Close: London Session | Forex, Metals, Oil, Agriculture July 15, 2021

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Currencies

He is also Chairman of SchiffGold, his precious metals dealer, Euro Pacific Asset Management, and Euro Pacific Bank, his brokerage firm for international clients. The reason for this could be the weakening of market sentiment and the recovery of the US Dollar. That is when taper talk fears, spurred by rising prices, pushed the US Dollar and Treasury yields higher. Photo by Colin Watts on Unsplash This hawkish turn by Saunders has seen Sterling turn sharply higher, pressing back against 1.3900 against the US dollar.
The only thing that will lead to an increase in the price of gold is a further prolonged decline in the actual purchasing power of the US Dollar. The Bloomberg Dollar Spot Index erased losses and rose for the third time in four days. The speech, released on the bank’s website, sent the pound to the lone advance among Group-of-10 peers against the dollar. less The Australian Dollar (FXA) is trading near a very important resistance level.
The US dollar index is likely to fall once this sideways range ends. less The euro rallied significantly during trading session on Wednesday to recover most of the losses it incurred on Tuesday.

Metals

less Gold prices have been on the up this month as the yellow metal’s fundamental outlook improved, as markets capitulated further to a transitory view on inflation. In global markets, gold rates were flat at US$ 1,824.8 per ounce after hitting a four-month high of US$ 1,829.6 in the previous session. On MCX, gold futures were down 0.1% to Rs 48,265 per 10 grams after posting a nearly 1% gain in the previous session. Gold prices today edged lower in Indian markets after a sharp gain in the previous session.
Gold prices for the latest contract on MCX are trading up by 0.1% at Rs 48,335 per 10 grams. Gold prices are trading up by 0.4% at Rs 48,498 per 10 grams. The measure, known as the Carbon Border Adjustment Mechanism, will affect imports including steel, cement, aluminum, fertilizers and power from countries with lower environmental standards. Gold is attempting to break above the key 200-day Simple Moving Average (SMA), which would likely brighten its technical posture and pave the way for more upside.
Gold retakes 200 day moving average after Powell reiterates transitory inflation verse. Lower yields seem to be aiding gold, which is seeing follow-through buying after taking out the 200-day moving average (~$1825) yesterday.

Oil

less Oil prices initially dipped then flipped on a report that the UAE and Saudi Arabia had reached a compromise to raise oil production. But that is not actually a good gauge for U.S. demand, because U.S. crude oil exports hit 4 million bpd for only the 5th time ever. Share The pandemic stalled factories and shut down business around the world, causing a historic drop in oil demand just as production was reaching new highs. In other words, the deal would not have any impact on oil production until the end of this year other than the previously agreed upon OPEC-Plus increase.
Author’s Publications Follow This year, oil prices have been driven much more by demand numbers and headlines than by actual supply. This year, oil prices have been driven much more by demand numbers and headlines than by actual supply. Still, feedback from active oil traders who can read between the lines suggests there UAE would adhere to current production quotas until April next year.
Distillate inventories climbed by about 3.7 million barrels, more than expected, while crude supplies declined by 7.9 million barrels.
Oil has rallied almost 50% this year as the vaccine rollout lifts demand in major economies such as the U.S. and China, and fosters a recovery in Europe. WTI Weekly TTM United States data provides important indicators of oil demand, in part because weekly data in the U.S. is so readily available.

United States

For now, market measures of inflation expectations suggest investors are confident in the Fed, he said.“You probably don’t want to be on automatic pilot in this situation,” Bullard said. less Well…we did say the Fed Chair would be out in full force on Wednesday, doing everything in his power to talk down the on-fire inflation data. less Fed forced to admit that inflation will be higher and last longer than they predicted. less In his closely watched testimony before the House of Representatives yesterday, Fed Chairman Powell stuck to the script about where monetary policy is going.
Nasdaq Futures are trading up by 19 points (up 0.1%) while Dow Futures are trading down by 100 points (down 0.3%). less The US stock market has bad breadth as participation thins out markedly. With central banks from New Zealand to Canada and the U.K. turning hawkish, traders continue to debate how far the Fed can hold back on tapering. Australia’s jobs data were also better than expected, and the 10-year Aussie bond yield fell five basis points and is again at a discount to the US.
In a biennial statement, Fed Chairman Jerome Powell tried to convince markets that the Federal Reserve will make many announcements before adjusting the monetary policy. The Fed’s index of current factory employment registered its strongest reading since 2018, while a measure of future hiring reached a record.

Europe

Next week’s meeting suddenly has become very interesting as it should bring more clarity around how the ECB wants to implement its new strategy. Pexels Until a week ago, next week’s ECB meeting was set to be a non-event; an intermediate meeting to bridge the time until the September 9, meeting. However, with the release of the ECB’s strategy review last week, any ECB watcher hoping for early summer vacation had to change their plans. Thus, what the strategy review lacked in ambition on the inflation front, Lagarde must now push on forward guidance to build its credibility.
less Last week, the ECB unanimously approved an updated monetary policy strategy. Next week, Lagarde and her colleagues will decide if the changes to the strategy will prompt changes to the policies. If the latter is the case, the ECB’s own inflation projection of 1.4% in 2023 would forbid any tapering in the coming months. Forest wars are looming Traditionally seen as an add-on to climate plans, trees take center stage in the EU s proposal.
Finally, Lagarde is now done seeking unanimous backing, saying that she neither has the expectation nor the illusion that decisions will be unanimous. By now, I have built up excellent skills and experience in analyzing macroeconomic and political developments in Europe, the Eurozone and Germany, including ECB watching.

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