We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • 🇺🇸 Markit Manufacturing PMI Final Actual: 39.8 Expected: 39.8 Previous: 36.1 https://www.dailyfx.com/economic-calendar#2020-06-01
  • GBPUSD currently trades either side of 1.2400, continuing last week’s push higher. Get your $GBPUSD technical analysis from @nickcawley1 here: https://t.co/PIzd1KlcMC https://t.co/AXo8x8qr07
  • Heads Up:🇺🇸 ISM Manufacturing Prices due at 14:00 GMT (15min) Expected: 36 Previous: 35.3 https://www.dailyfx.com/economic-calendar#2020-06-01
  • Heads Up:🇺🇸 Construction Spending MoM due at 14:00 GMT (15min) Expected: -6.5% Previous: 0.9% https://www.dailyfx.com/economic-calendar#2020-06-01
  • Heads Up:🇺🇸 ISM Manufacturing PMI due at 14:00 GMT (15min) Expected: 43.6 Previous: 41.5 https://www.dailyfx.com/economic-calendar#2020-06-01
  • 🇨🇦 Markit Manufacturing PMI Actual: 40.6 Previous: 33 https://www.dailyfx.com/economic-calendar#2020-06-01
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.27% FTSE 100: 1.11% France 40: 1.10% Wall Street: -0.13% US 500: -0.18% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/SSvDzENQ1m
  • Heads Up:🇺🇸 Markit Manufacturing PMI Final due at 13:45 GMT (15min) Expected: 39.8 Previous: 36.1 https://www.dailyfx.com/economic-calendar#2020-06-01
  • RT @C_Barraud: 🇨🇳 🇺🇸 #China Halts Some U.S. #Farm Imports, Threatening #Trade Deal - Bloomberg https://t.co/0nh9FVhg22
  • Heads Up:🇨🇦 Markit Manufacturing PMI due at 13:30 GMT (15min) Previous: 33 https://www.dailyfx.com/economic-calendar#2020-06-01
Copper Rallies with Stable Yuan, Oil Retraces Post Sanction-Lift

Copper Rallies with Stable Yuan, Oil Retraces Post Sanction-Lift

2016-01-18 05:06:00
Nathalie Huynh,
Share:

Talking Points:

  • Gold interests returned, breaks correlation to other safe havens
  • Oil retraced after knee-jerk fears on prospective Iranian oil
  • Copper rallied on China’s moves to keep yuan stable

Risk assets staged a small rally in the morning Asia following oil’s retracement from recent bottom at 28.36. China central bank PBoC confirmed the weekend news that foreign banks are now subject to required-reserve-ratio (RRR) on offshore yuan (CNH) deposits. This policy aims to stabilize the currency thus initiated strength in yuan and broad domestic market.

Oil price sank to a fresh low of 28.36 before Asia market open due to news of Iran’s sanction being lifted on Sunday. Both WTI and Brent quickly retraced up to Friday’s close before settling in the proximity, while still subject to macro volatility.

Brent oil could look to lower prices as Gulf and OPEC exporters reel from an entry of Iranian oil. Iran’s deputy oil minister reportedly said on Sunday that the country aims to bring output to 500,000 barrels a day.

Projected Brent prices over 7 years ahead have shifted lower and flatter today versus a month ago.

Copper Rallies with Stable Yuan, Oil Retraces Post Sanction-Lift

Copper price rallied over 1 percent today as part of an oil-led Asian rally, prior to the all-important China’s GDP report tomorrow. The moves by China to reduce offshore-onshore yuan gap (CNH-CNY spread) via wider RRR application, and today’s stronger CNY fix, proved positive to industrial metals. Stronger, more stable yuan will increase China’s purchasing power and might boost demand.

Gold price holds on to Friday’s recovery, resiliently so in the face of a small Asian rally. A risk flight immediately prior to current retracement may account for these lingering interests. Moreover, gold seems to detach from the retreat of safe haven currencies like JPY, CHF, a sign that investors’ optimism may build up again. Bloomberg data shows an increase in gold holdings via SPDR, ETF, and iShare over the last week, and last month.

GOLD TECHNICAL ANALYSIS – Gold price ticked up on a second day today as momentum bounced. Range trading prevails between a recent bottom at 1071.57 and top of early 2016 rally at 1113.08. Near-term bias is focused on upside, until momentum signals indicate otherwise.

Copper Rallies with Stable Yuan, Oil Retraces Post Sanction-Lift

Daily Chart - Created Using FXCM Marketscope

COPPER TECHNICAL ANALYSIS – Copper price trades sideways on a third day despite intraday volatility and a fresh multi-year low at 1.9355. On a daily basis the metal remains fragile to downward pressure, so long as new lows are established frequently. Resistance at top is around 2.0020 past support and also 10-day moving average.

Copper Rallies with Stable Yuan, Oil Retraces Post Sanction-Lift

Daily Chart - Created Using FXCM Marketscope

CRUDE OIL TECHNICAL ANALYSIS WTI oil retraced up to previous close, after knee-jerk reaction to upside supply risk led to a new low at 28.36. Oil is the weakest link among commodities at the moment, with little built-up momentum. Hence further descent is not ruled out. The bears could let stops trail resistance and 10-day moving average at 31.83.

Copper Rallies with Stable Yuan, Oil Retraces Post Sanction-Lift

Daily Chart - Created Using FXCM Marketscope

--- Written by Nathalie Huynh, Currency Strategist for DailyFX.com

Contact and follow Nathalie on Twitter: @nathuynh

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.