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Commodities slammed on hopes for peace

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HEADLINES

 

  • Dollar slips as traders eye Fed, Russia-Ukraine talks
  • CEE FX rise on further talks between Ukraine and Russia
  • Oil falls over 5% on Russia-Ukraine talk hopes, China lockdowns
  • Palladium dives about 17% as Russia supply fears recede
  • Tech, growth stocks lead Wall Street to lower close as investors focus on interest rates
  • EUR/USD could climb to the 1.14 level by year-end – Nomura
  • GBPJPY Near Term: Upside favored

 

 

FOREX

 

Dollar slips as traders eye Fed, Russia-Ukraine talks

 

The dollar dipped modestly against a basket of currencies on Monday but remained near a 21-month high hit last week as investors eyed Russia-Ukraine peace talks, while major central bank meetings this week kept large moves in foreign exchange in check.

The dollar index fell 0.056% at 98.96, not far from the 99.415 touched a week ago, the highest level for the greenback since May 2020.

 

FX rise on further talks between Ukraine and Russia

 

Central European currencies rose on Monday on hopes that further talks due between Kyiv and Moscow might ease the situation in Ukraine. Ukrainian and Russian negotiators were set to talk again after both sides cited progress, even though Russia attacked a base near the Polish border and fighting raged elsewhere. 

The Czech crown was 1% firmer at 24.900 per euro as of 0909 GMT, trading below 25.00 for the first time since Feb. 28. The Polish zloty rose by 0.9% to 4.75 per euro.

 

 

COMMODITIES

 

Oil falls over 5% on Russia-Ukraine talk hopes, China lockdowns

 

Oil prices fell more than 5% on Monday to the lowest in nearly two weeks amid hopes for progress toward a diplomatic end to Russia's invasion of Ukraine - a development that would boost global supplies - while a pandemic-linked travel ban in China cast doubt on demand.

 

Palladium dives about 17% as Russia supply fears recede

 

Palladium slumped nearly 17% in a sharp correction after rallying to an all-time high on the Ukraine crisis, as worries eased that supplies of the autocatalyst metal from top producer Russia may be hit. Progress in Russia-Ukraine peace talks also drove a nearly 2% retreat in gold.

Palladium, used in car engine exhausts to reduce emissions, dipped 14.2% to $2,415.49 per ounce by 02:01 p.m. ET (1801 GMT), facing its biggest daily percentage drop in two years. It fell as much as 16.8% earlier in the session.

 

 

STOCKS

 

Tech, growth stocks lead Wall Street to lower close as investors focus on interest rates

 

Major U.S. stock indexes closed mostly lower on Monday, led by a more than 2% drop in Nasdaq, as investors sold tech and big growth names ahead of this week's Federal Reserve meeting and an expected hike in interest rates.

The Dow ended flat, with financial and healthcare shares giving the index some support.

 

 

ANALYSIS

 

EUR/USD could climb to the 1.14 level by year-end – Nomura

 

“EUR support ahead would likely emerge from an easing of the Russia-Ukraine conflict, a possible Iran nuclear deal or OPEC output surprise that helps to stabilise energy prices, a shift towards more positivity on the euro area growth outlook and increased expectations of ECB monetary policy normalization (a hike in December goes ahead).”

“The negative risks for EUR include an extended geopolitical crisis that intensifies further into Q3, which could lead EUR/USD even closer towards parity of around 1.02-1.03 if we see fresh extremes in energy prices lead to factory closures.”

 

 

CHART

 

GBPJPY Near Term: Upside favored

 

Technical View: Long position above 152. Target 154. Conversely, break below 152, to open 151.5.

Comments: The pair remains supported. Further advance favored.

 

Source: Trading Central
 

 

CALENDAR

 

*Times in GMT

 

 

 

Source: FX Street Economic Calendar

 

SOURCE 

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/eur-usd-could-climb-to-the-114-level-by-year-end-nomura-202203141533
https://www.reuters.com/markets/europe/fx-rise-further-talks-between-ukraine-russia-shares-mixed-2022-03-14/
https://www.reuters.com/markets/europe/yen-slides-five-year-lows-start-busy-week-central-banks-2022-03-14/
https://www.reuters.com/business/oil-prices-slide-extending-last-weeks-decline-2022-03-14/
https://www.reuters.com/markets/europe/gold-falls-stronger-yields-risk-appetite-dent-appeal-2022-03-14/
https://www.reuters.com/business/futures-rise-hopes-ukraine-peace-talks-2022-03-14/

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