Close: London Session | Forex, Metals, Oil, Agriculture July 26, 2020



The lack of a common bill market may also limit the euro’s ability to gain a significant market share from the dollar. Dollar weakness could boost equities in the short term, he said, adding that “ultimately it weakens as the debt situation is really remarkably bad for a developed country.” Last week was dominated by relative strength in the Canadian Dollar and the Euro and relative weakness in the U.S. Dollar. The historian Harold James titled his piece on Project Syndicate, “Late Soviet America,” that foretold the end of what he called “dollar hegemony.” While we expect a cyclical decline in the dollar, we don’t anticipate that the dollar’s role in the world economy, as the numeraire is going to change anytime soon. If the dollar collapses below support, then gold could breakout above $2000 earlier than I expected. The dollar declined even further, while the metals-gold, silver, palladium, copper, and platinum held gains or posted more gains.


I’m happy to report silver prices finally confirmed a new bull market and exceeded the 2016 high ($21.23). If one extrapolates just based on recent history, (not the 1970’s but 2011), silver could be seven times higher than its current price relative to equities. You already see a lot of concern as gold continues to trade higher in a parabolic manner. If speculators begin to pile in, I see the potential for an explosive rally higher (like silver). A mere 50-point span, but fraught with everything the forces of resistance could throw down upon rising Gold. But then given the almost resistance-less span of twice that distance, Gold added those additional 100 points to its pile in just the past 13 trading days. On a side note, I was barraged by people responding to this tweet – the gold bugs were telling me the Fed would pay for everything through inflation.


The exchange has sought permission from SEBI to launch options on spot in guar gum, soyabean, refined soya oil and chana. It is an empty vessel, with no evidence or substantive detail. As a natural gas monopoly in Russia, the company is expected to transfer 110 bcm of gas per year through both of its Nord Stream pipelines to Europe. By having close political ties with the Kremlin, Gazprom has the privilege of being a natural gas monopoly in Russia. Europe remains to be one of the biggest foreign markets for US’s LNG, showing double-digit growth last year, and the threat to impose sanctions made sense for Washington.

United States

The California Democrat spent much of her weekly press conference sharply criticising the president and his administration, saying of Donald Trump: “Well, I don’t think he understands anything.” Currently, we are focusing our attention on the Nasdaq, which is currently being driven by the five largest mega-cap names. The Trump administration and Republican lawmakers have maintained that their aim was to “repeal and replace” the health care act, despite showing no alternative plan. President Donald Trump, who famously resisted wearing a mask and stressed that mask-wearing recommendations from his public health experts weren’t requirements, this week changed his tune. The “consequence” of the Fed’s actions isn’t necessarily a failure in the stock market. The problem is that those insurance companies are likely going to be from Russia and to them, sanctions from the US are not going to have a material impact. One, it quickly added as many members as possible thus greatly expanding its geographical extent, and two, it lost that single unifying factor in the form of USSR.


Oddly enough, the report says there was no manifest Russian interference in the 2016 Brexit referendum. The EU’s Recovery Plan entails the issuance of a collective bond. The UK is on course for another 30,000 deaths by the first anniversary of the coronavirus pandemic unless Boris Johnson changes strategy, independent experts are warning. Boris Johnson has warned of the danger of a “serious spike” in coronavirus infections if people “take liberties” with social distancing rules. Furthermore, the European operations provide a platform for growth among European financial institutions, provided the company can navigate the more complex regulatory structure in the European Union. Of course, for Germany, France, and Italy to successfully resist US encroachment they would first need to transform the EU into something closer than a federation.