Marc Chandler, Managing Partner at Bannockburn Global ForEx and Editor of Marc To Market, joins us to recap the economic data from a very volatile week of trading, and we also look ahead to more macroeconomic data on tap for the weeks to come. We also dive into the corrective moves down recently in the commodity sector and some of the news that could be fueling this downward pricing pressure.
We start off looking at the strong jobs number, paired with stronger interest rates and a stronger dollar to assess the reaction in the general markets. We also look at how this data may shape Fed policy. We also review some of the recent central bank meetings, where the European Central Bank, Denmark, and the Bank of Canada all cut rates in response to stickier inflation. Marc shares how despite all of this he doesn’t believe the Fed will be following suit anytime soon, and is penciling in 1 US rate cut in the latter part of this year.
The discussion further delves into the implications for currency movements, commodity trends, and the bond market, addressing the interconnectedness and potential volatility driven by these diverse factors. Marc notes the importance of news from China as it relates to less buying of gold and how their large solar farm may have affected other solar companies in the West and their ability to compete and thus hitting the silver pricing. He also noted that larger inventory builds of copper at the ports may have contributed to copper’s sell off. With regards to the bump in natural gas prices, he feels this tied into Norway’s terminals having unscheduled shut downs. In general, Marc points out that the stronger dollar was pressuring most commodities this week.
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