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10 Mar 2014
Flash: Caution on Chinese metals markets - RBS
FXStreet (Bali) - Greg Gibbs, FX Trading Strategist at RBS, notes that market attention towards the metals market will increase this week.
Key Quotes
"Sharp weakness in Chinese metals markets has thrown a spanner into the works of an otherwise risk positive environment. Weaker metals prices reflect concern possible fragility in the Chinese financial system. This includes the practice of using metals as collateral for loans."
"The market will turn its attention to copper and iron ore prices this week that fell sharply and suddenly on Friday. After being spun from bullish breaks in AUD higher and higher JPY crosses generally back into old ranges traders will feel unsettled."
"There are several key events this week, including more Chinese data, Australian employment report, RBNZ rate decision, BoJ policy decision, and several other rates decisions in Asia. The Ukrainian crisis also remains a contentious issue with Russia tightening its grip on Crimea. A move to the sidelines seems a good starting point this week."
Key Quotes
"Sharp weakness in Chinese metals markets has thrown a spanner into the works of an otherwise risk positive environment. Weaker metals prices reflect concern possible fragility in the Chinese financial system. This includes the practice of using metals as collateral for loans."
"The market will turn its attention to copper and iron ore prices this week that fell sharply and suddenly on Friday. After being spun from bullish breaks in AUD higher and higher JPY crosses generally back into old ranges traders will feel unsettled."
"There are several key events this week, including more Chinese data, Australian employment report, RBNZ rate decision, BoJ policy decision, and several other rates decisions in Asia. The Ukrainian crisis also remains a contentious issue with Russia tightening its grip on Crimea. A move to the sidelines seems a good starting point this week."