Close: London Session | Forex, Metals, Oil, Agriculture July 16, 2021

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Agriculture

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

Currencies

However, on Friday, the rupee could not sustain gains due to consistent dollar buying from state-run banks, likely on behalf of importers. The US dollar basket continues to move higher within a short-term channel uptrend with the support line holding repeated tests so far. less The US Dollar is gaining ground against key FX peers Friday morning with the broader DXY Index up around 0.15% intraday at the time of writing. If bond yields and the US Dollar follow higher as a result, gold could stand to lose to wrap up the week.
Given the resumption of dollar strength against other global currencies, the closest downside target for the pair is 1.1771, which was the support level on Wednesday. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.06 per cent to 92.56. We will have to see if the amount of stimulus is depleting the value of assets valued in dollars, as the dollar declines in value.
Image Source: Unsplash Furthermore, bitcoin has been falling against the dollar every time it has tried to rally over the last couple of weeks anyway. We may be at a point where this stimulus may be jeopardizing the purchasing power of the US dollar – and every other fiat currency. The bitcoin market has been no different, especially as the US dollar has spiked again during trading on Thursday as the 10-year yields dropped below the 1.3% level.

Metals

Please see below: To explain, the gold line above tracks the London Bullion Market Association (LBMA) Gold Price, while the red line above tracks the U.S. 10-Year real yield. Even with the recent volatility in prices, gold and silver remain among the best-performing commodities this year to combat the fallout from the coronavirus pandemic. Radomski is the author of Sunshine Profits’ Gold & Silver Trading Alerts and many of company’s investment tools. In global markets, gold rates were trading higher near a one-month high after the US Fed Chief reassured that he was in no rush to tighten policy.
Gold is trimming yesterday’s gains, but barring a deeper sell-off in North America, it is set to close higher for the fourth consecutive week. Note that large stimulus measures typically tend to support gold, which is often considered a hedge against inflation and currency debasement. Gold prices are trading down by 0.2% at Rs 48,295 per 10 grams. Gold prices in India today edged lower after rising for three days in a row.
A lot of buzz has been generated around a potential worldwide silver shortage, as the U.S. Mint indicated in a recent statement. This year’s survey reveals a comprehensive view of the global silver market.

Oil

OPEC in their latest monthly report predicted that we would see global oil demand exceed 100 million barrels a day in 2022. On balance, the appearance of resilience in the most important sector of the world’s largest economy may buoy the outlook for oil demand and nudge prices higher. The peak demand crowd is probably going to be as wrong as the peak oil production people were 20 years ago. Image Source: Pixabay OPEC says that “World oil demand growth in 2021 is forecast at 6.0 mb/d, unchanged from last month’s assessment, although there have been some regional revisions.
These include improved containment of COVID-19, particularly in emerging and developing countries, which are forecast to spur oil demand to reach pre-pandemic levels in 2022. There is more evidence that the predictions of “peak oil demand” were greatly exaggerated. Total oil demand is projected to average 96.6 mb/d. Global oil benchmark Brent crude futures advanced 0.37 per cent to $73.74 per barrel.
Greenland ends all future oil exploration. The analysis bluntly said that gasoline engines could very well be a money-losing idea by 2030.

United States

Competition also is spurring dealmaking; The Wall Street Journal reported Thursday that Intel INTC -1.26% is exploring a deal to buy chip manufacturer GlobalFoundries for around $30 billion. less Semiconductor giant (INTC) is in talks to buy contract chip maker GlobalFoundries for $30 billion, The Wall Street Journal reported on Thursday, citing sources. Of the nine Wall Street analysts that rated SPWR, one rated it Buy, five rated it Hold while three rated it Sell.
Tim Arcuri of UBS says supply constraints could weigh on chip makers’ sales projections just as their earnings momentum also starts to slow. The Wall Street Journal reported late Thursday that Intel is exploring a deal to buy GlobalFoundries, a U.S.-hubbed chip manufacturer owned by the Abu Dhabi government. Nasdaq Futures are trading down by 7 points (down 0.1%) while Dow Futures are trading up by 18 points (up 0.1%). The big question is whether this inflation is going to be temporary, as the Fed suggests, or is it going to be longer term?
Nasdaq-100 futures also advanced 0.2%, pointing to muted gains in technology stocks after the opening bell. This likely reflected investors seeking safety as stocks on Wall Street weakened. WSJ’s Aaron Back explains why the recent shake-ups in the value of bitcoin, dogecoin, ether and other cryptocurrencies may point to obstacles in mainstream acceptance.

China

The past week has witnessed two decisions by Beijing that may be signposts for the rockier road ahead for the highly acquisitive internet titans Alibaba and Tencent. President Xi Jinping recently cracked down on Bitcoin mining, which sent prices of the world’s largest digital coin tumbling.

Europe

The EU regulation sets minimum standards for diesel emissions, in the expectation that automakers would compete with one another to lower emissions. Last week, the European Union slapped Germany’s “Big Four” legacy automakers – Volkswagen, BMW, Audi, and Porsche – with fines totaling $1 billion for running afoul of EU standards. Such disbursement would increase the EU s effect on cutting emissions, both directly and indirectly. The reduction should instead be at least 58% for the EU to be making an appropriate contribution under the Paris Agreement to pursue a warming limit of 1.5C.
But rather than being preoccupied with shortcomings and political wrangling, we should cheer that the EU took a big step in the right direction. It boosts the EU s target for solar and wind energy and seeks to make sure buildings are better insulated. With slightly fewer transactions during the period, the European Union intervened in 158 deals, including banning eight of them.
EU Plans to Plant Three Billion Trees Under Forestry Strategy It wants to absorb more greenhouse gases from the atmosphere and promote biodiversity. At least the EU was honest: European Commission climate chief Frans Timmermans said.

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