Commodities outlook: oil and gold
What are the projections for the oil and gold prices? Let's discover that in the review for commodities.
CAD/JPY breaks to highest level since October 2018
Information is not investment advice
Ichimoku Kinko Hyo
GBP/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.
Fibonacci Levels
XAU/USD: Gold facing a further consolidation on 23.6% retracement area. Bears have returned recently.
US Market View
Global shares extended gains on Thursday after the Federal Reserve said it was too early to consider rolling back emergency support for the economy, and U.S. President Joe Biden proposed a $1.8 trillion stimulus package. Fed Chair Jerome Powell said on Wednesday that "it is not time yet" to begin discussing any change in policy after the U.S. central bank left interest rates and its bond-buying program unchanged, despite taking a more optimistic view of the country's economic recovery. Biden proposed the sweeping new $1.8 trillion plan in a speech to a joint session of Congress on Wednesday, pleading with Republican lawmakers to work with him on divisive issues and to meet the stiff competition posed by China. He also made an impassioned plea to raise taxes on corporations and rich Americans to help pay for what he called the "American Families Plan" in his maiden speech to Congress.
The Fed's doggedly dovish outlook and the White House's spending plans hampered the dollar, which traded just off nine-week lows. Oil prices extended gains on Thursday as bullish forecasts for a demand recovery this summer offset concerns of rising COVID-19 cases in India, Japan, and Brazil.
Apple delivered a blowout first quarter late Wednesday, sending its stock up 2.7% premarket, with sales jumping 54% fueled by 5G iPhone upgrades and the company adding that it would increase its existing share buyback program by $90 billion. Facebook also beat Wall Street expectations for both quarterly revenue and profit on Wednesday, prompting gains of over 7% premarket, helped by a surge in digital ad spending during the pandemic when consumers shopped online, along with higher ad prices.
USA Key Point
- USD/JPY contests 109.00 level again as the dollar keeps steadier on the session.
- Treasury yields move back up close to pre-FOMC highs.
- ECB's de Guindos: Inflation could be higher than 2% at the end of the year.
- USD/CAD looks poised to extend downside momentum, sellers to eye 2018 lows.
- Gold still not in a hurry to go anywhere as investor appetite remains weak.
Gerasimos Papagiannis
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Commodities outlook: oil and gold
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