Plummeting car sales bearish for XPDUSD
Palladium is used in catalytic converters with platinum and rhodium to reduce pollutant output of exhausts. The majority of palladium production – more than 80 percent of the world’s production, is used in the catalytic converters. Sales of new passenger cars have plummeted all over the world after the coronavirus outbreak. In the UK sales slumped 97 percent in April, according to the Society of Motor Manufacturers and Traders. Declines in Italy and Spain were similar, while in France the decline was an 89 percent. Since the outbreak began in March, retailers have sold nearly 800,000 vehicles fewer in US than initially forecast, according to J.D. Power. And sales were down about 40 percent just last week. There have been reports Hertz, Avis and Enterprise have canceled all orders of GM vehicles for May, June and into July. Moody’s Investors Service in recent weeks downgraded Ford’s credit rating and said was considering a similar action for GM. The ratings agency predicted “severe disruption” in demand for new vehicles. Lower demand for catalytic converters is bearish for XPDUSD.
Summary of technical analysis
|Buy stop||Below 1760.90|
|Stop loss||Above 2057.75|
Market Analysis provided by IFCMarkets
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