The euro zone's trade balance was in deficit for the third consecutive month

• The yen extended its decline on Monday and the euro and sterling came under pressure
• The British pound rose against the euro but was flat against the U.S. dollar on Friday
• Canadian retail sales bounced back beating expectations as shoppers ventured out to car dealerships

Forex market

The yen extended its decline today and the euro and sterling came under pressure, with investors awaiting Federal Reserve chair Jerome Powell's remarks later in the day and other central bank policymakers this week for monetary policy clues. 

The dollar climbed slightly on the yen to as much as 119.3 yen challenging the six-year peak of 119.39 touched on Friday. The dollar finished last week 1.6% higher versus the Japanese currency. Analysts said they thought moves in the pair could slow this week, but they predict the dollar will climb further on the yen in the coming months as the gap between the U.S. and Japanese interest rates widens.

Economic Calendar

Japan's inflation dynamic is very different from that experienced in other major economies we monitor, As a result, an exit from the ultra-easy monetary policy by the Bank of Japan remains a long way off in our view. In contrast, the U.S. central bank raised its key interest rate by 25 basis points last week for the first time since the pandemic. 

Traders' focus is now firmly on the speed and size of future rate hikes and the height of their eventual peak, as policymakers try to curb soaring inflation. A series of speeches by Fed policymakers this week, kicked off by Powell today, could provide some clues. At least one Fed speaker is due each day this week and Powell himself making another appearance on Wednesday. Markets will be watching to see the attitude of more dovish Fed policymakers, if they should sound hawkish it would reinforce expectations of more aggressive rate rises early in the Fed's path to higher rates. 

Trade Zone Week Ahead with Boris 21st – 25th March

Markets anticipate further rate increases at the Fed's subsequent meetings, with pricing indicating nearly a 90% chance of at least 75 basis points of increases across the Fed's May and June meetings. Such high expectations helped the dollar climb steadily in the early part of this year, but with several Fed increases already priced in, it could struggle to gain further traction. 

Given already-hawkish market expectations of Fed tightening, it is hard to foresee USD strength persisting beyond the near term. The dollar index, which measures the greenback against six peers, was a whisker firmer at 98.335. The euro was at $1.1038, 0.17% lower, and sterling was at $1.3156 off 0.16% with the future direction of both dependent on the war in Ukraine, which has hurt expectations of European economic growth. In the short term, speeches this week by several policymakers at the European Central Bank, including president Christine Lagarde, could also play a role.

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Euro-EUR

The single currency traded lower as the euro zone's trade balance was in deficit for the third consecutive month in January as surging energy prices led to a sharp increase in the value of imports, even before the Russian invasion of Ukraine prompted further price spikes. Germany's trade surplus fell by 78% from January 2021, France's deficit deepened. Overall, the EUR/USD traded with a low of 1.1001 and a high of 1.1117 before closing the day around 1.1049 in the New York session.

Yen-JPY

The Japanese Yen extended its decline today and the euro and sterling came under pressure, with investors awaiting Federal Reserve chair Jerome Powell's remarks later in the day and other central bank policymakers this week for monetary policy clues. The dollar finished last week 1.6% higher versus the Japanese currency. Overall, the USD/JPY traded with a low of 118.45 and a high of 119.38 before closing the day around 119.13 in the U.S session.

British Pound-GBP

The British Pound rose against the euro but was flat against the U.S. dollar on Friday, a day after the Bank of England increased its interest rate for the third consecutive meeting but softened its language over future tightening plans. Sterling was little changed against the dollar at $1.3147 but was still on track for its first positive week in four. Overall, the GBP/USD traded with a low of 1.3108 and a high of 1.3195 before closing the day at 1.3177 in the New York session.

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Canadian Dollar-CAD

The Canadian Dollar gained as retail sales bounced back in January, beating expectations, as shoppers ventured out to car dealerships and home improvement shops, official data showed Friday, though February retail sales likely fell. Retail sales increased 3.2% to C$58.94 billion ($46.7 billion) in January, led by higher sales of motor vehicles and parts. Overall, USD/CAD traded with a low of 1.2586 and a high of 1.2644 before closing the day at 1.2597 in the New York session.

Australian Dollar-AUD

The Australian Dollar has surged higher on the back of positive risk sentiment to start the week. Commodity markets continue to recover from the rout seen at the start of last week. The underlying fundamentals remain strong for the Aussie, although the RBA are not likely to be making a move on rates anytime soon. The domestic jobs data last week was a solid beat. Overall, AUD/USD traded with a low of 0.7358 and a high of 0.7416 before closing the day at 0.7410 in the New York session.

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​Euro-Yen EUR/JPY

EUR/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also issuing a bullish stance. The Relative Strength Index is above 61 and lies above the neutral zone. In general, the pair has gained 0.10%.

Sterling-Yen GBP/JPY

Currently, GBP/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is issuing a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 60 reading and lies above the neutral zone. On the whole, the pair has gained 0.72%.

Aussie-Yen AUD/JPY

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 76 reading and lies above the neutral region. In general, the pair has gained 0.97%.

Euro-Sterling EUR/GBP

This cross is currently trading above 14, 50 and below 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 53 and lies below the neutral region. Overall, the pair has lost 0.60%.

Sterling-Swiss GBP/CHF

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 45 and lies below the neutral region. In general, the pair has lost 0.28%.

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All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.

Trade Zone Week Ahead with Boris 21st – 25th March

Boris Schlossberg is back once again to give his take on the Trading Week Ahead this week. As expected, The Fed came out last week and approved a quarter percentage point interest rate rise,  its first since December 2018 and possibly one of many more to come as the U.S. faces up to rampant inflation. With that big decision now priced into the markets, all eyes will be on whether stocks will be able to sustain last week's fresh gains into a second week. 

There are still many headlines to be written and with the Ukrainian conflict entering its second month, there may be many more twists and turns. In today's Trade Zone Trading Week Ahead, we look ahead at potential moves in equities, oil, gold, Bitcoin and also discuss why forex might now be an interesting play.

When: Mar 23, 2022 1:00 PM - 1:30 PM EET 

What: Find out what is hot in indices, forex, crypto, gold, and oil

Join Our Live Market Update This Wednesday!

This live session is a unique opportunity to plan your next trade in real-time, as Boris and Kathy look ahead at the potential moves taking shape as the weekend approaches. Find out what is hot in indices, forex, crypto, gold and oil, as they discuss the financial assets they are watching, as well as the key levels to look out for when placing your stops.

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Elliott Wave trade idea for S&P500 and Dow Jones UPDATE

Hello traders and investors. I am Radi Valov, a professional trader and today I will share with you you a quick update of my Elliott Wave analysis of US indices. Those of you who have read my previous Elliott Wave analysis know that since the evening of February 24 I have released an update for an important bottom in S&P 500 and Dow Jones industrial average.

09.03.2020: Elliot Waves trading idea for S&P500 and Dow Jones UPDATE

25.02.2022: Elliot Waves trading idea for SP500 DowJones and Nasdaq 

15.02.2022: Elliot waves trading idea for SP500 and the Dow Jones 

04.02.2022: Elliott waves signal for S&P500  

31.01.2022: Elliott waves signals for SP500 and Dow Jones

S&P500-Daily Chart

Despite the negative events in the recent weeks and even more negative sentiment in the market, last week of all US indices only Nasdaq made a new bottom. This divergence is usually observed towards the end of movements and is a great indicator.

S&P500-H4 Chart

After the bottom on February 24, I consider the rise in the S&P 500 and the Dow Jones as the leading diagonal for wave 1 (with red in the graph) and the deep retest of the bottom in both indices as wave 2. I must note that market sentiment during wave 2 was more negative than when it reached the bottom, which is a great confirmation of the bullish scenario and a very common phenomenon observed in the second waves.

We are currently developing at the beginning of wave 3 and I expect the upward movement to continue this week without significant adjustment to the area around 3550-3580 for S&P 500 and 35500-35800 for the Dow Jones.

In the medium term, according to my preferential Elliott Wave analysis, the S&P 500 / Dow Jones industrial average will move in the upward price channel on a daily chart and in the second half of the year, we will have new historical highs. The potential target for wave 5 is the area around 4970-5200 for S&P 500 and 37700-39000 for  Dow Jones.

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All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.

Traders stayed optimistic for an end to the war in Ukraine as talks continued

• The U.S. dollar headed for its first down week in six versus major peers today
• Investors continued to assess the impact of the start of the Fed's rate tightening cycle this week
• Sentiment also improved after Russia avoided default on dollar-denominated debt

Forex market

The U.S dollar fell yesterday and hit its lowest in a week as investors digested the Federal Reserve's monetary policy outlook a day after the U.S central bank's expected rate hike, while the euro rose as investors kept an eye on Russia-Ukraine talks. 

The Fed's monetary policy turned hawkish with its quarter-percentage-point rate increase Wednesday and projection that the federal funds rate would reach a range of 1.75% to 2% by the end of 2022 and 2.8% next year, but the central bank did not deliver a tougher surprise that some investors might have been expecting. 

Economic Calendar

The strongest message yesterday was that the Fed was going to hike and it was primarily concerned with elevated inflation pressures. The market is kind of taking the bet that the Fed has this view now but that could shift in the coming quarters, and there's a lot already priced into the short-term interest rate markets for the Fed this year. Some of that is being pulled back, and that's one of the reasons why the dollar has come under pressure. 

The dollar index, which measures the greenback's strength against six trading currencies, was down 0.5% at 97.980 and hit its lowest in a week. The index remains up 2.4% for the year so far. The euro was up 0.5% at $1.1095 and touched its highest since early March. 

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Officials from both sides of the Ukraine-Russia conflict met again for peace talks, but they said their positions remained far apart. The Russian rouble rose in Moscow trading and was slightly weaker offshore. On foreign exchanges, rouble bids were indicated at 96 per dollar and traded at 104, down 3.9%. The commodity-sensitive Australian dollar was up 1.2% against the U.S dollar. Oil prices climbed 8% yesterday with a renewed focus on supply shortages in the coming weeks due to sanctions on Russia. 

The euro rose against the British pound and hit its highest since early February. The Bank of England raised interest rates as expected, but softened its language on the need for further increases. Money markets are pricing less than 120 bps of rate hikes by year-end. The dollar was down 0.1% against the Japanese yen. Earlier yesterday, the Bank of Japan Governor said Japan's inflation was unlikely to hit a central bank target of 2%, even accounting for rising energy costs, making the case for keeping monetary policy ultra-easy.

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Euro-EUR 

The single currency was up 0.5% and touched its highest since early March. Officials from both sides of the Ukraine-Russia conflict met again for peace talks, but they said their positions remained far apart. The euro rose against the British pound and hit its highest since early February. The Bank of England raised interest rates as expected. Overall, the EUR/USD traded with a low of 1.1006 and a high of 1.1136 before closing the day around 1.1089 in the New York session.

Yen-JPY

The Japanese Yen steadied as the U.S dollar headed for its first down week in six today, languishing near a one-week low, as investors continued to assess the impact of the start of the Federal Reserve's rate tightening cycle this week. Traders stayed optimistic for an end to the war in Ukraine as talks continued between Moscow and Kyiv. Overall, the USD/JPY traded with a low of 118.34 and a high of 119.00 before closing the day around 118.57 in the U.S session.

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British Pound-GBP 

The British Pound dropped yesterday after the Bank of England raised interest rates but sounded less certain about the pace of further tightening to combat soaring inflation. Sterling had gained before the BoE announced its Monetary Policy Committee had voted 8-1 to raise rates 25 basis points to 0.75%. The lone dissenter voted to keep rates on hold. Overall, the GBP/USD traded with a low of 1.3085 and a high of 1.3209 before closing the day at 1.3146 in the New York session.

Canadian Dollar-CAD 

The Canadian Dollar strengthened against its U.S counterpart yesterday as falling measures of currency market volatility showed that investors were growing more confident holding riskier, commodity-linked currencies rather than the greenback. Canadian dollar 3-month implied volatility has declined to 7.175% from 8.15% earlier this month. Overall, USD/CAD traded with a low of 1.2610 and a high of 1.2696 before closing the day at 1.2625 in the New York session.

Australian Dollar-AUD

The Australian Dollar in two days propelled more than 2.7% towards the 0.7400 area. First, Beijing announced that it will implement measures to boost the country's economic growth. A stable and healthy expansion in China benefits Australia, considering the strong trade relationship between the two nations. The strength of the Australian labor market has also supported AUD/USD. Overall, AUD/USD traded with a low of 0.7138 and a high of 0.7235 before closing the day at 0.7231 in the New York session.

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Euro-Yen EUR/JPY

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also issuing a bearish stance. The Relative Strength Index is above 40 and lies below the neutral zone. In general, the pair has gained 0.38%.

Sterling-Yen GBP/JPY

Currently, GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 42 reading and lies below the neutral zone. On the whole, the pair has lost 0.12%.

Aussie-Yen AUD/JPY

Currently, the cross is trading above 14, 50 and below 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 54 reading and lies above the neutral region. In general, the pair has gained 1.06%.

Euro-Sterling EUR/GBP

This cross is currently trading above 14, 50 and below 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 46 and lies below the neutral region. Overall, the pair has gained 0.51%.

Sterling-Swiss GBP/CHF

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 40 and lies below the neutral region. In general, the pair has lost 0.41%.

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All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.

Canada's annual inflation rate accelerated in February to hit a fresh 30-year high

•  The dollar fell on Wednesday after the U.S. Federal Reserve moved to a hawkish monetary policy
• The yen was pinned to a six-year low on the dollar today in the Asian session
• The U.S Federal Reserve raised rates for the first time since 2018

Forex market

The dollar fell in yesterday’s trading session after the U.S Federal Reserve moved to a hawkish monetary policy but without delivering a tougher surprise that might have added to its weeks-long momentum. 

The dollar index, which had gained 3% since the start of the Russia-Ukraine war on Feb. 24 and 10% since May, fell as much as 0.6% on Wednesday as traders parsed Fed statements following a two-day meeting. There were no additional hawkish surprises. 

The dollar lost value to the euro and the British pound, both of which had been up earlier in the day in the hope for a compromise in Russia and Ukraine peace talks. The euro and pound both gained 0.7%, with the euro trading at $1.1032. The Fed raised interest rates by the expected quarter of a percentage point and projected its policy rate would reach a range of 1.75% to 2% by the end of this year and 2.8% next year. 

Economic Calendar

The decline in the dollar index was surprising and could reflect disappointment that the Fed rhetoric was not more hawkish. The Fed did project the equivalent of quarter-percentage-point rate increases at each of its six remaining policy meetings this year but that was in line with market expectations for rates. Yields on 10-year U.S Treasuries reached 2.2% and two-year yields rose to 1%, flattening the yield curve. 

The Bank of England meets later in today’s session and markets expect it to raise rates by another quarter-point. The Bank of Japan is expected on Friday to leave ultra-loose policy settings in place. The dollar rose 0.4% on the Japanese yen and during the day touched 119.13 yen, the highest in more than five years. The commodity-sensitive Australian dollar added 1.3% to $0.7288.

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Euro-EUR

The single currency gained as the dollar fell after the U.S Federal Reserve moved to a hawkish monetary policy but without delivering a tougher surprise that might have added to its weeks-long momentum. The dollar index, which had gained 3% since the start of the Russia-Ukraine war on Feb. 24 and 10% since May, fell as much as 0.6% yesterday. Overall, the EUR/USD traded with a low of 1.0884 and a high of 1.0665 before closing the day around 1.0934 in the New York session.

Yen-JPY

The Japanese Yen was pinned to a six-year low on the dollar today, as a U.S rate hike and hawkish outlook underscored just how far the BoJ is likely to lag worldwide policy tightening, while stellar jobs data lifted the Australian dollar. Increasing the target federal funds rate by a quarter-percentage point, the U.S Fed raised rates for the first time since 2018. Overall, the USD/JPY traded with a low of 114.63 and a high of 115.53 before closing the day around 114.83 in the U.S session.

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British Pound-GBP 

The British Pound edged higher against the U.S dollar yesterday supported by optimism on negotiations between Ukraine and Russia, though a Bank of England rate decision capped gains. New talk of compromise from both Moscow and Kyiv on status for Ukraine outside of NATO lifted hope for a potential breakthrough after three weeks of the war. Overall, the GBP/USD traded with a low of 1.3200 and a high of 1.3353 before closing the day at 1.3238 in the New York session.

Canadian Dollar-CAD 

The Canadian Dollar traded higher as Canada's annual inflation rate accelerated in February to hit a fresh 30-year high, with broad price gains hitting consumers on all fronts, data showed yesterday, bolstering the case for the Bank of Canada to move forcefully on rates. At 5.7%, the gain beat analysts' estimates of a rise of 5.5% and is the highest since August 1991. Overall, USD/CAD traded with a low of 1.2667 and a high of 1.2789 before closing the day at 1.2735 in the New York session.

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Australian Dollar-AUD

The Australian Dollar gained as Australian employment surged in February as the economy recovered surprisingly quickly from an Omicron outbreak, driving unemployment down to lows not seen since 2008 and piling on the pressure for an early rise in interest rates. Figures from the Australian Bureau of Statistics today showed employment jumped by 77,400 in February from a month earlier. Overall, AUD/USD traded with a low of 0.7138 and a high of 0.7235 before closing the day at 0.7231 in the New York session.

Euro-Yen EUR/JPY 

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also issuing a bearish stance. The Relative Strength Index is above 40 and lies below the neutral zone. In general, the pair has lost 1.70%.

Sterling-Yen GBP/JPY

Currently, GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 42 reading and lies below the neutral zone. On the whole, the pair has lost 1.35%.

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Aussie-Yen AUD/JPY

Currently, the cross is trading above 14, 50 and below 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 54 reading and lies above the neutral region. In general, the pair has gained 0.06%.

Euro-Sterling EUR/GBP

This cross is currently trading above 14, 50 and below 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 46 and lies below the neutral region. Overall, the pair has lost 0.35%.

Sterling-Swiss GBP/CHF

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 40 and lies below the neutral region. In general, the pair has lost 0.86%.

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All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.

A strong U.S dollar is a key element exerting pressure on oil prices

US stock markets: The three main Wall Street stock indexes rallied yesterday, a day before an expected interest rate hike by the U.S Federal Reserve, while oil prices dropped 7% in hopes of an end to the conflict in Ukraine. 

Investors are expecting the U.S central bank to raise interest rates for the first time in three years by at least 25 basis points amid surging prices. Traders will also be closely watching the Fed for details on how it plans to end its bond-buying program. 

Ahead of the Fed's meeting on Wednesday, the benchmark 10-year note yields eased from more than two-year highs and were last at 2.1544%, after earlier rising to 2.169%, the highest since June 2019. I think the big event this week is going to be Fed discussing what they're going to do with the portfolio and how fast they're going to move. 

Economic Calendar

The expectation in the short term of course is going to be the raising of the rates by a quarter of a percent. The Dow Jones Industrial Average rose 1.82%, the S&P 500 gained 2.14% and the Nasdaq Composite added 2.92%.

Dow Jones Industrial Average

The Dow Jones Industrial Average gained 1.82%. The best performers of the session on the Dow Jones Industrial Average were Walt Disney Company, which rose 4.01% or 5.17 points to trade at 134.20 at the close. Meanwhile, Microsoft Corporation added 3.87% or 10.71 points to end at 287.15 and Procter & Gamble Company was up 3.64% or 5.28 points to 150.33 in late trade. The worst performers of the session were Chevron Corp, which fell 5.00% or 8.34 points to trade at 158.38 at the close. Dow Inc. declined 2.37% or 1.43 points to end at 58.85 and Caterpillar Inc. was up 0.44% or 0.95 points to 216.39.

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NASDAQ 100

The NASDAQ index gained 2.92%. The top performers on the NASDAQ Composite were Sonim Technologies Inc. which rose 103.33% to 1.22, Incannex Healthcare Ltd ADR which was up 48.47% to settle at 34.00 and Jaguar Health Inc. which gained 44.53% to close at 0.55. The worst performers were Evolv Technologies Holdings Inc. which was down 43.14% to 1.70 in late trade, Cepton Inc. which lost 28.79% to settle at 4.28 and Better Therapeutics Inc. which was down 22.96% to 3.12 at the close.

Oil price - Crude Oil market, Brent Oil market

Oil prices rose over $1, bouncing back after earlier declines, as Russia's invasion of Ukraine continues to stoke volatile trading with ceasefire talks the latest market trigger. U.S crude rose 45 cents, or 0.5%, at $96.89 a barrel. 

Ukrainian President said in a video address released early today that the positions of Ukraine and Russia at peace talks were sounding more realistic, but more time was needed. Traders are awaiting more clues from ceasefire talks after a two-day selloff in the oil markets, but the crude prices may continue being under pressure as high inflation will eventually drag on economic growth and weaken demands.

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A strong U.S dollar is a key element exerting pressure on oil prices and investors expect the U.S Fed to adopt a more hawkish monetary policy to curb flaring inflation. Analysts expect the Fed to raise its benchmark overnight interest rate by a quarter of a percentage point at the end of its two-day policy meeting today.

Precious and Base Metals - Gold price, Silver price, Palladium price Precious and Base Metals

Gold extended its slide yesterday as ceasefire talks between Russia and Ukraine reduced demand for safe-haven assets, while bets that the U.S. Federal Reserve may raise interest rates for the first time in three years added to pressure on bullion. Spot gold was down 1.3% at $1,926 per ounce, after earlier touching its lowest since March 2 at $1,920.36. 

U.S gold futures fell 1.7% to $1,927.80. Some faint hopes that talks between Ukraine and Russia may somehow lead to a de-escalation that has affected safe-haven demand for gold. While gold is seeing a bit of a lull, the Ukraine situation is still unfolding, with market volatility and uncertainty likely to remain quite high. 

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European stocks fell more than 2% as concerns about surging coronavirus cases in China added to nerves ahead of the Fed policy meeting. The Fed is expected to raise borrowing costs by a quarter of a percentage point at the end of its two-day meeting today. The impending announcement has kept U.S. 10-year treasury yields elevated and put pressure on gold since rising U.S. interest rates increase the opportunity cost of holding non-yielding bullion. 

The first-rate hike move from the U.S. quite often signals a low point in gold, so we’ll see what kind of signal they send tomorrow, and how hawkish their statement is, which will probably determine the short-term outlook from here. Meanwhile, spot palladium was up 1.1% at $2,412.55 per ounce, after its weakest session in two years on Monday on easing supply fears. 

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Palladium is a notoriously low-liquidity market, Hansen said, and with the war premium being taken out of commodity markets, palladium has not been shielded. Spot silver shed 1.6% to $24.62 per ounce, while platinum slipped 1.6% to $1,013.58.

Traditional Agricultures - Corn futures, Wheat futures,  Soybean futures

Wheat futures gained yesterday, supported as export curbs by Russia fuelled concerns about global supply, while traders see the recent decline as an opportunity for bargain buying. Soybeans fell in reaction to investor worries that renewed coronavirus outbreaks in China could curb demand, while corn traded both sides of even as trade awaited talks between Moscow and Kyiv that could progress towards a ceasefire. Corn and soybeans were pressured by outside markets with crude oil, falling steeply.

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All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.