- German IFO current conditions: 119.3 vs. 118.3 expected, 118.4 previous
- German IFO business climate: 112.3 vs. 111.1 expected, 111.1 previous
- Euro Zone private loans y/y: 2.3% as expected, 2.2% previous
The pound was broadly in demand during today’s morning London session while the Greenback had a more mixed performance after tumbling during the earlier session.
Commodities crumble, but precious metals resist – Commodities were mostly in the red during the morning London session. Precious metals were a clear exception, though.
Base metals got a good hammering.
- Copper was down by 1.71% to $2.586 per pound
- Nickel was down by 1.44% to $9,737.50 per dry metric ton
Oil benchmarks, meanwhile, got torpedoed.
- U.S. crude oil was down by 1.06% to $47.46 per barrel
- Brent crude oil was down by 0.81% to $50.51 per barrel
Precious metals were in demand, however.
- Gold was up by 0.77% to $1,258.15 per troy ounce
- Silver was up by 1.29% to $17.977 per troy ounce
Market analysts blamed crushed hopes over Trump’s fiscal stimulus plans, especially Trump’s trillion dollar infrastructure program, for the broad-based slide in commodities. Precious metals were an exception, though, very likely because of safe-haven demand.
Other than that, market analysts also point to doubts that OPEC will extend its oil cut deal as another factor for the slide in oil prices.
Gloomy day in Europe – Europe is starting the new trading week with feelings of doom and gloom, as European equities bled out.
- The pan-European FTSEurofirst 300 was down by 0.69% to 1,475.75
- Germany’s DAX was down by 0.96% to 11,948.50
- The blue-chip Euro Stoxx 50 was down by 0.59% to 3,425.50
U.S. equity indices were also in the red, indicating that the gloomy mood may carry over into the U.S. session.
- S&P 500 futures were down by 0.85% to 2,324.75
- Nasdaq futures were down by 0.76% to 5,337.88
Market analysts point out that mining shares were the main losers. And as noted earlier, base metals in particular, were slumping because of worries over Trump’s fiscal stimulus plans.
Major Market Mover(s):
GBP – The pound got bid broadly higher before the morning London session even rolled around. The pound then continued to climb higher across the board during the course of the morning London session, even though there were no apparent catalysts.
Some market analysts were pointing to the Greenback’s overall weakness, which pushed GBP/USD higher while apparently dragging other pound pairs higher. However, that’s not a sufficient explanation, since the Greenback had a more mixed and steady performance during the session.
However, with risk events for the pound this week, triggering Article 50 of the TEU in particular, it’s possible that some pound bears who opened preemptive positions were just unwinding their bets ahead of Brexit D-Day on March 29.
GBP/USD was up by 47 pips (+0.38%) to 1.2519, GBP/JPY was up by 50 pips (+0.36%) to 138.73, GBP/CHF was up by 47 pips (+0.39%) to 1.2399
- 5:15 pm GMT: Chicago Fed President Charles Evans has a speech
- 10:00 pm GMT: RBA Assistant Governor Guy Debelle will speak
- 10:30 pm GMT: Dallas Fed President Robert Kaplan is scheduled to speak
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical weeks!