Gold back over $2K

 

“The first one gets the oyster, the second gets the shell.” – Andrew Carnegie 

 

 

 

HEADLINES

 

• U.S. dollar continues to garner support from Fed hike expectations 
• Gold hits 1-month high on rising inflation, Ukraine crisis
• Oil rises as Libya outages add to Russia supply fears
• Wall St flips into positive territory, BofA gains on strong earnings
• Musk targets Twitter board as company adopts 'poison pill'
• EURUSD Short Term: Downside favored

 

 

 

FOREX

 

U.S. dollar continues to garner support from Fed hike expectations 

 

The dollar edged higher on Monday in thin and choppy trading, in line with higher U.S. Treasury yields as investors braced for multiple half a percentage-point rate hikes this year from the Federal Reserve. 

Volume was light on the day with Hong Kong, European, and Australia, and New Zealand markets closed for Easter Monday.

The dollar index , a gauge of the greenback's value against six major currencies, rose 0.1% to 100.61. Late last week, the index hit its highest in two years.

 

 

 

COMMODITIES

 

Gold hits 1-month high on rising inflation, Ukraine crisis 

 

Gold rose more than 1% to a one-month high on Monday as concerns around the Russia-Ukraine conflict and rising inflationary pressures increased safe-haven bids for the precious metal. 

Gold’s advance came despite a jump in benchmark 10-year U.S. Treasury yields to the highest since December 2018, and a strong dollar, which usually dulls appetite for gold among overseas buyers.

Concerns over the economic hit from Covid-led restrictions in China also supported the metal’s prices, Meger said.

 

Oil rises as Libya outages add to Russia supply fears 

 

Oil rose on Monday in choppy trade, with Brent crude topping $113 a barrel, as outages in Libya deepened concern over tight global supply and the Ukraine crisis dragged on, offsetting concern over slowing Chinese demand.

Adding to supply pressures from sanctions on Russia, Libya’s National Oil Corp on Monday warned “a painful wave of closures” had begun hitting its facilities and declared force majeure at Al-Sharara oilfield and other sites.

 

 

 

STOCKS

 

Wall St flips into positive territory, BofA gains on strong earnings 

 

U.S. stocks moved into positive territory in early afternoon trading on Monday, as a profit beat from Bank of America rounded out earnings season for the big Wall Street banks and added further momentum to financial stocks. 

The upward swing reversed earlier declines caused by bond yields surging to three-year highs, highlighting investor nerviness on expectations of an aggressive tightening in monetary policy in the coming weeks and months.

 

Musk targets Twitter board as company adopts 'poison pill'

 

Elon Musk took a swipe at the board of Twitter on Monday after the social media company adopted a "poison pill" to protect itself from the second-biggest shareholder's $43 billion cash buyout offer.

"Board salary will be $0 if my bid succeeds, so that's ~$3M/year saved right there," Musk tweeted in response to a user's post criticizing the board.

Continuing his tirade against the company, Musk had launched a poll on Thursday asking his 80 million followers if "taking Twitter private at $54.20 should be up to shareholders, not the board", to which a large majority responded "Yes".

 

 

 

CHART

 

EURUSD Short Term: Downside favored 

Technical View: Short position below 1.078. Target 1.085. Conversely, break above 1.078, to open 1.0755.

Comments: The pair is expected to resume advance after correction. 

 

 

Source: Trading Central
 

 

 

 

CALENDAR

 

*Times in GMT

 

 

 

Source: FX Street Economic Calendar

 

SOURCES

https://www.reuters.com/business/japans-yen-bounces-briefly-after-kuroda-comments-2022-04-18/
https://www.cnbc.com/2022/04/18/gold-markets-russia-ukraine-war-china-economy.html
https://www.cnbc.com/2022/04/18/oil-markets-supply-concerns-ukraine.html
https://www.reuters.com/business/futures-slip-bond-yields-rise-bofa-up-strong-consumer-lending-2022-04-18/
https://www.reuters.com/business/musk-tweets-love-me-tender-days-after-twitter-takeover-offer-2022-04-18/