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Commodities surge on supply crunch

“If you really look closely, most overnight successes took a long time.” – Steve Jobs

 

HEADLINES

 

  • Russian rouble tanks as bids evaporate in offshore trade
  • Dollar loses steam, euro steadies as oil backs off in volatile day
  • Oil prices hit 14-year highs on Russia oil ban talks, Iran deal delay
  • Palladium catches a breath after record rally on Ukraine crisis
  • Oil, wheat, nickel storm higher on fears of supply chaos
  • Wall St tumbles on inflation jitters as oil prices surge
  • European shares skid to near 1-year low on Russia oil ban prospects
  • Brent Oil: Break above $147.50 record high to open up the $200 level – Credit Suisse
  • AUDUSD Near Term: Downside favored

 

FOREX

 

Russian rouble tanks as bids evaporate in offshore trade

 

Russia's rouble lost over a fifth of its value in thin trading on Monday to a fresh record low, with local markets closed for trading until at least Wednesday.

The rouble has lost nearly 50% of its value against the greenback since the start of the year, with losses sharply accelerating since Russia invaded Ukraine on Feb. 24, a move that sparked sweeping sanctions from various governments across the world.

 

Dollar loses steam, euro steadies as oil backs off in volatile day

 

The U.S. dollar reversed almost all of its earlier gains while the euro found itself on a steadier footing on Monday as oil prices retreated from highs reached as the United States and Europe considered banning Russian crude.

 

COMMODITIES

 

Oil prices hit 14-year highs on Russia oil ban talks, Iran deal delay

Oil prices jumped on Monday to their highest levels since 2008 as the United States and European allies considered banning Russian oil imports while it looked less likely that Iranian crude would return swiftly to global markets.

During the session, both benchmarks hit the highest since July 2008 with Brent hitting $139.13 a barrel and WTI $130.50.

 

Palladium catches a breath after record rally on Ukraine crisis

 

Palladium eased off a record high on Monday after Russian and Ukrainian officials held the third round of ceasefire talks, prompting some investors to lock in profits from a blistering rally, while gold held firm on strong safe-haven demand. Prices have fallen more than $400 since scaling an all-time of $3,440.76 around 0836 GMT.

 

Oil, wheat, nickel storm higher on fears of supply chaos

 

Commodity prices went on the rampage on Monday as industrial buyers and traders scrambled to source raw materials hit by supply disruptions caused by Russia's invasion of Ukraine.

Nickel rocketed 76%, palladium reached a record level and gold broke through $2,000 an ounce on safe-haven appeal, while oil and wheat jumped to 14-year highs.

 

STOCKS

 

Wall St tumbles on inflation jitters as oil prices surge

 

Megacap growth names and financial stocks dragged Wall Street's main indexes more than 1% lower on Monday, as the prospect of a ban on oil imports from Russia sent crude prices soaring and fueled concerns about spiraling inflation.

 

European shares skid to near 1-year low on Russia oil ban prospects

 

European stocks ended off session lows on Monday, helped by a 4.3% rally in energy stocks as oil prices rose above $130 a barrel, but inflation fears amid the Russia-Ukraine conflict saw German and Italian shares confirm a bear market.

 

ANALYSIS

 

Brent Oil: Break above $147.50 record high to open up the $200 level – Credit Suisse

 

“Although a sharp intraday setback has been seen, we need to see a close below the lower end of the price gap from this morning at $118.05 to suggest we may have seen an exhaustion peak.”

“Above $147.50/$150 and we see resistance next at $158.17 and then the $164/170 zone. Beyond here and we see little in the way until $200.”

 

CHART

 

AUDUSD Near Term: Downside favored

 

Technical View: Short position below 0.739. Target 0.728. Conversely, break above 0.739, to open 0.742.

Comments: The pair breaks below support.

 

Source: Trading Central
 

 

CALENDAR

 

*Times in GMT

 

 

Source: FX Street Economic Calendar

 

SOURCES

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/brent-oil-break-above-14750-record-high-to-open-up-the-200-level-credit-suisse-202203071524
https://www.reuters.com/markets/europe/palladium-scales-record-high-gold-hits-2000-russia-ukraine-war-2022-03-07/
https://www.reuters.com/markets/europe/commodities-gold-above-2000-safe-haven-appeal-nickel-up-over-20-2022-03-07/
https://www.reuters.com/business/inflation-worries-slam-futures-oil-breaches-130-2022-03-07/
https://www.reuters.com/world/europe/european-shares-hit-1-year-low-prospect-russia-oil-ban-2022-03-07/
https://www.reuters.com/markets/europe/russian-rouble-drops-fresh-record-low-thin-offshore-trade-2022-03-07/
https://www.reuters.com/business/euro-slides-war-ukraine-stokes-inflationary-shock-2022-03-07/