Calm start to the week in the markets

After the dynamic Thursday and Friday, the Monday session can be classified as less interesting. The US indices corrected the recent strong gains, and Europe was gaining moderately. The dollar slightly appreciated and the yields on the US debt reached higher levels. The meeting of representatives of the USA and China should be considered important events.

Biden - Xi Jinping meeting

Yesterday took place meeting of the US president and Chinese leader Xi Jinpinga. Biden said in a press conference that he "is not looking for conflict" and wants to manage the US-China rivalry responsibly. He emphasized that he believed that there had to be a new Cold War. He added that US policy on Taiwan has not changed "at all" and that the US remains committed to a peaceful resolution of tensions.

President Biden said he did not believe there was any inevitable attempt by China to invade Taiwan. The Chinese foreign ministry said in a statement that Xi had warned Biden that Taiwan is "at the core of China's core interests" and "the first red line that must not be crossed in China-US relations." Biden also added that both leaders discussed the war in Ukraine and reaffirmed their shared belief that the threat or use of nuclear weapons is completely unacceptable.

Slower pace of increases

Financial markets also received a comment from the dovish wing of the Fed, Laela Brainard. The vice chairwoman of the Federal Reserve mentioned that it would soon be appropriate to the central bank moved to a slower rate of rate hikes. Monetary policy is lagging behind and it takes some time for the cumulative tightening to affect the economy, she added.

Despite the positive tone of the meeting between Biden and XI and dovish comments from Brainard, the US indices were glowing red and thus the recent dynamic gains were corrected. Dow Jones lost 0,6 percent, the SP500 fell 0,9 percent. and Nasdaq decreased by 1,1 percent. The dollar appreciated slightly. The EUR / USD pair dropped below 1,03 for a moment, but today in the morning the quotation again shows a level above 1,0330. Everything indicates that the movement to the north will continue and Monday's low volatility is only a stop before another upward impulse.

The weakening of the zloty

After a good appreciation period, the zloty weakened. Course USD / PLN is back above 4,56 and is currently below 4,55. The EUR / PLN rate soared and yesterday afternoon it was at 4,7150. We are currently lower at 4,7030.

It remains at high levels all the time gold and you have to pay around 1771 USD for an ounce. The closest technical resistance appears to be the $ 1800 round ceiling. An interesting pattern of "inverted head and shoulders" was shaped on the silver chart. The potential range indicates possible increases to around $ 25.

Source: Łukasz Zembik, OANDA TMS Brokers