The strong USD weighs on commodity prices

Tuesday, March 31, 2015

Precious metal prices remained in negative territory with gold falling towards $1180/ounce and silver retreating towards $16.50. Base metal prices have been under pressure this morning as the strong USD currently weighs heavily on market sentiment limiting any upside potential. Crude oil prices continue their downside momentum. WTI front month futures retreated sharply towards $47 per barrel in early trade this morning, while Brent futures slid lower to retest $55 per barrel.  

USD index rallies above 98.0

DXY Curncy (DOLLAR INDEX SPOT)   2015-03-31 08-52-26 

Asian equity markets were mixed overnight. The Nikkei index reversed yesterday’s strong gains and retreated sharply over 200 points (-1.05%) towards 19,200. However, the Hang Seng index extended gains and continued its strong upside momentum above 24,900 after gaining over 0.25%.

In the UK, GfK consumer confidence rose to 4 in March from 1 in February, beating analysts’ expectations of 2. Market participants will be keeping an eye on the release of key UK GDP data, which could provide momentum to the pound. The London equity benchmark index edged higher this morning and gained over 0.25%, trading above 6,900.

German retail sales fell by 0.5% in February against a rise of 2.9% in January. Spain’s retail sales rallied 8% in February and the country’s industrial production increased strongly by 5.0% during the same period. European equity markets opened higher this morning while the DAX index held flat at 12080 in early trade. The euro remained under pressure after retreating towards 1.0750 against the US dollar.

XAU- Gold Spot

XAU Curncy (Gold Spot   $_Oz )  D 2015-03-31 08-53-26

LME Copper 3M 

LMCADS03 Comdty (LME COPPER    3 2015-03-31 08-54-08

Events for today: 

0001

UK

Mar

GfK Consumer Confidence

0930

UK

Q4

GDP

1000

EZ

Feb

Unemployment Rate

1445

US

Mar

Chicago PMI

1500

US

Mar

Consumer Confidence

All times UK Local Time

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