Oil prices rose about 1% on Wednesday, gaining back some of their losses during the previous session on concerns about energy demand after the International Monetary Fund (IMF) cut its economic growth forecasts. However, the demand concerns have been offset by a tighter supply outlook following sanctions on Russia, the world’s second-largest oil exporter and
News
Canadian Dollar surges in early US session after much stronger than expected consumer inflation data, which supports more aggressive tightening by BoC. Other commodity currencies are also strong. On the other hand, Dollar is trading broadly lower as recent rally lost momentum, in particular against Yen. Euro is also soft, together with Sterling and Swiss
On the recommendation, the firm cites expectations that easing inflation will cause rates to fall from here. From the report: “While CPI inflation is 8.5%, we believe the market may be overemphasising inflation risks. Our forecasts point to inflation peaking this quarter and falling steadily into 2023. We believe this will reduce the panic level
NEW DELHI: Gold prices dropped sharply on Wednesday to weekly lows following strength in US dollar and treasury yields, which dented bullion demand. On Tuesday, prices of the yellow metal fell up to 1.8 per cent as a stronger dollar and rising Treasury yields overshadowed inflows into bullion. Gold futures on MCX dropped 0.56 per
Japan’s benchmark 10-year JGB yield is pulled above BoJ’s cap of 0.25% in Asian session today. That triggered intervention by BoJ to defend the ceiling. At the same time, USD/JPY breached 129 handle but quickly retreated, on talks that BoJ could also intervene at around 130. But judging from overall price actions, the pull back
The IMF’s chief economist spoke in an interview with Reuters. This follows the latest report, covered here: Main point from the follow-up interview (Headlines via Reuters): says sees signs of higher inflation expectations increasing, may require more forceful tightening moves by central bankers says if inflation remains elevated for more than a couple more months
April 19: Gold prices steadied on Tuesday, after getting within a stone’s throw of the key $2,000 per ounce level in the previous session, as lower U.S. Treasury yields offset pressure from two-year highs in the dollar. FUNDAMENTALS * Spot gold held its ground at $1,977.61 per ounce, as of 0013 GMT. U.S. gold futures
Yen’s weakness remains the main theme today as selloff in major global treasuries continue. US 10-year yield breaches 2.9 handle while Germany 10-year yield breaches 0.94. UK 10-year Gilt yield is also heading towards 2% handle. Swiss Franc is following as second weakest together with Canadian Dollar. On the other hand, Aussie and leading the
Here’s a look at Treasury yields on the day: 2-year yields +1.7 bps to 2.477% 5-year yields +2.7 bps to 2.823% 10-year yields +3.5 bps to 2.897% 30-year yields +3.5 bps to 2.987% The levels are the highs for the day as the bond selling looks to resume. In turn, that is pinning USD/JPY higher
NEW DELHI: Gold prices eased on Tuesday after touching the key levels of $2,000 per ounce in the previous session. A stronger dollar dented the bullion’s appeal. Gold climbed to $1,998.10 on Monday, buoyed by safe-haven demand, as the Ukraine crisis dragged on and inflation concerns mounted. However, the metal later gave up most gains
Selloff in the Japan Yen continued this week and intensified in Asian session today. The move came as global benchmark treasury yields powered up, including those in the US, Germany and UK. For now, commodity currencies are the stronger ones for, followed closely by Dollar. European majors are generally weak. Technically, Canadian Dollar appears to
Although the US markets were open, Canada was mostly closed as was Europe. So in essence it was a semi-holiday in the markets today by virtue the fact that a good bit of the large traders were off. Nevertheless, there were some moves and stories. Ukraine remains a hotbed and helped contribute to oil prices
NEW DELHI: Gold prices rose on Monday, scaling their monthly highs as growing tensions between Russia and Ukraine drove investors to the safe-haven bullion. Ukrainian soldiers resisted a Russian ultimatum to lay down arms on Sunday in the pulverised port of Mariupol, which Moscow said its forces had almost completely seized in what would be
Just when you think that the bond market may be set for a bit of a breather at some point last week, we’re seeing yields shoot higher again today. 10-year Treasury yields are now at their highest since December 2018 as the rout intensifies, gradually inching closer to the 3% level. The move continues to
NEW DELHI: Most metal prices have been on a dream run, giving bulls reasons to smile. Zinc, which is used in alloys, paints, cosmetics, drugs, plastics, batteries and electrical equipment to name a few, is one of them that has seen no pause in the rally. The price of the metal rose to all-time highs
The recovery in US yields yesterday helped to underpin the dollar and the pair, with a follow through move seen so far in Asia trading. Just be mindful that liquidity conditions are thinner today with Australia and New Zealand (and later on most of Europe) being away due to the Easter break. In any case,
That will make for lighter trading conditions in the coming sessions, with it being a Canadian bank holiday as well today. The euro is pinned slightly lower and contesting the 1.0800 level again after a brief break yesterday following the ECB, with the yen also losing further ground amid a push higher in bond yields.
For all the talk in wanting to fight against inflation, the ECB certainly isn’t hinting at much conviction. The key word yesterday was flexibility as the ECB wants to be able to be afforded policy options and not be cornered into hiking rates as soon as possible. Lagarde’s press conference made that clear when she