From Marc Chandler at Bannockburn Global Forex:
Overview: The US dollar is bid against most currencies today, encouraged not just by good news in the US and poor news out of China, where Covid is flaring up and new social restrictions are fared, while Macau has been lockdown for a week. The energy crisis in Europe is fanning fears of a recession before the ECB lift rates above zero. Japanese markets bucked the global move and advanced, which it often does after the government wins an upper house election. The Hang Seng, where many Chinese tech companies are listed fell nearly 2.8% to lead the losses. Europe’s Stoxx 600 is snapping a three-day advance and is off almost 0.5% near midday. The S&P 500 futures are off about 0.6%, while the NASDAQ futures warn that the four-day rally is at risk. It is off around 0.75%. The US 10-year yield is a little softer at 3.06%, while European benchmarks are 2-5 bp lower and peripheral premiums are edging wider.
Gold is near last week’s low (~$1732). The next chart support may be nearer $1720. August WTI met sellers around $105. A break of the $10150 area could signal a test on last week’s lows by $95. US natgas has recouped the pre-weekend loss of about 4.2%. A heatwave is spreading across much of the west and Midwest. Europe’s benchmark is 1% lower but appears to be consolidating after rising 15.3% last week. Iron ore is off 2.7% after falling 1.5% last week. September copper has fallen for the past five weeks and is off another 1.8% today. September wheat rallied more than 10% in the past two session and is extending its gains another 1.7% today....
....MUCH MORE
