Close: London Session | Forex, Metals, Oil, Agriculture February 10, 2021



Money supply | Lex Greensill rose from working on his family s melon and sugar cane farm in Australia to roaming the skies in a private jet. Over two decades ago Jay got his start at the Kansas City Board of Trade in the Wheat Futures pit.


FOREX: The dollar wallowed near two-week lows as demand for safer assets ebbed, while Sweden’s crown hit its highest levels in a month against the euro. Broad-based US dollar weakness amid record rallies in the US stock indices also adds to the strength in the bright metal. In the realm of investment megatrends, an accelerating drive to renewable and sustainable energy and a long-forecast but slow decline in dollar hegemony are among the biggest. The dollar enjoyed a short reprieve over the last decade or so, but central bank and government reaction worldwide to the Covid-19 crisis was the final straw.
While the political world is focused on the trial in the Senate, markets are not culpable for forgetting about critical US stimulus and selling the dollar. The US Senate kicked off ex-president Donald Trump’s trial for inciting an insurrection on Tuesday and the shift allowed the dollar to take a breather alongside falling yields. The company cited exchange gains due to the strengthening of the Mexican peso against the U.S. dollar and the euro.
Investors may respond to such a reminder by selling bonds in expectations of higher debt issuance, boosting the dollar. US equities extending their run of record gains, while the US Dollar is on the backfoot. The dollar was little changed, while gold prices climbed.


Gold prices for the latest contract on MCX are trading flat at Rs 47,932 per 10 grams. Image Source: Unsplash Gold prices could likely benefit if the Treasury yields resume the recent declines amid uncertainty over the strength of the US economic recovery. less Gold (GLD) markets initially rallied during the trading session on Tuesday to reach towards the $1850 level. In his writing and research, Sumner specializes in monetary policy, the role of the international gold market in the Great Depression, and the history of macroeconomic thought.
S&P 500 futures pointed to a small gain at the open, the 10-year Treasury yield was at 1.16%, oil rose and gold was higher. Now, with a risk-on environment — rising stock market, for instance — less-committed gold bulls are gradually exiting. less Gold is looking to continue further down although we could say that the pattern has been completed. It’s why gold, silver, and pretty much all commodities have started to run higher.
To be sure, this is a perception that’s gaining ground.Weak physical demand is another negative factor for gold. Gold is firm within yesterday’s range, meeting resistance near $1850.


Oil prices have rebounded from the lows touched in 2020 as Saudi Arabia pledged additional oil output cuts, prompting U.S. energy firms to increase drilling activity. Oil’s supply and demand dynamic is likely the single most important driver for oil prices. However, on the other side, while demand fell off a cliff, major oil producers kept pumping, essentially overflowing the market with oil. BEFORE THE BELL Futures for Canada’s main stock index rose as oil prices extended its rally supported by producer supply cuts and hopes of a demand recovery.
Consumption of fuel, a proxy for oil demand, fell to 18.01 million tonnes in January, which was 3.2% below last month, and 3.9% lower than a year earlier. Oil extended its rally supported by producer supply cuts and a recovery in demand. In March the base effects from gasoline prices will turn positive if oil prices stay at current levels. Equinor separately reported a record annual net loss of $5.5 billion for 2020, as the pandemic weighed on oil and gas prices and led to large write-downs.
Surging oil prices appeared to have priced in too much of optimism and led market participants to question the sustainability of this rally.
Moreover, oil demand is likely to rise, as the coronavirus pandemic begins to ease into the second half of this year and into 2022.

United States

Share The recent run up in GameStop and other stocks involves investors in opposing camps: traditional Wall Street firms and small investors who are bucking the system. The recent run up in GameStop and other stocks involves investors in opposing camps: traditional Wall Street firms and small investors who are bucking the system. VanEck Impeachment After the Senate voted 56-44 to proceed with the impeachment trial of former President Donald Trump, arguments in the case begin today.
less Fed speakers repeatedly promise policy tightening is a story for next year or the year after. Wall Street futures edged higher, boosted by bets of more fiscal aid, while investors looked to inflation data on the pace of an economic rebound. There is now a growing impression among market participants that the expansionary monetary policy of the US Federal Reserve may not continue for long. In my entire life, I’ve never met anyone who favored having the Fed go around and create a bunch of “unexpected 100bp monetary policy shocks”.
This massively raised investor hopes that the US economy would come roaring back this year after a 3.5-percent decline in real GDP in 2020. If you take the US stock market cap of $48.7 trillion and the estimated GDP of $21.7 trillion, we’re nearly 224% overvalued and 84% above the historical average. Foley is among Wall Street’s most prolific investors and has raised billions so far through multiple blank-check firms.


The soft inflation readings are unlikely to impact PBOC policy but underscore why fears of an imminent tightening are exaggerated.


The new deal will help the status quo of trade continue, but how important is trade between the EU and the UK? This visualization, using data from the British House of Commons’ Statistics on UK-EU Trade Briefing Paper, reveals the significance of trade between the UK and EU member states. The EU is the UK’s biggest global trading partner, representing of the country’s total trade. Meanwhile, JD Sports will open a new distribution warehouse in the EU to cope with the worse-than-expected impact of Brexit red tape and tariff costs.
To break it down further, the EU is the buyer of 42.6% of the UK’s total exports, while also being the source of 51.8% of their total imports. Here’s a breakdown of the trade balances between the UK and the individual EU member states. The EU aims to vaccinate 70% of adults through the summer – a goal that looks elusive with every day that passes and immunization figures only slowly climb. The UK’s biggest trading partners within the EU are Ireland, Germany, the Netherlands, and France.