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On December 30th, according to foreign media reports, soybean oil futures on the Chicago Board of Trade (CBOT) closed higher on Monday, with the benchmark contract rising 0.1%, mainly reflecting stronger crude oil prices. Traders said that rising international crude oil futures and active arbitrage trading involving buying soybean oil and selling soybean meal supported the rise in soybean oil prices. However, declines in other vegetable oils, such as Malaysian palm oil, limited the upside potential of the soybean oil market.Meta Platforms (META.O): Manus talent will join the team to continue operating and selling Manus services and will integrate Manus services into the product.1. The WTI crude oil futures contract closed up 1.92% at $57.83 per barrel; the Brent crude oil futures contract rose 1.66% to $61.24 per barrel. Geopolitical tensions disrupted global energy markets. Peace talks between Russia and Ukraine failed to achieve a breakthrough, while Kazakhstans December crude oil production fell by about 6% due to Ukrainian drone attacks disrupting exports, exacerbating market concerns about supply and pushing oil prices higher. 2. Most London base metals fell. LME lead rose 0.73% to $2009.0 per tonne, LME copper rose 0.21% to $12187.5 per tonne, LME nickel fell 0.16% to $15760.0 per tonne, LME zinc fell 0.21% to $3084.0 per tonne, LME aluminum fell 0.34% to $2950.5 per tonne, and LME tin fell 6.55% to $40010.0 per tonne. 3. On Monday, spot silver broke through the $80/ounce mark for the first time in early Asian trading, quickly surging to near $84, a gain of nearly 6%. However, the market then reversed course sharply, with the price falling by more than 11% at one point during the New York session. The silver plunge dragged down other precious metals, with spot palladium plummeting by as much as 17%, spot platinum falling by 15%, and spot gold falling by more than 5%. Domestically, platinum and palladium both hit their daily limit down; Shanghai silver plunged at the end of the session, erasing all of its intraday 10% gains, and further fell by 8.74% in the night session; Shanghai gold closed down nearly 1%, and further fell by 4% in the night session. COMEX gold futures closed down 4.45% at $4350.2/ounce, and COMEX silver futures closed down 7.2% at $71.64/ounce. 4. Domestic futures contracts showed mixed performance, with asphalt, methanol, and low-sulfur fuel oil rising by more than 1%, while coated paper, corn, iron ore, soybean meal, and coking coal saw slight increases. In terms of declines, pulp, benzene, BR rubber, and TSR20 rubber all fell by more than 1%, while PVC, caustic soda, and rubber saw slight decreases. 5. US Treasury yields fell across the board: the 2-year Treasury yield fell 2.45 basis points to 3.450%, the 3-year Treasury yield fell 2.52 basis points to 3.502%, the 5-year Treasury yield fell 3.11 basis points to 3.663%, the 10-year Treasury yield fell 1.95 basis points to 4.108%, and the 30-year Treasury yield fell 2.02 basis points to 4.797%. 6. All three major US stock indexes closed lower: the Dow Jones Industrial Average fell 0.51% to 48,461.93 points, the S&P 500 fell 0.35% to 6,905.74 points, and the Nasdaq Composite fell 0.5% to 23,474.35 points. Goldman Sachs and American Express fell by more than 1%, leading the Dow Jones decline. Profit-taking put pressure on AI-related stocks, with the Wind US Tech Giants Index falling 0.6%, Tesla down over 3%, and Nvidia down over 1%. Most Chinese concept stocks declined, with Dingdong Maicai falling over 7% and Silvercorp Metals & Mining down nearly 7%. European stock indices closed mixed: the German DAX rose 0.05% to 24351.12 points, the French CAC40 rose 0.1% to 8112.02 points, and the UK FTSE 100 fell 0.04% to 9866.53 points. A weaker pound and the Bank of England maintaining a high interest rate of 3.75% weighed on the UK stock market, while a recovery in the Eurozone services PMI supported the German and French stock markets.Ukrainian President Zelensky: The meeting with US President Trump was productive.Faraday Future plans to change its name to Faraday Future Artificial Intelligence Electric Vehicle Company, and will hold a special meeting on February 13th next year.

On the back of broad-based USD strength, USD/CAD approaches the mid-1.3700s, approaching a two-week high

Alina Haynes

Nov 03, 2022 18:04

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On Thursday, the USD/CAD pair recovers from an early decline to the 1.3680 zone and enters positive territory for the sixth consecutive trading day. During the beginning of the European session, spot prices achieve a one-and-a-half-week high towards the middle of the 1,3700s and appear poised to extend the recent rally from levels below 1,3500.

 

The underlying bullish sentiment surrounding the US dollar, bolstered by the Federal Reserve's more hawkish stance, appears to be a key factor sustaining the USD/CAD exchange rate. For the fourth consecutive time, the US central bank increased interest rates by 75 basis points to combat persistently rising inflation. In addition, Jerome Powell, the chairman of the Federal Reserve, dashed expectations for a dovish reversal by suggesting that interest rates would need to rise more than anticipated.

 

A further increase in US Treasury bond yields increases the prospect of further Fed policy tightening and continues to act as a tailwind for the currency. In addition, a lessening of risk sentiment provides additional support for the safe-haven dollar. A modest decrease in crude oil prices from their three-week high is anticipated to weaken the Canadian dollar, which is related to commodities prices. This, in turn, increases the chance of a further USD/CAD rise in the near future.

 

Even from a technical standpoint, the overnight spike following the FOMC meeting has pushed spot prices over the barrier zone of 1.3670-1.3685. A subsequent strength and acceptance over the 1.3700 level reinforces the bullish bias and favors bullish traders, indicating that the path of least resistance for the USD/CAD pair is to the upside. In conjunction with US bond yields, the US ISM Services PMI will propel the US usd and add momentum to the primary currency.