Close: London Session | Forex, Metals, Oil, Agriculture July 23, 2021

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Agriculture

Weak export demand is also weighing on soybeans, USDA data showed.

Currencies

The US Dollar could take full control again, and it could dominate the currency market if the United States data comes in better than expected later today. According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the rupee appreciated on dollar sale by exporters and corporate dollar inflows. In some cases, the US dollar gained more, such as against the Australian dollar, because the risk-off move generated a decline in US equities, too.
Going ahead the inflows could continue in domestic market amid few more IPOs while on global front dollar remains relatively strong following reflation and policy divergence. However, the precious metal rebounded from lows as the US Dollar bounced off a three-month high, and the stock market rallied amid risk appetite. That could see the anti-risk US Dollar and Japanese Yen extend upward while commodity-bloc currencies trade heavy alongside shares. In the meantime, we should expect choppy range trade as the dollar shifts with the ebbs and flows of risk sentiment.
During the first days of the week, when the stock market indices declined and the US dollar gained ground, gold remained stable above $1,800. Fundamentally, better than expected data could help the Dollar Index to resume its growth. Sluggish action in the G10 FX majors reflected a tinge of risk aversion, with the sentiment-sensitive Australian Dollar tracking lower while its anti-risk US counterpart edged up.

Metals

Gold (XAU/USD) prices are currently trading at a critical level of support, threatening a break below $1800, a level that has proven to hold strong on numerous occasions. As noted by TD Securities, money managers have not significantly increased their long positions in gold, ignoring the decline in real yields in the United States. However, due to high inflation rates in the United States, the Federal Reserve may relax stimulus, which hurts the price of gold.
Radomski is the author of Sunshine Profits’ Gold & Silver Trading Alerts and many of company’s investment tools. Gold is consolidating between $1800 and $1810, but it needs to get back above $1812 if it is going to extend its recovery for the fifth week. Gold prices for the latest contract on MCX are trading down by 0.4% at Rs 47,447 per 10 grams. less Currently, the gold market is ranging. Arkadiusz is the author of the monthly Market Overview reports and Gold Monitor News at Sunshine Profits.
Copper is up for the fourth consecutive session, and the CRB Index is up about 1.8% this week, coming into today. What does each mean for gold?

Oil

Crude oil prices and (currency) exchange rates have a major role in the prices of PTA and MEG. Recently, West Texas Intermediate (WTI) crude oil traded as high as about $77.00 per barrel. The trading week started with a slide in the crude oil price triggered by the OPEC+ deal regarding the supply level in the market. If that’s the case, it would mean oil would have to drop below $30.00 per barrel. This is the asset responsible for the financial markets’ gyrations this week, so a close look at oil prices is mandatory for identifying future trends.
The production in OIL declined due to less than planned contribution from workover wells, drilling wells and old wells. Oil prices were little changed, underpinned by expectations that supply will remain tight as demand recovers. WTI crude oil price currently trades above $71, a sharp increase from its weekly low. A barrel of oil traded at prices never seen before. At its core, this says the short-term trend for oil prices has changed direction and is now pointing downward.

United States

A slower-than-expected recovery in the labor market may serve to soothe tapering fears as Fed officials monitor both inflation and employment figures to set monetary policy. The bond market is quieter today, with the US 10-year yield little changed at 1.29% and European bond yields mostly 1-3 basis points higher. During Trump s second two years, with Democrats in charge of the House, divided government produced a rapid and massive response to the coronavirus pandemic.
An unverified document, circulating among investors and seen by The Wall Street Journal, appeared to be an official communication detailing new, tougher guidelines for the sector.
It could jump towards fresh new highs if the US data comes in better than expected later. less Wall Street equities edged toward all-time highs on Thursday as investors digested strong corporate earnings amid revitalized reflation hopes. Wall Street futures rose, while investors awaited a flash reading on business service data for clues on the health of U.S. economy. If the current trend continues, Tilray will become one of the top cannabis stocks benefiting from the increased endorsement of the legalization of marijuana in the US.
With the highly contagious Delta variant now spreading across the US, the Fed will need to ride the wave before it could change its course anyway. The US earnings season has fared well so far, with around 86% of S&P 500 companies beating analysts’ EPS forecasts.

China

In Asia, Hong Kong stocks fell as deepening concerns over Beijing’s tighter regulations weighed on sentiment.

Europe

“All eyes will be on next week’s Federal Reserve Policy meeting after the European Central Bank (ECB) held the dovish stance with status quo on interest rate. the greenback If that wasn’t enough, With the European economy still drastically underperforming the U.S., it’s actually more likely that the ECB increases the pace of its bond-buying program. With the current vaccination pace EU will most likely also takeover there within a week. While investors worried that the European Central Bank (ECB) would turn hawkish as the summer months heat up, I warned on Apr.
What’s the talk EU surpasses USA in vaccinations as EU reaches 57% of the population having received 1st dose against 55.5 % in USA. More significant falls in rates through Europe after the ECB’s July meeting saw no change in PEPP commentary. less Things were mostly quiet on Thursday, short of a little intraday volatility around the ECB decision. His feature articles have been published on: FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc.
Regarding 2nd dose EU only lags a bit behind with 45 % against 48%.

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