EUROPEAN COMMODITIES UPDATE: Pullback in the Buck lifts commodities

Analysis details (09:55)

WTI and Brent front-month futures have been climbing as a result of the pullback in the Dollar which was triggered by Japan intervening in the FX market to reel in the JPY. Aside from that, complex-specific updates have been light this morning following the choppy price action yesterday. Desks suggest the overall sentiment across markets remain negative, citing the Fed tightening translating to a gloomier outlook, although supply concerns in the market do linger following President Putin’s “partial mobilisation” announcement yesterday. Markets today will likely take the cue from overall sentiment emanating from central bank action, barring any geopolitical updates. WTI Nov resides around USD 84.50/bbl (vs low 82.40/bbl), whilst Brent Nov trades north of USD 91/bbl (vs low 89.30/bbl). Elsewhere, spot gold also moved on the aforementioned Dollar action – with the yellow metal rising from a USD 1,655/oz intraday base towards closer to its 10 DMA (USD 1,685.87/oz), although the price remains within yesterday’s range. Over to base metals, a similar story, LME copper feels a boost from the Buck but fails to hold into gains north of USD 7,750/t, whilst Trafigura said they are seeing challenging short-term conditions in copper.

22 Sep 2022 - 09:55- Research Sheet- Source: Newsquawk