Glasgow climate pact promises ‘phase down’ of coal

“Friendship is like money, easier made than kept.” – Samuel Butler

 

 

HEADLINES

 

 

• Dollar dips but shows biggest weekly gain in almost 3 months
• How a dispute over coal nearly sank the Glasgow Climate Pact
• Oil prices post third weekly drop after volatile week
• Gold up 7th Day in Row, on ‘Inflation Sparkle’
• Stocks rally, led by growth names, dollar eases
• J&J to spin off consumer products and focus on pharmaceuticals
• Positive USD momentum to continue – MUFG

 

 

FOREX

 

 

Dollar dips but shows biggest weekly gain in almost 3 months

 

The U.S. dollar lost a little ground on Friday as high inflation wreaked havoc on consumer sentiment, but the greenback was on track for its biggest weekly gain in almost three months after a surprisingly strong U.S. inflation print on Wednesday prompted investors to advance their bets for a U.S rate hike.

 

COMMODITIES

 

How a dispute over coal nearly sank the Glasgow Climate Pact

China, India, and other developing nations rich in coal reserves were threatening to scupper the deal over language that asked governments to “phase out” their use of coal, a demand they considered unfair and damaging to their hopes of economic growth. The coal “phase out” would become a “phase down”.

 

Oil prices post third weekly drop after volatile week

 

Oil prices fell on Friday, wiping out gains from the previous session, on worries that the U.S. Federal Reserve will accelerate plans to boost interest rates to tame inflation. Both benchmarks fell for a third consecutive week, hit by a strengthening dollar and speculation that President Joe Biden's administration might release oil from the U.S. Strategic Petroleum Reserve to cool prices. On a weekly basis, Brent fell 0.7%, while WTI declined 0.6%.

 

Gold up 7th Day in Row, on ‘Inflation Sparkle’

 

The yellow metal sparkled for a second week in a row, notching a win of 2.8% this week after last week’s 1.8%. It also rose for a seventh straight day, its longest stretch in the green since a previous run between the end of June and the first week of July.

 

 

STOCKS

 

 

Stocks rally, led by growth names, dollar eases

 

Global equity markets rallied on Friday, with European shares hitting new highs on strong earnings, while the dollar eased but posted its biggest weekly gain since late August.

On Wall Street, mega-cap stocks Microsoft Corp, Apple Inc, Meta Platforms Inc, formerly known as Facebook; Amazon.com Inc and Google parent Alphabet Inc led stocks higher. A case can be made that big tech stocks will react better to rising rates than cyclicals.

The broad STOXX Europe 600 index rose 0.30% to a record closing high. France's CAC40 index and Germany's DAX index also ended at record closing highs.

 

J&J to spin off consumer products and focus on pharmaceuticals

 

Johnson & Johnson (JNJ.N) plans to spin off its consumer health division that sells Listerine and Baby Powder to focus on pharmaceuticals and medical devices in the biggest shake-up in the U.S. company's 135-year history.

 

 

ANALYSIS

 

 

Positive USD momentum to continue – MUFG

 

“The 2-year UST bond yield is now trading at a post-pandemic cyclical high of 0.53% and we are now beginning to see the relative rates adjustment in favour of the US that we expected.”

“Stronger jobs growth and continued elevated inflation over the coming months will likely lead to speculation of a potentially faster pace of QE tapering that prompts higher rate expectations – a scenario that would continue to help strengthen the dollar over the coming months.”

 

 

CHART

 

 

US dollar / Swiss franc – 4-Hour Candlesticks

USD/CHF is pulling back from a supply area created by the sell-off on October 20. A return to prior resistance at 0.9175 could offer support for a rebound. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/positive-usd-momentum-to-continue-mufg-202111121051
https://www.reuters.com/business/global-markets-wrapup-3-2021-11-12/
https://www.reuters.com/business/healthcare-pharmaceuticals/johnson-johnson-plans-split-into-two-companies-wsj-2021-11-12/
https://www.reuters.com/business/dollar-dips-shows-biggest-weekly-gain-almost-3-months-2021-11-12/
https://www.reuters.com/article/turkey-currency/update-2-turkish-lira-hits-record-low-trades-below-10-to-the-dollar-idUSL8N2S31QY
https://www.investing.com/news/commodities-news/how-a-dispute-over-coal-nearly-sank-the-glasgow-climate-pact-2678945
https://www.investing.com/news/commodities-news/gold-up-2nd-straight-week-7th-day-in-row-on-inflation-sparkle-267837