ACY Securities

Better-than-expected Initial US Unemployment Claims, easing to 218,000 from 227,000 previously lifted bond yields and the Dollar. A popular gauge of the Greenback’s value against a basket of 6 major currencies, the Dollar Index (DXY) pushed up to 104.15 (104.00).

Gold, the age-old symbol of wealth and stability, has recently faced a significant challenge, breaking below a crucial technical support level at $2.017 per ounce. This development sends a negative signal for both gold and silver.

When talking about the oil industry, we can see some recent disruptions in the Red Sea have brought about a notable shift in the dynamics of refined product markets. The resurgence in refining margins, triggered by these disruptions, prompted a re-evaluation of Goldman Sachs refined product crack forecasts.

Currency dynamics, whether through pegs, currency boards, or exchange-rate targets, rarely captivate the attention of FX markets unless there's a hint of abandonment. While most emerging markets have abandoned such mechanisms, recent years have witnessed notable incidents in developed markets.

Expectations for a March rate cut by the Federal Reserve have diminished, giving a boost to the US dollar. The currency has sustained its strength in the Asian trading session, breaking above the 200-day moving average at around 103.50.

An increase in US Non-Farms Payrolls, up 353,000 against economist’s estimates of 187,000 lifted the Dollar Index (DXY) 0.87% to 103.95 from 103.05 on Friday.

EUR/USD has dropped to 1.0800, influenced by the Fed and a cautious market. Today's focus is on the eurozone's January CPI release, expecting a dip to 2.7% YoY in the headline rate and 3.2% YoY in the core rate – the lowest since March 2022.

The performance of the dollar has seen a modest improvement, while equity markets exhibit a slight softening, influenced by the Federal Reserve's resistance to early easing and renewed attention on US regional banks.

After initially climbing on comments from Fed Chair Jerome Powell which ruled out a rate cut in March, the Dollar Index (DXY) eased to 103.00 from 103.50. Claims for Unemployment Benefits in the US rose to 224,000, up from 214,000 previously, and higher than forecasts at 212,000.

Federal Reserve Chairman Jerome Powell recently addressed several crucial points during his latest speech at this morning. He began by acknowledging that the benchmark interest rate is already in restrictive territory, setting the stage for discussions on the delicate balance needed in monetary policy.

Markets will remain cautious heading into the release of the US Fed FOMC meeting minutes and Press Conference from Fed Chair Jerome Powell. Friday’s US Payrolls report follows.

The landscape for precious metals has witnessed significant shifts since the beginning of the year. Platinum and palladium, traditionally integral components in catalytic converters for combustion engines, find themselves facing adversity due to the escalating trend toward electric cars.