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Oil price dumps on China lockdowns

"The price of a commodity will never go to zero. When you invest in commodities futures, you are not buying a piece of paper that says you own an intangible of the company that can go bankrupt." – Jim Rogers.

 

 

HEADLINES

 

 

  • Yen at 6-yr low vs dollar as BOJ moves against rising bond yields
  • Oil slides more than 8% as Shanghai lockdown prompts demand fears
  • Gold falls on firmer U.S. yields, dollar; palladium sinks 8%
  • S&P 500 rises in final hour of trading, Nasdaq up 1%
  • EUR/USD to move downward to the 1.05 level over next 12 months – Danske Bank
  • AUDUSD Near Term: Upside favored

 

 

FOREX

 

Yen at 6-yr low vs dollar as BOJ moves against rising bond yields

 

The dollar surged to a six-year high versus the yen after the Bank of Japan moved to contain rising bond yields, while U.S. Treasury yields soared to new multiyear highs, highlighting the divergence in tightening cycles between the BOJ and other major central banks.

Against the yen, the dollar surged as much as 2.5% , and was last up 1.33% at 123.715 yen, the highest since August 2015 and the biggest one-day rise since March 2020. Yen losses in March surpass 7% and the currency is set for its biggest monthly and quarterly falls since 2016.

 

 

 

COMMODITIES

 

Oil slides more than 8% as Shanghai lockdown prompts demand fears

 

Oil declined more than 8% at the lows of the day on Monday as concerns over new lockdowns in China and the potential impact on demand sent prices tumbling.

West Texas Intermediate crude futures, the U.S. oil benchmark, slipped 8.25% to trade at $104.50 per barrel. International benchmark Brent crude traded 7.4% lower at $111.61 per barrel. However, both contracts recovered some losses during afternoon trading on Wall Street.

 

 

Gold falls on firmer U.S. yields, dollar; palladium sinks 8%

 

Gold retreated on Monday on pressure from higher U.S. Treasury yields and a firmer dollar, while easing supply concerns ahead of Russia-Ukraine peace talks sent autocatalyst palladium tumbling nearly 8%.

Benchmark 10-year bond yields hit their highest since April 2019 on the day, buoyed by bets of aggressive interest rate hikes by the Federal Reserve to fight soaring inflation.

 

 

 

STOCKS

 

S&P 500 rises in final hour of trading, Nasdaq up 1%

 

The S&P 500 rose on Monday, following two straight weeks of gains for the averages as oil prices moved sharply lower. The Dow fell about 10 points. The S&P 500 rose 0.45%. The technology-focused Nasdaq Composite rose roughly 1%, thanks to an 8% jump in Tesla. Energy stocks slid alongside the price of oil. Chevron and Exxon Mobil fell 2% and 3.3%, respectively.

 

 

 

ANALYSIS

 

EUR/USD to move downward to the 1.05 level over next 12 months – Danske Bank

 

“We revise down our EUR/USD forecast in 12M from 1.08 to 1.05.”

“Global manufacturing is slowing, valuations shows risks are to the downside for spot and the near-term consequences of the war in Ukraine will likely be a further strengthening of the USD. We thus continue to expect EUR/USD can drop further in this environment.”

 

 

 

CHART

 

AUDUSD Near Term: Upside favored

 

Technical View: Long position above 118. Target 119.5. Conversely, break below 118, to open 117.5.

Comments: The pair remains supported. Further advance favored.

 

 

Source: Trading Central
 

 

 

CALENDAR

 

*Times in GMT

 

 

 

Source: FX Street Economic Calendar

 

 

SOURCES

 

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/eur-usd-to-move-downward-to-the-105-level-over-next-12-months-danske-bank-202203281256
https://www.cnbc.com/2022/03/27/stock-market-futures-open-to-close-news.html
https://www.cnbc.com/2022/03/28/oil-slides-7percent-as-shanghai-lockdown-prompts-demand-fears.html
https://www.cnbc.com/2022/03/28/gold-markets-dollar-ukraine-russia-talks.html
https://www.cnbc.com/2022/03/28/forex-markets-japanese-yen-bank-of-japan-bitcoin.html
 

 

 

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