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1. International precious metals futures generally closed higher. COMEX gold futures rose 0.54% to $5151.60 per ounce, and COMEX silver futures rose 0.35% to $83.77 per ounce. Tensions in the Middle East pushed up oil prices and inflation concerns. Escalating geopolitical risks increased demand for gold as a safe haven, while economic uncertainty in a high-interest-rate environment supported golds safe-haven status. 2. The WTI crude oil futures contract closed up 2.08% at $76.11 per barrel; the Brent crude oil futures contract rose 1.36% to $82.51 per barrel. Tensions in the Middle East continued to paralyze shipping in the Strait of Hormuz, further disrupting Middle Eastern oil and gas supplies. 3. London base metals rose across the board. LME tin rose 4.83% to $51,200/ton, LME aluminum rose 2.60% to $3,335.5/ton, LME nickel rose 2.51% to $17,550.0/ton, LME zinc rose 1.51% to $3,319.0/ton, LME lead rose 1.34% to $1,962.0/ton, and LME copper rose 0.56% to $13,027.5/ton. 4. All three major U.S. stock indexes closed higher. The Dow Jones Industrial Average rose 0.49% to 48,739.41 points, the S&P 500 rose 0.78% to 6,869.5 points, and the Nasdaq Composite rose 1.29% to 22,807.48 points. Amazon rose nearly 4%, and Cisco rose more than 2%, leading the Dow Jones gains. The Wind US Tech Big Seven Index rose 1.13%, with Tesla up over 3% and Facebook up nearly 2%. The Nasdaq China Golden Dragon Index rose 0.8%, with Zai Lab up over 8% and NIO up over 5%. Resilience in the US labor market and strong expansion in the service sector, coupled with easing energy transportation concerns, gradually restored market sentiment. European stock indices rebounded after a decline, with the German DAX rising 1.74% to 24205.36 points, the French CAC40 rising 0.79% to 8167.73 points, and the UK FTSE 100 rising 0.8% to 10567.65 points. Market sentiment recovered from geopolitical shocks, with the USs stance on safeguarding ships in the Strait of Hormuz easing energy transportation concerns, and a technical rebound driving the stock market higher.March 5 (Futures News) – According to foreign media reports, international oil prices closed flat on Wednesday after a volatile trading day. Escalating attacks on Iran by the United States and Israel have exacerbated regional tensions and paralyzed shipping in the Strait of Hormuz for the fifth consecutive day, disrupting oil and gas transport in the Middle East. Analysts say oil prices are high because the market is still struggling to cope with the prospect of a protracted war and ongoing supply disruptions. The United States has signaled a four- to five-week military operation; Iran is seeking to regionalize the conflict; and the crucial Strait of Hormuz has been effectively blocked. These developments could reverse the previously bearish supply and demand dynamics, pushing crude oil prices higher and nearing the $100 per barrel mark.Goldman Sachs CEO Roman: There is significant uncertainty surrounding the Middle East conflict; markets are attempting to assess the final outcome and its potential impact on energy and supply chains.Canada advises its citizens to avoid travel to Bahrain, Iran, Iraq, Israel and Palestine, Kuwait, Lebanon, Qatar, Syria, the United Arab Emirates, and Yemen.US-Israel-Iran Conflict: ① Iran 1. Irans Supreme Leader election is reportedly likely to be postponed until next week. 2. Iran claims to have hit the third THAAD anti-missile system deployed by the US military in the Middle East. 3. Irans Islamic Revolutionary Guard Corps launches the 18th round of "True Commitment 4" operations. 4. Iranian Revolutionary Guard Corps advisor: Time is in Irans favor in the war; Iran is prepared for a protracted war. 5. Market news: Iran has begun using underground missile silos. 6. Senior Iranian military official: If the US and Israel pursue regime change, we will target the Dimona nuclear reactor and all regional energy infrastructure. 7. According to Iranian state media: The commander of the Iranian Revolutionary Guard Corps Navy stated that Iran will target US and British ships flying any flag that transport goods for Israel in the Persian Gulf. 8. Iranian President: US and Israeli "aggression" leaves Tehran with no choice but to defend itself. 9. The Iranian military uses the "Hadid-110" high-speed drone for the first time in the conflict. 10. The Iranian Revolutionary Guard Corps stated that the intensity and scope of Iranian strikes will increase in the coming days. 11. Iran vehemently denies rumors of secret peace talks, accusing The New York Times of engaging in "psychological warfare." 12. Iranian forces attack the Israeli Ministry of Defense building and Ben Gurion International Airport, destroying seven radar systems. 13. According to Iranian state media, the farewell ceremony for Irans Supreme Leader Khamenei has been postponed; a new schedule will be announced later. 14. The Iranian Foreign Minister warned of "terrorist activities" in the border region with Iraq. 15. According to Axios, a US official and another source stated that Iran has sent messages to the US in recent days calling for dialogue, but the US has not responded. ②US 1. Reports indicate the White House will convene US defense industry giants to discuss increasing production. 2. A US submarine sinks an Iranian warship in the Indian Ocean. 3. The US extends the national emergency declaration against Iran. 4. US media: The US is on high alert to prevent potential Iranian cyberattacks. 5. US media: The CIA plans to provide weapons to Kurdish forces to overthrow the Iranian regime. 6. US Central Command: First combat use of long-range precision-strike missiles. 7. U.S. Central Command: The U.S. military has struck nearly 2,000 targets in Iran and destroyed 17 Iranian ships. 8. White House: Trump is discussing post-war Irans role and has no plans to deploy ground troops. 9. The U.S. Department of Defense has requested the Defense Industrial Base Alliance to submit proposals by March 20 to strengthen the mining or processing of nickel, graphite, rare earth elements, and other minerals. 10. U.S. Defense Secretary: The U.S. military cannot completely intercept all drones originating from Iran. 11. U.S. House Speaker: The U.S. and Iran are not at war. 12. U.S. Defense Secretary: NATOs interception of Iranian missiles will not trigger collective defense clauses. 13. Levitt read out the four objectives of Operation Epic Fury, which did not explicitly include regime change. 14. The U.S. ordered the evacuation of non-essential government personnel from its two consulates in Pakistan. 15. The U.S. State Department updated its travel advisory for Oman, allowing non-emergency government personnel to leave the country. 16. The U.S. State Department updated its travel advisory for Cyprus, authorizing non-emergency U.S. government employees and their families to leave Cyprus due to security risks. 17. The U.S. State Department updated its travel advisory for Pakistan, advising non-emergency U.S. government personnel to evacuate. 18. According to The Hill: The CIA has ordered the evacuation of all its branches within range of Iranian missiles. This evacuation was carried out following the attacks in Saudi Arabia. 19. U.S. media: The U.S. met with insurance brokerage firms to discuss how to allow ships to pass through the Strait of Hormuz again. ③ Israel 1. The Israeli military claims to have destroyed the defense and reconnaissance systems at Irans Mehrabad airport. 2. The Israeli Defense Minister threatened to assassinate "any" successor to Irans Supreme Leader. 3. U.S. media: Israels strikes against Irans domestic security system are intended to push for a public takeover of the situation. 4. According to Axios: Netanyahu inquired with the White House whether secret negotiations with Iran were underway. 5. The Israeli military eased wartime restrictions on public security, allowing some businesses to resume operations starting Thursday. 6. Israeli Army: Destroys Iranian rocket launch platform and defense system. ④ Other 1. Israeli media: Iraqi Kurdish forces begin ground offensive against Iran. 2. Israeli officials claim clashes between Kurdish forces and Iranian troops. 3. British Prime Minister Starmer: We are replenishing our air defense missile stockpile today. 4. Turkish Ministry of Defense: A ballistic missile launched from Iran and heading towards Turkish airspace has been destroyed by NATO air defense systems in the eastern Mediterranean. Missile debris landed in Hatay, Turkey, causing no casualties. 5. The UAE stated it has no intention of escalating the conflict with Iran. 6. The White House claimed Spain had agreed to cooperate with the US military, which Spain subsequently denied. 7. US-Asia oil transport costs hit a new high, halting some trades.

EUR/USD Is Anticipated To Fall Below 1.0950 Due To Market Optimism Regarding US Economic Prospects

Daniel Rogers

Apr 20, 2023 13:54

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The EUR/USD pair is expected to decline drastically below the near-term support level of 1.0950 during the Asian session. The major currency pair is attracting bids as the US Dollar Index (DXY) has shown a recovery move and surpassed the 102.00 level of resistance.

 

S&P500 futures have extended their losses during the Asian session in anticipation of the Federal Reserve's (Fed) decision to raise interest rates, which could undermine revenue guidance.

 

According to the Federal Reserve's (Fed) Beige Book minutes, economic activity is stable in the majority of districts. However, loans and advances to businesses and consumers have decreased due to stringent credit conditions imposed by commercial banks in the United States in order to prevent uncertainty in an unstable environment.

 

In the interim, Fed policymakers remain optimistic regarding the economic prognosis due to the labor market's tightness. As reported by Reuters, the president of the Federal Reserve Bank of St. Louis, James Bullard, advocated for the continuation of the central bank's policy tightening in view of the continued strength of labor market data. A Fed official added that the demand for labor has not yet diminished and that a robust labor market results in robust consumer spending.

 

Citi Group forecasts a fourth-quarter recession in the US economy due to the constrained US labor market. Previously, it was anticipated that the United States would enter a recession during the third quarter of 2023.

 

Investors are anticipating the release of Eurozone Consumer Confidence data. Preliminary Consumer Confidence (April) data is anticipated to improve from -19.2 to -18.5. This may be the result of persistently declining inflation in the Eurozone, which reduces the burden on households.