Today marks the first time a rebound in WTI has not correlated with wide selloffs in Global Markets. Before today, even a slight bounce in the Energy commodity would drag Stocks and Bonds, and, more particularly, the subjects of today’s check-up, metals.
As we covered yesterday, Silver and Gold escaped some bearish technical developments as the Sunday Globex open brought heavy selling flows – sustaining their respective $80 and $5,000 thresholds. Traders will have to be more patient to spot which side the breakout will take. Don’t hesitate to check out the piece to learn more!
Tomorrow’s Fed Meeting will provide some quintessential clarity to the inflation situation:
As a quarterly meeting, the Fed will provide the Summary of Economic Projections, which projects expected activity (GDP) and inflation; two of the most heavily influenced data points by recent Middle East developments – particularly with rises in Oil, Which Are largely pricing out upcoming Rate Cuts.
We will explore potential Fed argument points throughout an afternoon US Dollar review.
As we enter the final stretch ahead of the key event, it is not surprising to see global assets losing some of their traditional correlations as Participants move to unwind positions to shed risk, particularly ahead of a highly unpredictable meeting.
What is certain is that the conflict changed the picture quite a lot; one way to prepare for the coming days is to see where Assets were trading before the War to get a better idea of what could happen if things actually improve.
Metals have had dynamics of their own, initially rallying, then selling off, just to establish confusing ranges, and only Platinum has managed to withstand the general pressure from the rise in the Petrodollar.
