hikes from last year, the record-high inflation and continued labour market tightness have slowed copper production across the developing world, especially in main producing countries such as Chile and Peru.

China’s reopening supports copper rally:

Copper prices have been getting bullish bets amid continued confidence over an economic recovery in China, as the world’s second-largest economy and top copper consumer reopens and looks to revive its debt-laden property sector.

Optimism over a Chinese economic recovery surged on Monday after the People’s Bank held its benchmark mortgage rates at historical lows. While the move was largely expected, it signaled that the government intends to keep policy accommodative to shore up economic growth.

The industrial metal was under pressure during the second quarter of 2022 amid concerns over the global economic outlook, especially in top consumer China.

China’s strict zero-COVID-19 policy curtailed economic activity and dented demand over the past year, driving copper prices down to $3,70/lb at the mid-July 2022, before rebounding to the current levels after the government reopened the economy at the end of last year.

Crude oil fell 4% last week on the U.S. supply glut and on rate hike fears

Posted on by Vrasidas Neofytou

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

On top of that, the Biden administration also announced plans to release 26 million barrels of crude from the SPR-Strategic Petroleum Reserve which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

On top of that, the Biden administration also announced plans to release 26 million barrels of crude from the SPR-Strategic Petroleum Reserve which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Investors turned bearish last week after the United States reported higher-than-expected crude and gasoline inventories builds over the prior week.

On top of that, the Biden administration also announced plans to release 26 million barrels of crude from the SPR-Strategic Petroleum Reserve which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Investors turned bearish last week after the United States reported higher-than-expected crude and gasoline inventories builds over the prior week.

On top of that, the Biden administration also announced plans to release 26 million barrels of crude from the SPR-Strategic Petroleum Reserve which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

WTI crude oil, Weekly chart

Investors turned bearish last week after the United States reported higher-than-expected crude and gasoline inventories builds over the prior week.

On top of that, the Biden administration also announced plans to release 26 million barrels of crude from the SPR-Strategic Petroleum Reserve which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

WTI crude oil, Weekly chart

Investors turned bearish last week after the United States reported higher-than-expected crude and gasoline inventories builds over the prior week.

On top of that, the Biden administration also announced plans to release 26 million barrels of crude from the SPR-Strategic Petroleum Reserve which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

WTI crude oil, Weekly chart

Investors turned bearish last week after the United States reported higher-than-expected crude and gasoline inventories builds over the prior week.

On top of that, the Biden administration also announced plans to release 26 million barrels of crude from the SPR-Strategic Petroleum Reserve which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

U.S.-based WTI crude oil has fallen in three of the past four weeks, losing nearly 7% in that stretch, in response to a potential supply glut in the country following the inventory build, the SPR sales, and surging shale oil production.

WTI crude oil, Weekly chart

Investors turned bearish last week after the United States reported higher-than-expected crude and gasoline inventories builds over the prior week.

On top of that, the Biden administration also announced plans to release 26 million barrels of crude from the SPR-Strategic Petroleum Reserve which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

U.S.-based WTI crude oil has fallen in three of the past four weeks, losing nearly 7% in that stretch, in response to a potential supply glut in the country following the inventory build, the SPR sales, and surging shale oil production.

WTI crude oil, Weekly chart

Investors turned bearish last week after the United States reported higher-than-expected crude and gasoline inventories builds over the prior week.

On top of that, the Biden administration also announced plans to release 26 million barrels of crude from the SPR-Strategic Petroleum Reserve which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Brent and WTI crude oil prices closed lower by about 4% last week to $83/b and $76,50/b respectively, on concerns over a U. S oil supply glut, hawkish Fed commentary, and stronger dollar despite optimism over China’s fuel demand recovery, and Russian output cuts.

U.S.-based WTI crude oil has fallen in three of the past four weeks, losing nearly 7% in that stretch, in response to a potential supply glut in the country following the inventory build, the SPR sales, and surging shale oil production.

WTI crude oil, Weekly chart

Investors turned bearish last week after the United States reported higher-than-expected crude and gasoline inventories builds over the prior week.

On top of that, the Biden administration also announced plans to release 26 million barrels of crude from the SPR-Strategic Petroleum Reserve which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Gold and Silver sink to multi-week lows on higher rate expectations

Posted on by Vrasidas Neofytou

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Prices of the yellow metal were set to lose between 2% this week, their third straight week in the red, while the prices of the silver metal were set to lose nearly 4%, their fifth straight week in the red.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Prices of the yellow metal were set to lose between 2% this week, their third straight week in the red, while the prices of the silver metal were set to lose nearly 4%, their fifth straight week in the red.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Surging dollar and interest rates make the dollar-priced bullions more expensive for buyers with other currencies. At the same time, investors prefer the dollar instead of zero-yielding gold as a haven asset, given that the greenback offers better returns-yields.

Prices of the yellow metal were set to lose between 2% this week, their third straight week in the red, while the prices of the silver metal were set to lose nearly 4%, their fifth straight week in the red.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Surging dollar and interest rates make the dollar-priced bullions more expensive for buyers with other currencies. At the same time, investors prefer the dollar instead of zero-yielding gold as a haven asset, given that the greenback offers better returns-yields.

Prices of the yellow metal were set to lose between 2% this week, their third straight week in the red, while the prices of the silver metal were set to lose nearly 4%, their fifth straight week in the red.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Gold price, Daily chart

Surging dollar and interest rates make the dollar-priced bullions more expensive for buyers with other currencies. At the same time, investors prefer the dollar instead of zero-yielding gold as a haven asset, given that the greenback offers better returns-yields.

Prices of the yellow metal were set to lose between 2% this week, their third straight week in the red, while the prices of the silver metal were set to lose nearly 4%, their fifth straight week in the red.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Gold price, Daily chart

Surging dollar and interest rates make the dollar-priced bullions more expensive for buyers with other currencies. At the same time, investors prefer the dollar instead of zero-yielding gold as a haven asset, given that the greenback offers better returns-yields.

Prices of the yellow metal were set to lose between 2% this week, their third straight week in the red, while the prices of the silver metal were set to lose nearly 4%, their fifth straight week in the red.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Gold price, Daily chart

Surging dollar and interest rates make the dollar-priced bullions more expensive for buyers with other currencies. At the same time, investors prefer the dollar instead of zero-yielding gold as a haven asset, given that the greenback offers better returns-yields.

Prices of the yellow metal were set to lose between 2% this week, their third straight week in the red, while the prices of the silver metal were set to lose nearly 4%, their fifth straight week in the red.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

The dollar-denominated Gold fell as low as $1,820/oz, or nearly 1% down, on Friday morning, posting the lowest level since early 2023, while Silver extended recent losses toward a two-month low of $21,20/oz, or 1.50% down, as the DXY- dollar index rallied to a fresh monthly high of 104.50 mark.

Gold price, Daily chart

Surging dollar and interest rates make the dollar-priced bullions more expensive for buyers with other currencies. At the same time, investors prefer the dollar instead of zero-yielding gold as a haven asset, given that the greenback offers better returns-yields.

Prices of the yellow metal were set to lose between 2% this week, their third straight week in the red, while the prices of the silver metal were set to lose nearly 4%, their fifth straight week in the red.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

The dollar-denominated Gold fell as low as $1,820/oz, or nearly 1% down, on Friday morning, posting the lowest level since early 2023, while Silver extended recent losses toward a two-month low of $21,20/oz, or 1.50% down, as the DXY- dollar index rallied to a fresh monthly high of 104.50 mark.

Gold price, Daily chart

Surging dollar and interest rates make the dollar-priced bullions more expensive for buyers with other currencies. At the same time, investors prefer the dollar instead of zero-yielding gold as a haven asset, given that the greenback offers better returns-yields.

Prices of the yellow metal were set to lose between 2% this week, their third straight week in the red, while the prices of the silver metal were set to lose nearly 4%, their fifth straight week in the red.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Gold and Silver have been suffering declines this week as the persistently high inflation metrics, the hawkish comments by policymakers, and expectations for higher rate hikes have pushed bond yields and the greenback to yearly highs.

The dollar-denominated Gold fell as low as $1,820/oz, or nearly 1% down, on Friday morning, posting the lowest level since early 2023, while Silver extended recent losses toward a two-month low of $21,20/oz, or 1.50% down, as the DXY- dollar index rallied to a fresh monthly high of 104.50 mark.

Gold price, Daily chart

Surging dollar and interest rates make the dollar-priced bullions more expensive for buyers with other currencies. At the same time, investors prefer the dollar instead of zero-yielding gold as a haven asset, given that the greenback offers better returns-yields.

Prices of the yellow metal were set to lose between 2% this week, their third straight week in the red, while the prices of the silver metal were set to lose nearly 4%, their fifth straight week in the red.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

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Exclusive Change Capital Ltd is incorporated under the laws of Cyprus, with registration no. HE 337858, regulated by CySEC under license no. 330/17 and has its registered address at Theodorou Potamianou 56, 4th Floor, Kato Polemidia, 4155, Limassol, Cyprus

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66.67% 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. Please read our full Risk Disclosure.

Restricted Regions: Exclusive Change Capital Ltd, does not provide services to citizens / residents of certain regions, such as Belarus, Belgium, Canada, Cuba, Iran, Iraq, Japan, North Korea, Latvia, Russian Federation, Sudan, Syria, Turkey, The United States and Ukraine.

ISO 27001:2013

The services are delivered under the controls established by information security management systems in conformity with ISO/IEC 27001:2013, and we are certified by MSECB.

Copyright ©️ 2017-2024 Exclusive Change Capital Ltd

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