Close: London Session | Forex, Metals, Oil, Agriculture May 25, 2021



The dollar weakened, with the ICE U.S. Dollar Index declining nearly 0.3% to 89.61, its lowest since early January. While the Canadian dollar remains boosted by the country’s ongoing economic recovery, the US dollar continues to slide lower. The US dollar basket (DXY) is also trading just above a critical support level at 89.16 with a break below exposing levels last seen nearly three years ago. The dollar index and Yield with room to the downside may be factors to boost the index higher while a turning should strengthen the mentioned resistance level on ES.
Dollar slipped amid decline in US treasury yields, rise in risk appetite in the global markets and expectation of poor economic data from the US. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.26 per cent to 89.61. The currency has also gained amid a broader bout of dollar weakness. The euro also appreciated against the dollar as the yield on 10-year Treasuries slid to 1.594%.
The dollar fell against a basket of currencies, while spot gold prices inched up. The dollar sank to the lowest level since January as the comments helped calm investor nerves about tightening monetary policy.


Because if it has… During major bull runs in gold, gold miners typically outperform the precious metal by a significant margin. Radomski is the author of Sunshine Profits’ Gold & Silver Trading Alerts and many of company’s investment tools. less Anti-fiat gold prices spent most of Monday consolidating as the yellow metal’s upside momentum slowed. Over the next 24 hours, gold will likely see some volatility around US conference board consumer confidence data and Fedspeak.
Gold remains firm but holding a little below last week’s high, around $1890. Yesterday I noted that gold is telling us that the Fed is indeed going to let inflation run hot. Gold and miners aren‘t flashing warning signs, and the silver outperformance isn‘t a call to the exit door. There are two pieces of news for gold – one good and one bad. To many Bitcoin fans, or holders, as they are also called, any association with gold is welcomed. Truth be told, it will have more chances of survival if treated as an asset just like gold, instead of a currency.


Oil prices slipped as expectations of an early return of oil exporter Iran to international crude markets waned. Meanwhile the United Arab Emirates (UAE) continued to receive fuel oil cargoes from around the Arab Gulf and re-exporting fuel oil to East Africa. Brent crude futures, the global oil benchmark, fell 0.50 per cent to $68.12 per barrel. Booming North American demand for renewable diesel, a clean-burning road fuel that refiners can produce from canola oil and other feedstocks, has added to interest in the crop.
Iraqi fuel oil exports bounced back after failing to register an export cargo for the first week in six months. The volatility in crude oil and gasoline prices has been clearly reflected in recent years in both the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE). The deal makes the Deer Park, Texas, facility the first foreign refinery that Mexico’s state-run oil company will own solely in its history. While most businesses were hit hard by the coronavirus-induced lockdowns, the demand destruction and price plunge associated with oil was like no other.
Cabot Oil & Gas Corp: Credit Suisse cuts target price to $19 from $20, following the company s unexpected merger with Climarex Energy. Canada is the biggest global producer and exporter of canola, a variant of rapeseed, that crushers process into oil and meal.

United States

Transitory Fed officials pushed back against the idea that higher inflation would last long enough to put pressure on the U.S. economic rebound. First, the US stock market is almost certainly headed higher in the long run, making current prices look cheap in the future. Neither inflation nor an early Fed taper are the main risks to the stock market and other risk assets. is lost in administrative fees, the cost of interest rate payments is almost non-existing when the Fed holds a large share of public debt.
While the rise in the monthly net new client accounts at US brokerages is impressive, the US rise in the US stock market is not.
Because of the huge financial stimulus delivered by the Fed and then by the US Government, the US stock market divergence with the rest of the world increased exponentially. However, what followed was a strong bounce, which led to the US stock market indices making new all-time highs. BEFORE THE BELL Futures for Canada’s main stock index rose, tracking Wall Street futures, as inflation worries eased. Markets riseDovish reassurances from Fed officials are helping push global stock gauges higher.
Increased expectations in February that the Fed would move to combat rising inflation sooner than anticipated fueled early year declines in bonds from Latin America, Asia and Africa.


The second reason to smother bitcoin applies to mining particularly: The energy intensity of “mining” increasingly runs at odds with Beijing’s environmental goals. Capital outflows between 2014 and 2016 caused a drop in China’s foreign-exchange reserves by around $1 trillion, and Beijing has spent the years since narrowing any potential escape routes. A January 2020 trade pact between Washington and Beijing promised greater access to China’s financial sector for American institutions.
With tensions running high, Washington and Beijing have pushed to decouple technology and trade. The third reason is unlikely to be mentioned in press communiqués, but remains a core priority for Beijing. President Xi Jinping spoke with Iranian President Hassan Rouhani yesterday to offer his support for Tehran s reasonable demands on nuclear matters. Friday’s statement is unlikely to be the last turn of the screw emanating from Beijing.


They argue that extraordinary times call upon extraordinary measures: ECB should either cancel the debts of member states or transform the debt into perpetual bonds with zero-coupon rates. Furthermore, one could add other “dividends” such as interest paid on deposits (due to the negative deposit rate from the ECB), which could further brighten this calculation. EU leaders will discuss today how to distribute the burden of the bloc s plan to stem climate change.
European Central Bank President Christine Lagarde said on Friday that it is too early for the ECB to talk about tapering its €1.85 trillion emergency bond purchase program. The EU’s Economic and Financial Committee, which coordinates policies among member states, has set up a working group to investigate this problem. As with other EU programs, Eurosystem national central banks and the ECB purchase the public securities, which today aggregate to €1tn. 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.
Companies in Switzerland are caught in a Brexit-like standoff with the European Union over a framework agreement. Oversubscriptions are the order of the day for EU bonds. The ECB concurrently continues the Asset Purchase Programme (APP) with a monthly pace of €20bn.