Commodities Daily - March 27, 2018

Oil rally eases amid weaker dollar, recovery in global stocks and profit taking. We expect Brent to stay within the $70-71/bbl range today, supported by uncertainty over the future of the Iranian nuclear deal and the likelihood of new sanctions. Expectations of bullish US inventory data are also likely to be priced in and offer support.
Dollar retreats on risk-off trade, gold prices climb to near YTD highs. Today, however, given expectations that the dollar will remain weak and that EUR/USD will trade in a 1.2450-1.25 range, gold is likely to hold within its current $1,350-1,355/oz range.
South Korea, US set quota on steel imports; EU investigates potential impact of tariffs. The US has agreed to extend South Korea’s exemption from the newly imposed US tariffs on imports of steel and aluminum and has introduced a quota of 2.68 mtpa on Korean steel imports. Meanwhile, the EU has launched an investigation to determine whether safeguard measures should be taken to protect the market from a potential spike in imports as a result of the implementation of US Section 232 tariffs.