Close: London Session | Forex, Metals, Oil, Agriculture January 18, 2021

Over two decades ago Jay got his start at the Kansas City Board of Trade in the Wheat Futures pit.

Smaller declines were seen in the euro (-1.18%), the Australian dollar (-0.83%), the Swiss franc (-0.68%) and the Canadian dollar (-0.40%). The biggest drop against the US dollar was shown by the New Zealand dollar (-1.48%). If we look at the dollar index, it is still at levels close to its critical level of support, although in recent days it seems to have relaxed volatility. A strong euro (which mostly results from lower US dollar) and inflationary pressures should be regarded as transitionary by the ECB, therefore not resulting in further policy action.
The euro was mostly flat against the dollar, with 1 euro buying $1.21. Despite last week’s performance, where the dollar continued to recover ground against the EUR, the general sentiment continues to be weak towards the main currencies. Doubts surrounding US stimulus plans alongside rising demand for safety may be contributing to the Dollar’s strength. Phillip Futures analysts noted that the impact of the U.S. dollar and Treasury yields on gold prices would only be short-term.
The rising US Dollar and uncertainties surrounding US President-elect Biden’s 1.9 trillion stimulus plan appear to be the primary weighing factors. After long days in which the dollar moved to the tune of Treasury yields, it began responding to concerns about the impact of the current slowdown.

Source: Bloomberg, DailyFX Last week, the world’s largest gold ETF – SPDR Gold Trust (GLD) – saw its shares outstanding decease by 1.4 million as redemptions outpaced subscriptions. In the previous session, gold prices had declined Rs 500 per 10 grams while silver had slumped Rs 1,700 per kg. The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions. On MCX, gold futures fell 0.1% to over one month low of Rs 48,636 per 10 grams, extending their decline to the third day.
It stabilized the demand for gold since it is often used as a hedge against currency debasement and inflation, which are the likely result of a large fiscal stimulus. Gold prices are trading up 0.4% at Rs 48,880 per 10 grams. Gold prices are trading up by 0.1% at Rs 48,768 per 10 grams. Axi’s chief global market strategist Stephen Innes agreed that the gold market remains relatively supported.
Gold prices in India extended their recent slide today when they slipped amid weak global cues. Also, market speculators lowered their bullish stance in COMEX gold contracts for the week that ended on January 12.

After all, the demand for crude oil is a bit suspect at this point in time and we had seen such a rise from the lows. Prices had been buoyed by the start of COVID-19 vaccine rollouts and a surprise cut of crude output by the world’s biggest oil exporter, Saudi Arabia. However, the recent rise of commodities prices, including oil and gasoline, have energy companies turning the corner. However, with crude oil back over $50 and gasoline over $1.50, energy is back in favor with investors.
is an energy midstream company that provides natural gas and natural gas liquids (NGLs) gathering, processing, and transport services. Its refineries processed an average of 14.2 mln barrels of oil a day. Oil prices fell on demand worries. Front month March WTI futures were down $1.12 at $51.99/bbl, with the other 49-month forward contracts traded between -$1.33 and -$0.34. The February 92 RON Gasoline contracts declined $0.85 at $58.53/bbl; 2Q ’21 was down $0.82 at $58.88/bbl and the 2H Cal ’21 contract declined $0.84 at $57.46/bbl.
April ICE Brent futures were $1.13 lower at $54.6/bbl, while the rest of the 48-month forward contracts traded between -$1.29 and -$0.47.

Fed Chair Jerome Powell, laid his foot down last week by ending talk of an early tapering of bond buys, which had boosted the greenback beforehand. Fed Vice Chairman Richard Clarida reiterated last week in a Hoover Institution webcast that the FOMC would not raise rates until it saw inflation at 2%. It’s a US holiday today so we may see lower volumes but we have a busy week ahead regarding data and earnings season in the US. Last week, FED chairman Powell rejected the idea of ​​reducing the bond-buying program and carrying out a rate hike in the short term.
Chair Jerome Powell put an end to speculation about an early tapering of bond buys – and the Fed may even go further with expanding its program. Kansas City Fed chief Esther George said inflation has been weighed down by those sectors, and it may come roaring back. Nasdaq Futures are trading down by 20 points (down 0.2%) while Dow Futures are trading down by 31 points (down 0.1%). Nasdaq Futures are trading down by 16 points (down 0.1%), while Dow Futures are trading down by 65 points (down 0.2%).
In other words, Wall Street is protected and therefore they have been taught over the last several years that losses are going to be protected. “Be careful not to exit too early,” Fed Chairman Jerome Powell said at a virtual event for Princeton University, as he pledged to maintain asset purchases.

The U.S. Chamber of Commerce wants to see the tariff dispute with Beijing resolved.

In Britain’s case, uncertainty over the outcome of the country’s complicated divorce from the European Union extended that weakness into early fall. The Brexit vote led to stock market crashes around the world. That followed two quarters during the height of the pandemic and Brexit uncertainty when there were no such standoffs. German Foreign Minister Heiko Maas is visiting Turkey today, as the EU and Ankara work to defuse tensions. The deal was wound up rapidly after receiving antitrust clearance from the European Union before Christmas.
On the other hand, , a moderate, has been elected leader of Chancellor Angela Merkel’s CDU Party. 2016: Brexit was on the rise, and stocks took a hit.