- Wall Street does not operate on Monday: US holiday
- DXY hit a decade high before pulling back slightly.
- Metals continue to recover and oil advances.
Equity markets are mostly in the red, given the continuing energy crisis in Europe, new sanctions in China and the economic outlook. The dollar reached new cycle highs, while metals advanced modestly.
European markets in red
The quarantines in China added to the economic context in Europe, weigh on the markets on Monday. In London the FTSE 100 falls 0.65%, in Paris the CAC 40 falls 1.90% and in Frankfurt the DAX yields 2.70%. With very low volume, Wall Street futures are mixed: the S&P falls 0.01% and the Dow Jones rises 0.13%.
Following Friday’s US jobs report, the dollar kicked off Monday to new highs in years against the euro and pound before paring losses. USD/JPY remains above 140.00.
Volume in the markets could continue to be limited US holiday product (Labor Day). The Treasury bond market will be closed. In Europe, yields are rising.
The energy crisis in Europe continues to be at the center of the scene, with fears for supply in the winter. Russia stopped gas shipments to Europe and warned that they will not return until the “West” lifts sanctions against Moscow.
The euro it is among the worst performing coins on Monday. EUR/USD hit lows since 2002 below 0.9900, while EUR/GBP pulls back modestly. On Thursday the decision of the European Central Bank (ECB) will be known.
The pound for a week it has been one of the weakest, also affected by high energy prices, a bad economic outlook and also political issues. Today the new leader of the Conservative Party and future prime minister will be known. Liz Truss is the one who is estimated to succeed Boris Johnson.
Its oil prices they are rising on Monday, after managing to hold onto recent lows. The barrel of WTI is trading up more than 2% and is above $89.00, at the highest since Thursday. The Organization of Petroleum Exporting Countries and allies (OPEC+) is expected to cut production levels by 100,000 barrels per day.
The metals they are going up on a limited basis. Both gold and silver are close to Friday’s highs but unable to break them around $1715 and $18.20 respectively.
The cryptocurrencies do not show significant changes. Bitcoin is trading below but close to $20,000, while Ethereum is down 0.25% to settle at $1,567.
Technical levels
Source: Fx Street
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