Connect with us

Economics

Copper price prediction after bouncing back above a critical level

Copper price is back above the critical level of $4.50 per pound after plunging below it earlier in the week. As at 10:20 a.m UTC, the COMEX futures were at $4.53; up by 1.82%. The red metal has been on a rebound for two sessions after dropping to $4.38..

Published

on

Copper price is back above the critical level of $4.50 per pound after plunging below it earlier in the week. As at 10:20 a.m UTC, the COMEX futures were at $4.53; up by 1.82%. The red metal has been on a rebound for two sessions after dropping to $4.38.

Underlying drivers

Even with the heightened volatility that has defined the market in the recent past, it has remained above the support zone at $4.25 for about five weeks. As more countries focus on implementing their decarbonization policies, heightened demand will likely boost the metal above the aforementioned level.  In fact, Goldman Sachs is of the opinion that copper will be one of the key beneficiaries of the predicted commodities super cycle expected to last for about 10 years.

Even with the current bullish outlook, the value of the US dollar and slowed growth of the Chinese industrial economy will likely be its key headwinds.

A few days ago, Luo Junjie – the spokesperson of China’s Ministry of Industry and Information Technology – indicated that the country’s industrial economy has continued to experience downward pressure from low consumer demand and slow trade  growth. Besides, it is yet to fully recover from the global pandemic. This is despite the Middle Kingdom recording a GDP growth of 4% in Q4’21 on a year-over-year basis.

Copper price will also be reacting to the US dollar. Similar to other commodities, it tends to have an inverse correlation with the greenback. After momentarily dropping below the support zone at $96.00 earlier on Wednesday, the dollar index has bounced back to the current $96.11. Investors are now keen on the Fed interest rate decision later in the day.

Copper price prediction

Copper price is trading above the 25 and 50-day exponential moving averages as seen on a four-hour chart. Based on the technical indicators, it will likely record further gains in the ensuing sessions. At its current level, it has invalidated the bearish outlook substantiated by the double top pattern whose formation began earlier in the month.  The pattern is usually a bearish signal.

In the near term, I expect copper price to pull back to 4.49. It may drop further to 4.46 before bouncing back. On the flip side, further rallying will give the bulls an opportunity to retest the month’s high at 4.60.

copper price
copper price

La notizia Copper price prediction after bouncing back above a critical level era stato segnalata su Invezz.

Read More

Continue Reading

Economics

Monitoring Investment Regime Trends With ETF Pairs

Markets move in waves and it’s valuable to keep an eye on the big-picture ebbs and flows for context with portfolio rebalancing, adjusting risk exposure…

Published

on

Markets move in waves and it’s valuable to keep an eye on the big-picture ebbs and flows for context with portfolio rebalancing, adjusting risk exposure and much more. There are several ways to track these broad moves. One of the more useful methodologies is watching the ratio of prices for a given investment theme.

Using various pairs of ETFs is a useful approach and on that basis this column marks the start of an ongoing periodic review of what I’m calling investment regime trends. There’s a long list of worthy ETF pairs to monitor, but as a start let’s limit the view to five in this debut. In future columns I’ll expand the vista, highlighting trends that are timely for one reason or another.

Portfolio Strategy
Here’s one way to quantify what might be called a measure of risk-on/risk-off at a high level for portfolio strategy via a pair of asset allocation ETFs. One is an aggressive portfolio mix (AOA), the other a conservatively run allocation (AOK). For this ratio, a rising trend implies a productive regime for risk-on strategies. By that measure, the strong rebound off the pandemic low has stalled in recent months and this trend appears to be at risk of rolling over and reversing.

US Stocks-US Bonds
Next up is the US stocks (SPY)/bonds (BND) regime. Here, too, the trend has stalled recently, although it hasn’t rolled over yet, largely because the loss for bonds has been greater than stocks in recent history, although this is starting to change. As a result, this indicator appears set for a downside reversal after an extended bull run.

Inflation/Reflation
The recent surge in inflation remains on the short list of risk factors that are driving market behavior this year and the price ratio for an inflation-indexed Treasuries ETF (TIP) and a nominal Treasuries ETF (IEF) suggests the inflation/reflation momentum remains strongly bullish.

US Treasuries
Tracking the risk-on/risk-off trend for US Treasuries via a set of medium-term (IEF) and short-term (SHY) ETFs reminds that staying defensive in this corner still looks timely.

US Cyclical Equities
Staying defensive also has merit by favoring shares of consumer staples (XLP) over so-called discretionary names (XLY).


How is recession risk evolving? Monitor the outlook with a subscription to:
The US Business Cycle Risk Report


Read More

Continue Reading

Economics

NRx Pharmaceuticals Leaders to Present at the H.C. Wainwright & Co. Global Investment Conference

NRx Pharmaceuticals Leaders to Present at the H.C. Wainwright & Co. Global Investment Conference
PR Newswire
RADNOR, Pa., May 19, 2022

Company to Present Corporate Update During Investor Webcast, May 24, 2022, at 7:00am ET
RADNOR, Pa., May 19, …

Published

on

NRx Pharmaceuticals Leaders to Present at the H.C. Wainwright & Co. Global Investment Conference

PR Newswire

Company to Present Corporate Update During Investor Webcast, May 24, 2022, at 7:00am ET

RADNOR, Pa., May 19, 2022 /PRNewswire/ -- NRx Pharmaceuticals, Inc. (Nasdaq: NRXP), a clinical-stage biopharmaceutical company, today announced its interim Chief Executive Officer, Robert Besthof, and other executive leaders will be presenting a virtual update to the company's business via webcast at the H.C. Wainwright & Co. Global Investment Conference.

Webcast Presentation Details: 

Event:  H.C. Wainwright Global Investment Conference (Hybrid Conference)
Date: Tuesday, May 24, 2022
Time: 7:00 a.m. Eastern Time
Link to register for the NRx Pharmaceuticals' Presentation: CLICK HERE

(A replay will be available on the NRx Pharmaceuticals website for thirty (30) days following the presentation at www.nrxpharma.com).

About NRx Pharmaceuticals

NRx Pharmaceuticals, Inc. (Nasdaq: NRXP) ("NRx Pharmaceuticals" or the "Company") draws upon decades of collective, scientific, and drug-development experience to bring improved health to patients. The U.S. Food and Drug Administration ("FDA") has granted Breakthrough Therapy designation, a Special Protocol Agreement, and a Biomarker Letter of Support for NRX-101, an investigational medicine for the treatment of severe bipolar depression in patients with acute suicidal ideation and behavior after initial stabilization with ketamine or other effective therapy. In addition, ZYESAMI® (aviptadil), for patients with COVID-19, has been granted Fast Track designation by the FDA and is in a Phase III trial for Critical COVID-19 patients which is sponsored and managed by the U.S. National Institutes of Health.

NRx Pharmaceuticals is led by executives who have held senior leadership roles at Lilly, Pfizer, and Novartis as well as major investment banking institutions.

Cautionary Note Regarding Forward-Looking Statements

This announcement of NRx Pharmaceuticals, Inc. includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995, which may include, but are not limited to, statements regarding our financial outlook, product development, business prospects, and market and industry trends and conditions, as well as the Company's strategies, plans, objectives, and goals. These forward-looking statements are based on current beliefs, expectations, estimates, forecasts, and projections of, as well as assumptions made by, and information currently available to, the Company's management.  

The Company assumes no obligation to revise any forward-looking statement, whether as a result of new information, future events or otherwise.  Accordingly, you should not place reliance on any forward-looking statement, and all forward-looking statements are herein qualified by reference to the cautionary statements set forth above.

CORPORATE CONTACT
Molly Cogan
Sr. Director, Global Communications 
mcogan@nrxpharma.com

INVESTOR RELATIONS
Tim McCarthy
Investor Relations
tim@lifesciadvisors.com

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/nrx-pharmaceuticals-leaders-to-present-at-the-hc-wainwright--co-global-investment-conference-301550902.html

SOURCE NRx Pharmaceuticals, Inc.

Read More

Continue Reading

Economics

JPY forecast amid the Bank of Japan keeping the monetary policy easy

The rapid depreciation of the Japanese yen (JPY) in the last couple of years led to one of the most impressive moves seen in the FX market in recent history….

Published

on

The rapid depreciation of the Japanese yen (JPY) in the last couple of years led to one of the most impressive moves seen in the FX market in recent history. The yen simply melted, losing value against all its peers – not only against the US dollar.
Speaking of the US dollar, the yen dropped to over 131 recently before gaining some ground in the last few days. How will the yen perform for the rest of the year, and is the Bank of Japan right in keeping the monetary policy easy?

Bank of Japan still sees inflation as transitory

The main reason for the JPY’s move lower is the Bank of Japan’s policy. The central bank sees inflation as transitory, and, for this reason, it keeps the monetary policy easy.

It keeps buying government bonds, despite PPI or Producers Price Index (i.e., inflation on the producers’ side) rising at a four-decade high.

But so did the Fed, before dropping the transitory word when talking about inflation. If the PPI transfers to consumers, as it should, then the Bank of Japan would have to reverse its policy.

Truth be said, inflation in Japan is below 2% for decades, hurting the Bank of Japan’s credibility. It might have dramatic implications on the FX dashboard if it rises considerably above the target.

Only that the FX market is a leading one. Traders speculate and position themselves well before a central bank acts.

So did we see the lowest point in the JPY or not?

AUD/JPY daily chart points to a possible reversal

All JPY pairs’ charts look more or less like the AUD/JPY daily chart below. It shows that following the COVID-19 pandemic dip in 2020, the market rallied relentlessly.

But the recent breakout in 2022 following the Bank of Japan’s yield curve control comments is only the last leg of an otherwise super long trend. In other words, the yen was sold well ahead of the Bank of Japan’s comments. It followed the US stock market higher.

Now that the US stock market is coming down (i.e., Nasdaq 100 dropped -28% YTD), the JPY pairs may follow. The AUD/JPY chart above shows a possible head and shoulders pattern at the top which might just signal the top of a bigger head and shoulders pattern.

In other words, should the recent highs hold, a move back to 80 should not be discounted, especially if the US stock markets keep falling.

The post JPY forecast amid the Bank of Japan keeping the monetary policy easy appeared first on Invezz.

Read More

Continue Reading

Trending