LME blocks Russian metals trading

“The only way around is through.” – Robert Frost

 

 

 

HEADLINES

 

• Euro boosted by French election, dollar near two-year highs
• SEBI introduces new guidelines to evaluate risk value of gold, gold-related instruments
• Oil drops, Brent crude falls below $100 as China lockdowns spark demand fears
• S&P 500 drops more than 1% to start the week as higher rates send tech shares lower
• GBP/USD: Move above 1.3050 to clear the way towards 1.31 – Scotiabank
• GBPUSD Near Term: Downside favored

 

 

 

FOREX

 

Euro boosted by French election, dollar near two-year highs

 

The dollar held just below two-year highs against a basket of currencies on Monday as it continued to be supported by higher U.S. Treasury yields, while the euro rallied after French leader Emmanuel Macron beat far-right challenger Marine Le Pen in the country's first round of presidential voting.

The greenback has gained as Treasury yields soar on expectation of more aggressive tightening by the Federal Reserve, with benchmark 10-year note yields reaching 2.78% on Monday, the highest since January 2019.

 

 

 

COMMODITIES

 

Palladium extends gains after London hub suspends trading from Russia

 

Palladium steadied after jumping as much as 5% on Monday on supply concerns following a recent suspension on trading of the metal sourced from Russia in the London hub, while gold was buoyed by inflation fears.

Newly refined Russian platinum and palladium was suspended from trading in London from Friday, denying access to the metals' biggest trade hub because of the Ukraine war.

Spot gold rose 0.2% to $1,950.08 per ounce, after hitting its highest since March 14 at $1,968.91. U.S. gold futures gained 0.6% to $1,956.40.

 

 

Oil drops, Brent crude falls below $100 as China lockdowns spark demand fears

 

Oil prices slid Monday, accelerating two straight weeks of declines as lockdowns in China sparked demand fears.

China is the world’s largest oil importer, and the Shanghai area consumes roughly 4% of the country’s crude, according to Lipow.

WTI fell 1% last week while Brent declined 1.5%, with both contracts posting their fourth negative week in the last five.

 

 

 

STOCKS

 

MARKETS

S&P 500 drops more than 1% to start the week as higher rates send tech shares lower

 

Stocks fell on Monday as investors grew increasingly concerned a three-year high in the benchmark U.S. interest rate would start to slow the economy.

The 10-year Treasury yield jumped above 2.78% on Monday, levels not seen since January 2019, as the Federal Reserve braces investors for tighter monetary policy ahead.

The tech-heavy Nasdaq Composite dropped 1.6% on the session as investors see growth stocks taking the biggest hit from higher rates. The S&P 500 slipped 1.2% following a losing week last week. The Dow Jones Industrial Average lost 226 points, or 0.7%.

 

 

 

 

ANALYSIS

 

GBP/USD: Move above 1.3050 to clear the way towards 1.31 – Scotiabank 

 

“The GBP’s recovery from sub-1.30 stopped in the mid-1.30s that will continue to act as resistance with limited obvious resistance markers between this zone and the 1.31 area.” 

“Support after the 1.30 zone and ~1.2980 does not come in until psychological support at the mid-1.29s and more clearly at the 1.29 figure area.”

 

 

 

CHART

 

GBPUSD Near Term: Downside favored

Technical View: Short position below 1.314. Target 1.298. Conversely, break above 1.314, to open 1.318.

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

 

 

Source: Trading Central
 

 

 

CALENDAR

 

*Times in GMT

 

 

 

Source: FX Street Economic Calendar

 

 

SOURCES

 

https://www.reuters.com/business/macron-lead-lends-hand-euro-ahead-ecb-2022-04-11/ 
https://www.financialexpress.com/market/sebi-introduces-new-guidelines-to-evaluate-risk-value-of-gold-gold-related-instruments/2488257/
https://www.cnbc.com/2022/04/11/oil-drops-brent-crude-falls-below-100-as-china-lockdowns-spark-demand-fears.html
https://www.cnbc.com/2022/04/10/stock-futures-inch-higher-as-wall-street-looks-to-rebound-from-losing-week.html
https://www.fxstreet.com/news/gbp-usd-move-above-13050-to-clear-the-way-towards-131-scotiabank-202204111327