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Posted by Tango
on March 4, 2020, 7:13 am
The market began at the lows of the morning, 2.65c lower from sett and .90c lower than post close last. It propelled higher close to yesterday’s high of 122.45, an area visited twice yesterday and a level where strong resistance is present. For now the market is under pressure and testing the 120.00 general level once again. 8:00 will likely bring buying but will it be enough to satisfy the long sellers? Yesterday the OI continued to show liquidation on both sides as well as an explosion in implied volatility, strength in spreads, caused partially by forward selling. The front MayJul however was being hit possibly because shorts are covering and don’t need to roll. Prices have just made new lows.
The $Index is higher as the currencies with the greatest weight on it are lower. BRIC currencies are mixed with the Yuan higher. USDMXN is 19.282 -0.166 (-0.8536%), USDCOP is 3,457.00 -4.22 (-0.1219%) and USDBRL is 4.5147 +0.0003 (+0.01%).
Equities are sharply higher together with higher bond futures. Metals are slightly higher. Crude is higher while grains are mostly higher. Sugar and cocoa are lower while cotton is higher.
KC has made a new low of 118.85 and prices seem to be stabilizing for now.