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Posted by Tango
on January 15, 2020, 7:35 am
Both markets opened with buying which has continued to enter both markets at different intervals. RC is trading at its highs as it gains value against KC with the arb at 54.90. It settled yesterday at 57.38. KC has tried to reach the 116.00 level but has repeatedly dropped to unchanged. However, the behavior of the market for this week has been one that has fought off pressure and has shown a tendency to move higher. Support is evident in the depth of market both in March, starting at 114.00, and in the forwards. Selling is likely by funds at 8:00 but not with the ferocity of the past. We have also seen in the COT and the OI that the selling has been mostly new by other sectors together with funds. The final reason for the underlying strength is the absence of forward selling in spite of the generally weak Real.
He $Index is lower for the first time in a few days with mixed currencies. Although the Yuan is lower today other BRIC currencies are mixed with the Real lower. USDMXN is 18.771 -0.0043 (-0.0229%), USDCOP is unchanged at 3286.10 and USDBRL is 4.1484 +0.0158 (+0.38%).
Bond futures are higher and steady while equities are slightly lower. Most metals are higher together with crude. Sugar and cocoa are are around unchanged and cotton is lower by a penny.
The market is steady with obvious obstacles.