EUROPEAN COMMIDITIES UPDATE: USD’s initial influence dissipates on the latest COVID update
Analysis details (11:00)
- Crude benchmarks are little changed in what has until recently been a quiet session for the most part, once again the USD has dictated the bulk of the price action as the DXY struggles to sustain its fleeting moves into positive territory. While the USD’s downside has been supportive for much of the session, this has now been superseded by the latest negative China-COVID developments regarding Beijing City. Developments which have pressured the demand side of the equation and thus erased the modest USD-induced upside for crude. As it stands, WTI Dec’22 and Brent Jan’23 are lower by around USD 0.10/bbl and reside around USD 0.30/bbl from overnight lows.
- Prior to this, much of the focus has been on N. Korea firing an ICBM in APAC trade, a missile which ultimately landed in Japan’s EEZ and reportedly had sufficient range to reach the US range. While the launch has unsurprisingly drawn international condemnation and sparked retaliatory drills by the US and S. Korea, it did not spark any meaningful market reaction.
- Moving to metals, spot gold and silver are modestly firmer given the USD’s failure to gain a positive foothold. However, in contrast, base metals are pressured with LME Copper moving with USD 50 of the 8k mark following the aforementioned China developments.
18 Nov 2022 - 10:50- MetalsResearch Sheet- Source: Newsquawk
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