With the macro again weaker there was some possibility that the market may look to explore outside of this weeks narrow trading band, however despite a dip to 19.65 during the opening exchanges the market held to consolidate the same band once again. This provided a platform to resume the familiar pattern of trading and bring some day trader/ago buying back into play with prices pushed up into positive ground by late morning and then onto 20.00 by early afternoon. This coincided with the start of the US morning where despite being well poised to mount a move through towards the market highs the May’23 contract once more suffered from a lack of buying interest leading the situation to falter with a slide back into the range. March’23 was remaining steady through this period with the day seeing March/May’23 highs at 1.73 points, though here too some selling crept in during the afternoon to send the differential back down through the 1.60’s. With a 3-day weekend to follow there was reducing market interest through the later part of the session which left May’23 to edge along to the centre of the range, finally settling at 19.80 to bring the curtain down on a quiet week. With COT data not set to begin filtering out until this time next week, and then being drip fed on a delayed scale there may be continued calm trading when we resume on Tuesday and through the March’23 expiry unless fresh news arrives.
Early trading took place either side of unchanged as the ongoing range persisted, and though prices dropped away a little as the morning wore on there was no sign of any significant selling to inflict real damage to the picture. Prices were pulled back into positive ground ahead of the Americas day with some light spec buying returning to try and improve the technical picture, taking May’23 back to the low $570’s before stalling as some scale selling started to be encountered. On continuing modest volumes, the afternoon became one of broad consolidation as the flat price continued in the low $570’s with intermittent efforts to take the price further north falling flat. Highs were recorded at $572.30 prior to some end of week position squaring which sent the price quickly back down through the range to $568.00, leaving prices little changed on the day as we moved into the final hour. A quiet close saw May’23 settling at $568.00, am appropriately quiet conclusion to the week. Monday sees a slightly shortened session due to the US holiday with our market closing at 5pm UK, whether the lack of No.11 influence will allow a break from recent parameters remains to be seen.
