Forex & Commo Market News

REUTERS TECHNICAL ANALYSIS Q1 OUTLOOK 2017 - WANG TAO

Crude oil and grains look bullish in the first quarter while precious metals may experience short-lived bounce before resuming downtrends. Base metals have completed the bounces and are expected to reverse their gains made in the last quarter of 2016. Outlook on softs are mixed, with sugar and coffee to rise while cocoa is expected to slide more. To read the full report, click here.

Jan 20 - Oil ticked lower, falling for the first time in three sessions as prospects of rising U.S. production weighed on the market.  
- Gold prices rose to the highest in two months as investors sought safer assets amid uncertainty around the economic policies of new U.S. President Donald Trump and as the dollar declined against other major currencies.  
- London copper climbed to a six-day high, buoyed by a weaker dollar and as U.S President Donald Trump reiterated plans to spend big on infrastructure.  
- Chicago soybeans slid for a third session, with forecasts of dry weather in Argentina's flooded crop areas easing concerns over yield losses.
- The pound rose to its highest against the dollar in a month, as the greenback sold off broadly.

Jan 19 - Oil climbed for a second day underpinned by expectations of tighter supply and on reports of record Chinese demand, but prices remained under pressure from rising U.S. crude and gasoline inventories.
- Gold prices held steady and were on track for their fourth weekly gain in a row, buoyed by a weaker dollar ahead of the inauguration of U.S. President-elect Donald Trump later in the day.
- London copper futures edged higher after China's economy grew slightly faster than expected in the last quarter of 2016, but caution among investors ahead of U.S. President-elect Donald Trump's inauguration capped gains.
- Chicago soybeans slid for a second session with a strong dollar weighing on prices, although crop-damaging floods in Argentina kept a floor under the market.

Jan 18 - U.S. oil moved away from one-week lows touched the session before, with investors turning their attention to upcoming government data on U.S. inventories.  
- Gold prices were down on a strong dollar after Federal Reserve Chair Janet Yellen advocated lifting U.S. interest rates gradually.
- London copper reversed early losses to follow Shanghai futures higher as expectations of steady growth in China helped the red metal along with positive U.S. economic signals.
- Chicago soybeans eased from a six-month high with the market snapping four sessions of gains on a stronger dollar although losses were limited by concerns that floods could crimp output in Argentina, the world's third-biggest producer.

Jan 17 - Oil markets were mixed, supported by growth in U.S. crude production and Saudi Arabia saying it would strictly adhere to a commitment to cut output, but held back by scepticism in financial markets that oversupply would be curbed.
- Gold prices rose to hover near seven-week highs hit the day before, with safe-haven demand boosted ahead of a speech in which British Prime Minister Theresa May is expected to discuss plans for a "hard Brexit".
- LME copper slid for a second session, as a firmer U.S. dollar pressured the market, but expectations of strong demand in top consumer China put a floor under prices.
- Chicago soybean futures rose for a third consecutive session on Tuesday, climbing to a seven-week top as heavy rains across Argentina's central crop belt raised concerns over yield losses.
- The British pound flirted with a three-month low, hit by fears that Prime Minister Theresa May's speech later in the day is likely to set Britain on a course that would end its access to the lucrative European Union single market.

Jan 16 - Oil prices inched up, supported by a weaker dollar and expectations that OPEC and other producers will cut output as part of a deal to curb global oversupply.
- Gold rose, buoyed by safe-haven demand due to uncertainty over U.S. policy ahead of President-elect Donald Trump's inauguration and amid concerns over Britain's exit from the European Union.
- Copper prices rose, extending hefty gains from last week on the back of strong economic data from the United States and China.
- U.S. soybean futures rose on Friday on follow-through buying on the U.S. Agriculture Department's surprise cut to its domestic production estimate and ending stocks on Thursday, traders said.
- Sterling wallowed at three-month lows in Asian trade after media reports that the British government is prepared to make a "hard" exit from the European Union rekindled investors' fears about the impact of the impending move.

Jan 13 - Oil prices edged up, supported by reports on details of OPEC output cuts, although lingering doubts over producer compliance with supply reduction targets weighed on the market.  
- Gold fell after hitting a seven-week high in the previous session as the dollar edged up and a technical correction set in, but the yellow metal was still on track to end higher for a third straight week.  
- London copper edged up, putting it on track for a weekly gain of about 5 percent, its biggest weekly advance since late November after data showed China imported more copper last year and a weaker dollar boosted industrial metals.  
- Chicago soybean futures were on track for their biggest weekly gain since late November, with prices underpinned by the U.S. government reducing its estimate for yields and stockpiles.

Jan 12 - Oil prices dipped on the back of rising U.S. crude inventories and plentiful supplies, despite emerging output cuts from OPEC and other producers.

- Gold rose to a 7-week high on a weaker dollar after U.S. President-elect Donald Trump provided little clarity on future fiscal policies at a press briefing.

- Shanghai copper traded little changed in low volumes, while most other Shanghai contracts fell after U.S. President-elect Donald Trump failed to offer concrete stimulus plans.

- Chicago wheat futures slid for a third session, trading near one-week lows as the market faced pressure from forecasts of favourable weather in the U.S. Plains and the Black Sea region.