Close: London Session | Forex, Metals, Oil, Agriculture August 27, 2021

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Agriculture

There are already signs that their profit potential, at least across the U.S. corn belt, appears to have peaked, and things may get tougher.

Currencies

The Unemployment Claims from last week surged to 353K against the forecasted 345K, weighed on the US dollar, and limited the downward momentum in gold. Dollar General Corp: CFRA cuts rating to hold from buy, saying the company raised FY2022 sales outlook but didn t raise operating income guide, which implies weaker operating margins. Rising prices of the US dollar and firm US Treasury yields continued to press gold. Market participants have already been in a tense situation for several weeks, and FOMC representatives are adding fuel to the fire, trying to drum up demand for the dollar.
Gold prices firmed, while the dollar was slightly down. less News of the deadly strike at the Kabul airport quashed risk appetites, sending equities lower and the dollar higher. Ahead of Powell’s speech today, these statements may be regarded as verbal interventions in favor of the dollar. Image Source: Pixabay Meanwhile, a softer tone around the US Treasury bond yields kept the US dollar bulls on the defensive.
The DXY reached the 93.08 level and supported the US dollar, ultimately putting pressure on the yellow metal. The US dollar was strong on board despite poor-than-expected macroeconomic data released for the day.

Metals

Gold prices edged higher in Indian markets today despite muted global cues. Gold prices for the latest contract on MCX are trading down by 0.3% at Rs 47,077 per 10 grams. Treasury yields continued their bullish streak for a third consecutive session on Thursday and added extra weight to gold prices. Gold prices are trading up 0.6% at Rs 47,519 per 10 grams. Copper prices are higher for the fifth session in the past six. On the other hand, the uncertainty about the decision of the Federal Reserve regarding tapering economic support at the Jackson Hole symposium kept supporting gold prices.
The strike is continuing for the third week at Caserones mine, which produced about 1,27,000 tonnes of copper last year. Gold prices closed at $1795.15 after reaching a high of $1800.35 and a low of $1781.35. Apart from this, speculations that the Fed might still begin rolling back its pandemic-era stimulus later this year capped the upside for the non-yielding gold.
China’s iron ore contracts finished the week with their fifth consecutive advance.

Oil

Oil rose on supply concerns, as energy companies began shutting production in the Gulf of Mexico ahead of a possible hurricane forecast to hit on the weekend. Gulf of Mexico offshore wells account for 17% of U.S. crude oil production and 5% of dry natural gas production. The global demand for crude oil of course continues to be a fluid situation because the Delta variant is something that is starting to take a lot of headlines. For the crude oil market, there is still a significant upside risk going into winter.
Reports are stating that BP evacuated four oil production platforms and shut down U.S. Gulf of Mexico production. Crude oil made a new high for the week, with the October WTI contract reaching about $68.75 before pulling back. Oil man and the sea | Norwegian billionaire Kjell Inge Rokke s Aker and SalMar will create an offshore fish farming company to open new waters for producing salmon. Meanwhile, international oil benchmark Brent crude rose 0.94 per cent to $71.74 per barrel.
This could also cause a headwind for oil prices. Oil platforms are already shutting down.

United States

If they start to taper bond purchases, that could send interest rates higher, which does not necessarily translate to higher prices in the Nasdaq 100. It reported a net loss of CNY 1.19 billion in the second quarter, below Wall Street analysts’ expectations for a net loss of CNY 1.236 billion. Receipts he provided to The Wall Street Journal showing YouTube revenue payments confirm that he earns several million dollars a year in ad revenue alone. US stock futures are trading lower today, indicating a negative opening for Wall Street.
Investors also seemed reluctant to place any aggressive bets ahead of Fed Chair Jerome Powell’s highly-anticipated speech at the Jackson Hole Symposium. Nexters’ ordinary shares and warrants will be traded on Nasdaq under the tickers GDEV and GDEVW, respectively, the company said in a statement. Previous update: Well, the Fed speculation on monetary policy normalization has once again turned in favor of the hawks heading into Chair Jerome Powell’s Jackson Hole showdown.
Inflation fears are becoming real for the Fed and with more government spending coming, they may want to put on the brakes. The market speculations for an early move by the Fed were reinforced by St. Louis Fed President James Bullard and Dallas Fed President Robert Kaplan’s hawkish comments on Thursday. Today, Wall Street continues to use Zacks research including the Zacks Rank and Zacks Equity Research, which combines the best of quantitative and qualitative analysis.

China

This is another example that reinforces our framing of recent developments in China: Beijing is trying to discipline its own bourgeoisie, which has been fairly successful in recent years. The private sector helped power China s economic rise, but President Xi Jinping seems determined to rein in what he sees as its excesses. Another front in Beijing’s effort to rein in some of the excesses has opened. Founded in 2014, EqualOcean is headquartered in Beijing and has offices in Shanghai, Shenzhen and New York.

Europe

Nvidia is unlikely to offer concessions during this period, the sources said, which will then prompt a 90-working day full-scale EU investigation. Michel Barnier, the European Union s former Brexit negotiator, is running to be France s Republican party candidate to challenge Emmanuel Macron in the April presidential election. His feature articles have been published on: FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc.

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