Risk-off mood after inflationary data in US and EU

Posted on by Vrasidas Neofytou

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.

2-year U.S. Treasury yield, 3-month chart

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.

2-year U.S. Treasury yield, 3-month chart

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.

2-year U.S. Treasury yield, 3-month chart

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.

In the U.S., the growing worries over higher interest rates for a longer period coupled with the lingering inflation have lifted the 10-year Treasury yields above 4% on Wednesday for the first time since early November 2022.

2-year U.S. Treasury yield, 3-month chart

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.

In the U.S., the growing worries over higher interest rates for a longer period coupled with the lingering inflation have lifted the 10-year Treasury yields above 4% on Wednesday for the first time since early November 2022.

2-year U.S. Treasury yield, 3-month chart

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.

The market is also concerned that borrowing costs are set to rise more than previously expected, weighing on future economic growth, as inflation has proved difficult to tame.

In the U.S., the growing worries over higher interest rates for a longer period coupled with the lingering inflation have lifted the 10-year Treasury yields above 4% on Wednesday for the first time since early November 2022.

2-year U.S. Treasury yield, 3-month chart

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.

The market is also concerned that borrowing costs are set to rise more than previously expected, weighing on future economic growth, as inflation has proved difficult to tame.

In the U.S., the growing worries over higher interest rates for a longer period coupled with the lingering inflation have lifted the 10-year Treasury yields above 4% on Wednesday for the first time since early November 2022.

2-year U.S. Treasury yield, 3-month chart

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.

Economists worry that those robust macroeconomic indicators could prompt both the Federal Reserve and European Central Bank to keep interest rates elevated for a longer time than anticipated to curb persistent inflation.

The market is also concerned that borrowing costs are set to rise more than previously expected, weighing on future economic growth, as inflation has proved difficult to tame.

In the U.S., the growing worries over higher interest rates for a longer period coupled with the lingering inflation have lifted the 10-year Treasury yields above 4% on Wednesday for the first time since early November 2022.

2-year U.S. Treasury yield, 3-month chart

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.

Economists worry that those robust macroeconomic indicators could prompt both the Federal Reserve and European Central Bank to keep interest rates elevated for a longer time than anticipated to curb persistent inflation.

The market is also concerned that borrowing costs are set to rise more than previously expected, weighing on future economic growth, as inflation has proved difficult to tame.

In the U.S., the growing worries over higher interest rates for a longer period coupled with the lingering inflation have lifted the 10-year Treasury yields above 4% on Wednesday for the first time since early November 2022.

2-year U.S. Treasury yield, 3-month chart

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.

On Wednesday, the Institute for Supply Management’s (ISM) survey showed U.S. manufacturing contracted in February by 47.7% vs 47.4% in January, while the manufacturing prices for raw materials increased last month by 51.3 vs 44.5 in January.

Economists worry that those robust macroeconomic indicators could prompt both the Federal Reserve and European Central Bank to keep interest rates elevated for a longer time than anticipated to curb persistent inflation.

The market is also concerned that borrowing costs are set to rise more than previously expected, weighing on future economic growth, as inflation has proved difficult to tame.

In the U.S., the growing worries over higher interest rates for a longer period coupled with the lingering inflation have lifted the 10-year Treasury yields above 4% on Wednesday for the first time since early November 2022.

2-year U.S. Treasury yield, 3-month chart

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.

On Wednesday, the Institute for Supply Management’s (ISM) survey showed U.S. manufacturing contracted in February by 47.7% vs 47.4% in January, while the manufacturing prices for raw materials increased last month by 51.3 vs 44.5 in January.

Economists worry that those robust macroeconomic indicators could prompt both the Federal Reserve and European Central Bank to keep interest rates elevated for a longer time than anticipated to curb persistent inflation.

The market is also concerned that borrowing costs are set to rise more than previously expected, weighing on future economic growth, as inflation has proved difficult to tame.

In the U.S., the growing worries over higher interest rates for a longer period coupled with the lingering inflation have lifted the 10-year Treasury yields above 4% on Wednesday for the first time since early November 2022.

2-year U.S. Treasury yield, 3-month chart

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.

The 20-member region has gone through substantial price increases in 2022 after Russia’s invasion of Ukraine pushed up energy and food costs across the bloc. However, the latest data provides further evidence that inflation has started to ease as energy prices have softened from previous levels.

On Wednesday, the Institute for Supply Management’s (ISM) survey showed U.S. manufacturing contracted in February by 47.7% vs 47.4% in January, while the manufacturing prices for raw materials increased last month by 51.3 vs 44.5 in January.

Economists worry that those robust macroeconomic indicators could prompt both the Federal Reserve and European Central Bank to keep interest rates elevated for a longer time than anticipated to curb persistent inflation.

The market is also concerned that borrowing costs are set to rise more than previously expected, weighing on future economic growth, as inflation has proved difficult to tame.

In the U.S., the growing worries over higher interest rates for a longer period coupled with the lingering inflation have lifted the 10-year Treasury yields above 4% on Wednesday for the first time since early November 2022.

2-year U.S. Treasury yield, 3-month chart

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.

The 20-member region has gone through substantial price increases in 2022 after Russia’s invasion of Ukraine pushed up energy and food costs across the bloc. However, the latest data provides further evidence that inflation has started to ease as energy prices have softened from previous levels.

On Wednesday, the Institute for Supply Management’s (ISM) survey showed U.S. manufacturing contracted in February by 47.7% vs 47.4% in January, while the manufacturing prices for raw materials increased last month by 51.3 vs 44.5 in January.

Economists worry that those robust macroeconomic indicators could prompt both the Federal Reserve and European Central Bank to keep interest rates elevated for a longer time than anticipated to curb persistent inflation.

The market is also concerned that borrowing costs are set to rise more than previously expected, weighing on future economic growth, as inflation has proved difficult to tame.

In the U.S., the growing worries over higher interest rates for a longer period coupled with the lingering inflation have lifted the 10-year Treasury yields above 4% on Wednesday for the first time since early November 2022.

2-year U.S. Treasury yield, 3-month chart

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.

However, core inflation, which strips out energy and food costs, rose at 5.6% in February vs 5.3% market expectation and from 5.35 in January, a key economic indicator that is keeping the pressure on the European Central Bank to continue raising interest rates in the next months.

The 20-member region has gone through substantial price increases in 2022 after Russia’s invasion of Ukraine pushed up energy and food costs across the bloc. However, the latest data provides further evidence that inflation has started to ease as energy prices have softened from previous levels.

On Wednesday, the Institute for Supply Management’s (ISM) survey showed U.S. manufacturing contracted in February by 47.7% vs 47.4% in January, while the manufacturing prices for raw materials increased last month by 51.3 vs 44.5 in January.

Economists worry that those robust macroeconomic indicators could prompt both the Federal Reserve and European Central Bank to keep interest rates elevated for a longer time than anticipated to curb persistent inflation.

The market is also concerned that borrowing costs are set to rise more than previously expected, weighing on future economic growth, as inflation has proved difficult to tame.

In the U.S., the growing worries over higher interest rates for a longer period coupled with the lingering inflation have lifted the 10-year Treasury yields above 4% on Wednesday for the first time since early November 2022.

2-year U.S. Treasury yield, 3-month chart

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.

However, core inflation, which strips out energy and food costs, rose at 5.6% in February vs 5.3% market expectation and from 5.35 in January, a key economic indicator that is keeping the pressure on the European Central Bank to continue raising interest rates in the next months.

The 20-member region has gone through substantial price increases in 2022 after Russia’s invasion of Ukraine pushed up energy and food costs across the bloc. However, the latest data provides further evidence that inflation has started to ease as energy prices have softened from previous levels.

On Wednesday, the Institute for Supply Management’s (ISM) survey showed U.S. manufacturing contracted in February by 47.7% vs 47.4% in January, while the manufacturing prices for raw materials increased last month by 51.3 vs 44.5 in January.

Economists worry that those robust macroeconomic indicators could prompt both the Federal Reserve and European Central Bank to keep interest rates elevated for a longer time than anticipated to curb persistent inflation.

The market is also concerned that borrowing costs are set to rise more than previously expected, weighing on future economic growth, as inflation has proved difficult to tame.

In the U.S., the growing worries over higher interest rates for a longer period coupled with the lingering inflation have lifted the 10-year Treasury yields above 4% on Wednesday for the first time since early November 2022.

2-year U.S. Treasury yield, 3-month chart

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.

Analysts polled by the Wall Street Journal were expecting a lower February inflation rate of 8.2%, but the surging food prices offset declines in energy costs.

However, core inflation, which strips out energy and food costs, rose at 5.6% in February vs 5.3% market expectation and from 5.35 in January, a key economic indicator that is keeping the pressure on the European Central Bank to continue raising interest rates in the next months.

The 20-member region has gone through substantial price increases in 2022 after Russia’s invasion of Ukraine pushed up energy and food costs across the bloc. However, the latest data provides further evidence that inflation has started to ease as energy prices have softened from previous levels.

On Wednesday, the Institute for Supply Management’s (ISM) survey showed U.S. manufacturing contracted in February by 47.7% vs 47.4% in January, while the manufacturing prices for raw materials increased last month by 51.3 vs 44.5 in January.

Economists worry that those robust macroeconomic indicators could prompt both the Federal Reserve and European Central Bank to keep interest rates elevated for a longer time than anticipated to curb persistent inflation.

The market is also concerned that borrowing costs are set to rise more than previously expected, weighing on future economic growth, as inflation has proved difficult to tame.

In the U.S., the growing worries over higher interest rates for a longer period coupled with the lingering inflation have lifted the 10-year Treasury yields above 4% on Wednesday for the first time since early November 2022.

2-year U.S. Treasury yield, 3-month chart

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.

Analysts polled by the Wall Street Journal were expecting a lower February inflation rate of 8.2%, but the surging food prices offset declines in energy costs.

However, core inflation, which strips out energy and food costs, rose at 5.6% in February vs 5.3% market expectation and from 5.35 in January, a key economic indicator that is keeping the pressure on the European Central Bank to continue raising interest rates in the next months.

The 20-member region has gone through substantial price increases in 2022 after Russia’s invasion of Ukraine pushed up energy and food costs across the bloc. However, the latest data provides further evidence that inflation has started to ease as energy prices have softened from previous levels.

On Wednesday, the Institute for Supply Management’s (ISM) survey showed U.S. manufacturing contracted in February by 47.7% vs 47.4% in January, while the manufacturing prices for raw materials increased last month by 51.3 vs 44.5 in January.

Economists worry that those robust macroeconomic indicators could prompt both the Federal Reserve and European Central Bank to keep interest rates elevated for a longer time than anticipated to curb persistent inflation.

The market is also concerned that borrowing costs are set to rise more than previously expected, weighing on future economic growth, as inflation has proved difficult to tame.

In the U.S., the growing worries over higher interest rates for a longer period coupled with the lingering inflation have lifted the 10-year Treasury yields above 4% on Wednesday for the first time since early November 2022.

2-year U.S. Treasury yield, 3-month chart

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.

On Thursday morning, ECB announced that the headline inflation across the bloc came in at 8.5% in February, which is slightly lower than the 8.6% in January 2023, but well below the 9.2% in December, and the record of 10.6% in October 2022.

Analysts polled by the Wall Street Journal were expecting a lower February inflation rate of 8.2%, but the surging food prices offset declines in energy costs.

However, core inflation, which strips out energy and food costs, rose at 5.6% in February vs 5.3% market expectation and from 5.35 in January, a key economic indicator that is keeping the pressure on the European Central Bank to continue raising interest rates in the next months.

The 20-member region has gone through substantial price increases in 2022 after Russia’s invasion of Ukraine pushed up energy and food costs across the bloc. However, the latest data provides further evidence that inflation has started to ease as energy prices have softened from previous levels.

On Wednesday, the Institute for Supply Management’s (ISM) survey showed U.S. manufacturing contracted in February by 47.7% vs 47.4% in January, while the manufacturing prices for raw materials increased last month by 51.3 vs 44.5 in January.

Economists worry that those robust macroeconomic indicators could prompt both the Federal Reserve and European Central Bank to keep interest rates elevated for a longer time than anticipated to curb persistent inflation.

The market is also concerned that borrowing costs are set to rise more than previously expected, weighing on future economic growth, as inflation has proved difficult to tame.

In the U.S., the growing worries over higher interest rates for a longer period coupled with the lingering inflation have lifted the 10-year Treasury yields above 4% on Wednesday for the first time since early November 2022.

2-year U.S. Treasury yield, 3-month chart

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.

On Thursday morning, ECB announced that the headline inflation across the bloc came in at 8.5% in February, which is slightly lower than the 8.6% in January 2023, but well below the 9.2% in December, and the record of 10.6% in October 2022.

Analysts polled by the Wall Street Journal were expecting a lower February inflation rate of 8.2%, but the surging food prices offset declines in energy costs.

However, core inflation, which strips out energy and food costs, rose at 5.6% in February vs 5.3% market expectation and from 5.35 in January, a key economic indicator that is keeping the pressure on the European Central Bank to continue raising interest rates in the next months.

The 20-member region has gone through substantial price increases in 2022 after Russia’s invasion of Ukraine pushed up energy and food costs across the bloc. However, the latest data provides further evidence that inflation has started to ease as energy prices have softened from previous levels.

On Wednesday, the Institute for Supply Management’s (ISM) survey showed U.S. manufacturing contracted in February by 47.7% vs 47.4% in January, while the manufacturing prices for raw materials increased last month by 51.3 vs 44.5 in January.

Economists worry that those robust macroeconomic indicators could prompt both the Federal Reserve and European Central Bank to keep interest rates elevated for a longer time than anticipated to curb persistent inflation.

The market is also concerned that borrowing costs are set to rise more than previously expected, weighing on future economic growth, as inflation has proved difficult to tame.

In the U.S., the growing worries over higher interest rates for a longer period coupled with the lingering inflation have lifted the 10-year Treasury yields above 4% on Wednesday for the first time since early November 2022.

2-year U.S. Treasury yield, 3-month chart

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.A risk aversion sentiment dominates the global financial markets on Thursday as investors believe that a run of strong economic indicators in the U.S. and EU could smash hopes inflation will rapidly fall to near the Fed and ECB’s 2% target, keeping their hawkish stance for longer.

On Thursday morning, ECB announced that the headline inflation across the bloc came in at 8.5% in February, which is slightly lower than the 8.6% in January 2023, but well below the 9.2% in December, and the record of 10.6% in October 2022.

Analysts polled by the Wall Street Journal were expecting a lower February inflation rate of 8.2%, but the surging food prices offset declines in energy costs.

However, core inflation, which strips out energy and food costs, rose at 5.6% in February vs 5.3% market expectation and from 5.35 in January, a key economic indicator that is keeping the pressure on the European Central Bank to continue raising interest rates in the next months.

The 20-member region has gone through substantial price increases in 2022 after Russia’s invasion of Ukraine pushed up energy and food costs across the bloc. However, the latest data provides further evidence that inflation has started to ease as energy prices have softened from previous levels.

On Wednesday, the Institute for Supply Management’s (ISM) survey showed U.S. manufacturing contracted in February by 47.7% vs 47.4% in January, while the manufacturing prices for raw materials increased last month by 51.3 vs 44.5 in January.

Economists worry that those robust macroeconomic indicators could prompt both the Federal Reserve and European Central Bank to keep interest rates elevated for a longer time than anticipated to curb persistent inflation.

The market is also concerned that borrowing costs are set to rise more than previously expected, weighing on future economic growth, as inflation has proved difficult to tame.

In the U.S., the growing worries over higher interest rates for a longer period coupled with the lingering inflation have lifted the 10-year Treasury yields above 4% on Wednesday for the first time since early November 2022.

2-year U.S. Treasury yield, 3-month chart

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.A risk aversion sentiment dominates the global financial markets on Thursday as investors believe that a run of strong economic indicators in the U.S. and EU could smash hopes inflation will rapidly fall to near the Fed and ECB’s 2% target, keeping their hawkish stance for longer.

On Thursday morning, ECB announced that the headline inflation across the bloc came in at 8.5% in February, which is slightly lower than the 8.6% in January 2023, but well below the 9.2% in December, and the record of 10.6% in October 2022.

Analysts polled by the Wall Street Journal were expecting a lower February inflation rate of 8.2%, but the surging food prices offset declines in energy costs.

However, core inflation, which strips out energy and food costs, rose at 5.6% in February vs 5.3% market expectation and from 5.35 in January, a key economic indicator that is keeping the pressure on the European Central Bank to continue raising interest rates in the next months.

The 20-member region has gone through substantial price increases in 2022 after Russia’s invasion of Ukraine pushed up energy and food costs across the bloc. However, the latest data provides further evidence that inflation has started to ease as energy prices have softened from previous levels.

On Wednesday, the Institute for Supply Management’s (ISM) survey showed U.S. manufacturing contracted in February by 47.7% vs 47.4% in January, while the manufacturing prices for raw materials increased last month by 51.3 vs 44.5 in January.

Economists worry that those robust macroeconomic indicators could prompt both the Federal Reserve and European Central Bank to keep interest rates elevated for a longer time than anticipated to curb persistent inflation.

The market is also concerned that borrowing costs are set to rise more than previously expected, weighing on future economic growth, as inflation has proved difficult to tame.

In the U.S., the growing worries over higher interest rates for a longer period coupled with the lingering inflation have lifted the 10-year Treasury yields above 4% on Wednesday for the first time since early November 2022.

2-year U.S. Treasury yield, 3-month chart

Yet, the 2-year note yield, which typically moves in step with interest rate expectations, reached levels not seen since 2007, climbing up to 4.937%.

As a result, both the S&P 500 and Nasdaq Composite settled lower by more than 0.40% on Wednesday and are on pace for their second consecutive losing week for the first time since December.

Chinese stocks rally on improved PMI manufacturing activity

Posted on by Vrasidas Neofytou

China-trade and commodity currencies Australian and New Zealand dollars also got a boost to $0.6765 and $0.6250 respectively as the economic recovery in China could increase the demand for raw materials.

China-trade and commodity currencies Australian and New Zealand dollars also got a boost to $0.6765 and $0.6250 respectively as the economic recovery in China could increase the demand for raw materials.

Growth-sensitive Brent crude oil and Copper rose 1% to $84/b and $4.10/lb respectively, as the stronger-than-expected Chinese manufacturing activity data boosted optimism in the recovery of the world’s largest commodities importer.

China-trade and commodity currencies Australian and New Zealand dollars also got a boost to $0.6765 and $0.6250 respectively as the economic recovery in China could increase the demand for raw materials.

Growth-sensitive Brent crude oil and Copper rose 1% to $84/b and $4.10/lb respectively, as the stronger-than-expected Chinese manufacturing activity data boosted optimism in the recovery of the world’s largest commodities importer.

China-trade and commodity currencies Australian and New Zealand dollars also got a boost to $0.6765 and $0.6250 respectively as the economic recovery in China could increase the demand for raw materials.

The robust macroeconomic data from China aligned with Moody’s forecast for a positive economic outlook, where the rating agency expects China’s real GDP to grow by 5% for both 2023 and 2024, up from its previous projections of 4.0%, supported by the rebound in consumer sentiment and pent-up demand for services, traveling and leisure after three years of pandemic-led restrictions.

Growth-sensitive Brent crude oil and Copper rose 1% to $84/b and $4.10/lb respectively, as the stronger-than-expected Chinese manufacturing activity data boosted optimism in the recovery of the world’s largest commodities importer.

China-trade and commodity currencies Australian and New Zealand dollars also got a boost to $0.6765 and $0.6250 respectively as the economic recovery in China could increase the demand for raw materials.

The robust macroeconomic data from China aligned with Moody’s forecast for a positive economic outlook, where the rating agency expects China’s real GDP to grow by 5% for both 2023 and 2024, up from its previous projections of 4.0%, supported by the rebound in consumer sentiment and pent-up demand for services, traveling and leisure after three years of pandemic-led restrictions.

Growth-sensitive Brent crude oil and Copper rose 1% to $84/b and $4.10/lb respectively, as the stronger-than-expected Chinese manufacturing activity data boosted optimism in the recovery of the world’s largest commodities importer.

China-trade and commodity currencies Australian and New Zealand dollars also got a boost to $0.6765 and $0.6250 respectively as the economic recovery in China could increase the demand for raw materials.

That’s compared to January’s reading of 50.1 and above expectations of 50.5, while the Non-manufacturing PMI also rose to 56.3 – above January’s reading of 54.4, the highest level since June 2022.

The robust macroeconomic data from China aligned with Moody’s forecast for a positive economic outlook, where the rating agency expects China’s real GDP to grow by 5% for both 2023 and 2024, up from its previous projections of 4.0%, supported by the rebound in consumer sentiment and pent-up demand for services, traveling and leisure after three years of pandemic-led restrictions.

Growth-sensitive Brent crude oil and Copper rose 1% to $84/b and $4.10/lb respectively, as the stronger-than-expected Chinese manufacturing activity data boosted optimism in the recovery of the world’s largest commodities importer.

China-trade and commodity currencies Australian and New Zealand dollars also got a boost to $0.6765 and $0.6250 respectively as the economic recovery in China could increase the demand for raw materials.

That’s compared to January’s reading of 50.1 and above expectations of 50.5, while the Non-manufacturing PMI also rose to 56.3 – above January’s reading of 54.4, the highest level since June 2022.

The robust macroeconomic data from China aligned with Moody’s forecast for a positive economic outlook, where the rating agency expects China’s real GDP to grow by 5% for both 2023 and 2024, up from its previous projections of 4.0%, supported by the rebound in consumer sentiment and pent-up demand for services, traveling and leisure after three years of pandemic-led restrictions.

Growth-sensitive Brent crude oil and Copper rose 1% to $84/b and $4.10/lb respectively, as the stronger-than-expected Chinese manufacturing activity data boosted optimism in the recovery of the world’s largest commodities importer.

China-trade and commodity currencies Australian and New Zealand dollars also got a boost to $0.6765 and $0.6250 respectively as the economic recovery in China could increase the demand for raw materials.

The appetite for risky assets increased this morning following the report from China’s National Bureau of Statistics that showed the widely watched official PMI manufacturing purchasing managers’ index rising to 52.6 in February, above the 50-point mark that separates growth from contraction, the highest since April 2012.

That’s compared to January’s reading of 50.1 and above expectations of 50.5, while the Non-manufacturing PMI also rose to 56.3 – above January’s reading of 54.4, the highest level since June 2022.

The robust macroeconomic data from China aligned with Moody’s forecast for a positive economic outlook, where the rating agency expects China’s real GDP to grow by 5% for both 2023 and 2024, up from its previous projections of 4.0%, supported by the rebound in consumer sentiment and pent-up demand for services, traveling and leisure after three years of pandemic-led restrictions.

Growth-sensitive Brent crude oil and Copper rose 1% to $84/b and $4.10/lb respectively, as the stronger-than-expected Chinese manufacturing activity data boosted optimism in the recovery of the world’s largest commodities importer.

China-trade and commodity currencies Australian and New Zealand dollars also got a boost to $0.6765 and $0.6250 respectively as the economic recovery in China could increase the demand for raw materials.

The appetite for risky assets increased this morning following the report from China’s National Bureau of Statistics that showed the widely watched official PMI manufacturing purchasing managers’ index rising to 52.6 in February, above the 50-point mark that separates growth from contraction, the highest since April 2012.

That’s compared to January’s reading of 50.1 and above expectations of 50.5, while the Non-manufacturing PMI also rose to 56.3 – above January’s reading of 54.4, the highest level since June 2022.

The robust macroeconomic data from China aligned with Moody’s forecast for a positive economic outlook, where the rating agency expects China’s real GDP to grow by 5% for both 2023 and 2024, up from its previous projections of 4.0%, supported by the rebound in consumer sentiment and pent-up demand for services, traveling and leisure after three years of pandemic-led restrictions.

Growth-sensitive Brent crude oil and Copper rose 1% to $84/b and $4.10/lb respectively, as the stronger-than-expected Chinese manufacturing activity data boosted optimism in the recovery of the world’s largest commodities importer.

China-trade and commodity currencies Australian and New Zealand dollars also got a boost to $0.6765 and $0.6250 respectively as the economic recovery in China could increase the demand for raw materials.

Hang Seng index, Daily chart

The appetite for risky assets increased this morning following the report from China’s National Bureau of Statistics that showed the widely watched official PMI manufacturing purchasing managers’ index rising to 52.6 in February, above the 50-point mark that separates growth from contraction, the highest since April 2012.

That’s compared to January’s reading of 50.1 and above expectations of 50.5, while the Non-manufacturing PMI also rose to 56.3 – above January’s reading of 54.4, the highest level since June 2022.

The robust macroeconomic data from China aligned with Moody’s forecast for a positive economic outlook, where the rating agency expects China’s real GDP to grow by 5% for both 2023 and 2024, up from its previous projections of 4.0%, supported by the rebound in consumer sentiment and pent-up demand for services, traveling and leisure after three years of pandemic-led restrictions.

Growth-sensitive Brent crude oil and Copper rose 1% to $84/b and $4.10/lb respectively, as the stronger-than-expected Chinese manufacturing activity data boosted optimism in the recovery of the world’s largest commodities importer.

China-trade and commodity currencies Australian and New Zealand dollars also got a boost to $0.6765 and $0.6250 respectively as the economic recovery in China could increase the demand for raw materials.

Hang Seng index, Daily chart

The appetite for risky assets increased this morning following the report from China’s National Bureau of Statistics that showed the widely watched official PMI manufacturing purchasing managers’ index rising to 52.6 in February, above the 50-point mark that separates growth from contraction, the highest since April 2012.

That’s compared to January’s reading of 50.1 and above expectations of 50.5, while the Non-manufacturing PMI also rose to 56.3 – above January’s reading of 54.4, the highest level since June 2022.

The robust macroeconomic data from China aligned with Moody’s forecast for a positive economic outlook, where the rating agency expects China’s real GDP to grow by 5% for both 2023 and 2024, up from its previous projections of 4.0%, supported by the rebound in consumer sentiment and pent-up demand for services, traveling and leisure after three years of pandemic-led restrictions.

Growth-sensitive Brent crude oil and Copper rose 1% to $84/b and $4.10/lb respectively, as the stronger-than-expected Chinese manufacturing activity data boosted optimism in the recovery of the world’s largest commodities importer.

China-trade and commodity currencies Australian and New Zealand dollars also got a boost to $0.6765 and $0.6250 respectively as the economic recovery in China could increase the demand for raw materials.

Hang Seng index, Daily chart

The appetite for risky assets increased this morning following the report from China’s National Bureau of Statistics that showed the widely watched official PMI manufacturing purchasing managers’ index rising to 52.6 in February, above the 50-point mark that separates growth from contraction, the highest since April 2012.

That’s compared to January’s reading of 50.1 and above expectations of 50.5, while the Non-manufacturing PMI also rose to 56.3 – above January’s reading of 54.4, the highest level since June 2022.

The robust macroeconomic data from China aligned with Moody’s forecast for a positive economic outlook, where the rating agency expects China’s real GDP to grow by 5% for both 2023 and 2024, up from its previous projections of 4.0%, supported by the rebound in consumer sentiment and pent-up demand for services, traveling and leisure after three years of pandemic-led restrictions.

Growth-sensitive Brent crude oil and Copper rose 1% to $84/b and $4.10/lb respectively, as the stronger-than-expected Chinese manufacturing activity data boosted optimism in the recovery of the world’s largest commodities importer.

China-trade and commodity currencies Australian and New Zealand dollars also got a boost to $0.6765 and $0.6250 respectively as the economic recovery in China could increase the demand for raw materials.

Hong Kong’s Hang Seng index rose 4.15% – leading gains in the region, while the growth-sensitive Hang Seng Tech index climbed 6.5%. In mainland China, the Shenzhen Component rose 1.1% to close at 11,914.32, and the Shanghai Composite finished 1% up at 3,312.35.

Hang Seng index, Daily chart

The appetite for risky assets increased this morning following the report from China’s National Bureau of Statistics that showed the widely watched official PMI manufacturing purchasing managers’ index rising to 52.6 in February, above the 50-point mark that separates growth from contraction, the highest since April 2012.

That’s compared to January’s reading of 50.1 and above expectations of 50.5, while the Non-manufacturing PMI also rose to 56.3 – above January’s reading of 54.4, the highest level since June 2022.

The robust macroeconomic data from China aligned with Moody’s forecast for a positive economic outlook, where the rating agency expects China’s real GDP to grow by 5% for both 2023 and 2024, up from its previous projections of 4.0%, supported by the rebound in consumer sentiment and pent-up demand for services, traveling and leisure after three years of pandemic-led restrictions.

Growth-sensitive Brent crude oil and Copper rose 1% to $84/b and $4.10/lb respectively, as the stronger-than-expected Chinese manufacturing activity data boosted optimism in the recovery of the world’s largest commodities importer.

China-trade and commodity currencies Australian and New Zealand dollars also got a boost to $0.6765 and $0.6250 respectively as the economic recovery in China could increase the demand for raw materials.

Hong Kong’s Hang Seng index rose 4.15% – leading gains in the region, while the growth-sensitive Hang Seng Tech index climbed 6.5%. In mainland China, the Shenzhen Component rose 1.1% to close at 11,914.32, and the Shanghai Composite finished 1% up at 3,312.35.

Hang Seng index, Daily chart

The appetite for risky assets increased this morning following the report from China’s National Bureau of Statistics that showed the widely watched official PMI manufacturing purchasing managers’ index rising to 52.6 in February, above the 50-point mark that separates growth from contraction, the highest since April 2012.

That’s compared to January’s reading of 50.1 and above expectations of 50.5, while the Non-manufacturing PMI also rose to 56.3 – above January’s reading of 54.4, the highest level since June 2022.

The robust macroeconomic data from China aligned with Moody’s forecast for a positive economic outlook, where the rating agency expects China’s real GDP to grow by 5% for both 2023 and 2024, up from its previous projections of 4.0%, supported by the rebound in consumer sentiment and pent-up demand for services, traveling and leisure after three years of pandemic-led restrictions.

Growth-sensitive Brent crude oil and Copper rose 1% to $84/b and $4.10/lb respectively, as the stronger-than-expected Chinese manufacturing activity data boosted optimism in the recovery of the world’s largest commodities importer.

China-trade and commodity currencies Australian and New Zealand dollars also got a boost to $0.6765 and $0.6250 respectively as the economic recovery in China could increase the demand for raw materials.

Chinese stocks led the gains this morning following the faster-than-expected growth in China’s manufacturing activity, as the recovery of the second largest economy in the world gained momentum after it scaled back its strict zero-COVID policy a few weeks ago.

Hong Kong’s Hang Seng index rose 4.15% – leading gains in the region, while the growth-sensitive Hang Seng Tech index climbed 6.5%. In mainland China, the Shenzhen Component rose 1.1% to close at 11,914.32, and the Shanghai Composite finished 1% up at 3,312.35.

Hang Seng index, Daily chart

The appetite for risky assets increased this morning following the report from China’s National Bureau of Statistics that showed the widely watched official PMI manufacturing purchasing managers’ index rising to 52.6 in February, above the 50-point mark that separates growth from contraction, the highest since April 2012.

That’s compared to January’s reading of 50.1 and above expectations of 50.5, while the Non-manufacturing PMI also rose to 56.3 – above January’s reading of 54.4, the highest level since June 2022.

The robust macroeconomic data from China aligned with Moody’s forecast for a positive economic outlook, where the rating agency expects China’s real GDP to grow by 5% for both 2023 and 2024, up from its previous projections of 4.0%, supported by the rebound in consumer sentiment and pent-up demand for services, traveling and leisure after three years of pandemic-led restrictions.

Growth-sensitive Brent crude oil and Copper rose 1% to $84/b and $4.10/lb respectively, as the stronger-than-expected Chinese manufacturing activity data boosted optimism in the recovery of the world’s largest commodities importer.

China-trade and commodity currencies Australian and New Zealand dollars also got a boost to $0.6765 and $0.6250 respectively as the economic recovery in China could increase the demand for raw materials.

Chinese stocks led the gains this morning following the faster-than-expected growth in China’s manufacturing activity, as the recovery of the second largest economy in the world gained momentum after it scaled back its strict zero-COVID policy a few weeks ago.

Hong Kong’s Hang Seng index rose 4.15% – leading gains in the region, while the growth-sensitive Hang Seng Tech index climbed 6.5%. In mainland China, the Shenzhen Component rose 1.1% to close at 11,914.32, and the Shanghai Composite finished 1% up at 3,312.35.

Hang Seng index, Daily chart

The appetite for risky assets increased this morning following the report from China’s National Bureau of Statistics that showed the widely watched official PMI manufacturing purchasing managers’ index rising to 52.6 in February, above the 50-point mark that separates growth from contraction, the highest since April 2012.

That’s compared to January’s reading of 50.1 and above expectations of 50.5, while the Non-manufacturing PMI also rose to 56.3 – above January’s reading of 54.4, the highest level since June 2022.

The robust macroeconomic data from China aligned with Moody’s forecast for a positive economic outlook, where the rating agency expects China’s real GDP to grow by 5% for both 2023 and 2024, up from its previous projections of 4.0%, supported by the rebound in consumer sentiment and pent-up demand for services, traveling and leisure after three years of pandemic-led restrictions.

Growth-sensitive Brent crude oil and Copper rose 1% to $84/b and $4.10/lb respectively, as the stronger-than-expected Chinese manufacturing activity data boosted optimism in the recovery of the world’s largest commodities importer.

China-trade and commodity currencies Australian and New Zealand dollars also got a boost to $0.6765 and $0.6250 respectively as the economic recovery in China could increase the demand for raw materials.

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.

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 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.

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.

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.

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.

Exclusive Change Capital Ltd is regulated by the Cyprus Securities and Exchange Commission (CySEC) under the licence number CIF 330/17. Exclusive Capital Ltd operates in accordance with the Markets in Financial Instruments Directive (MiFID) of the European Union.

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. 77.61% 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.

The Company's official website of Exclusive Change Capital Ltd is www.exclusivecapital.com and we are not affiliated in any way with other domains or companies.

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 27001:2022

The services are delivered under the controls established by information security management systems in conformity with ISO/IEC 27001:2022, and we are certified by MSECB.

Copyright ©️ 2017-2025 Exclusive Change Capital Ltd

facebook twitter linkedin instagram youtube