Close: London Session | Forex, Metals, Oil, Agriculture September 28, 2020

Downtrend scenario The downtrend may be expected to continue, while the corn market is trading below resistance level 321, which will be followed by reaching support level 262. Uptrend scenario An uptrend will start as soon, as the corn market rises above resistance level 375, which will be followed by moving up to resistance level 390. Downtrend scenario A downtrend will start as soon, as the soybean market drops below support level 854, which will be followed by moving down to support level 816.
Over two decades ago Jay got his start at the Kansas City Board of Trade in the Wheat Futures pit. Currently, wheat can correct that cycle in 3,7 or 11 swings.

Previous periods of dollar overvaluation relative to the fair value implied by real yield spreads have reflected bullish dollar sentiment. Keep an eye on the US Dollar Index, as the US dollar strengthens, which works against the value of the Nasdaq 100 and stocks in general. Dollar (UUP) One reason why we see the futures rising is because the dollar is weakening today, with the index down about 35 bps to 94.20. Any sharp equity market decline would likely occur alongside a drop in inflation expectations, placing upside pressure on U.S. real yields, and causing dollar strength.
This suggests we would need to see significant U.S. equity underperformance in order for the dollar to continue its recent rally. DXY (inverted), SPX, and 10-Year Breakeven Inflation Expectations Source: Bloomberg However, despite the recent slight rise in U.S. real yields, the broader trend remains dollar bearish. AxiCorp’s chief market strategist Stephen Innes said gold prices will be influenced by the movement of the dollar and a big move could come after the presidential debate.
Over the past six months, however, the dollar has significantly outperformed relative to real yield spreads despite a rise in bearish speculative positioning. The dollar’s ascent, however, stalled towards the weekly closing, as the US stocks recovered ground and lifted the market mood. Still, the yuan has swung far less this year than freely traded currencies like the Australian dollar or British pound.

For this reason, many investors prefer trading silver than gold, especially if the trading strategy is one based on scalping or swing trading. Later on in 2008, he began researching areas of the gold and silver market that, curiously, the majority of the precious metal analyst community have left unexplored. The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions. Due to the relatively limited supply and changes in industrial uses, the price of silver varied, and many times it reacted differently than what gold would suggest.
After the silver and gold prices corrected this past week, we may see a bounce in the precious metals. Silver more than tripled in less than three months, while the price of gold printed above $2,060. Silver is one precious metal known for its increased volatility when compared with gold. In my newest YouTube video update, Silver Update Setting Up For Big Move In 2021, I explain what is taking place in the silver market and price.
Also, the holdings of the largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, dropped by 0.02% last Friday, which reflects market sentiments. Strong demand from the investing community for both gold and silver products led to the move higher.

This means that more than 90% of the company’s oil production for H2-2020 is covered with crude oil hedges, as per my estimate. Crude oil prices have fallen three of the last four weeks on a lack of visibility on short-term demand and are starting off the new week a bit soft. Furthermore, a large debt load makes it difficult for the company to stand firm in tough scenarios with oil prices staying below $35 per barrel for an extended period. Saudi seaborne crude exports for last week were seen at 40.5 million bbl (5.8 million bpd) compared to the revised 47.5 million bbl (6.8 million bpd) the week prior.
If infections continue to surge, then it could force governments around the world to adopt a wave of new travel restrictions, hurting oil demand, and pushing prices lower.
Therefore, I think the company’s cash flows likely won’t decline sharply, even if oil prices crash again in 2020. But (NYSE:DVN) can still generate free cash flows with oil currently trading slightly below $40 per barrel. I think the company is well prepared to face the high-$30s to low-$40 a barrel oil prices.
The deal talks show how consolidation in the oil and gas industry is picking up, as low energy prices drive some independent producers to seek scale through mergers. less Oil prices are creeping back up as hopes for a relief package, and heavy traffic and industrial data out of China, are raising demand hopes.

Later on Friday, US labour market data is also due (last before the US election). After plunging in the first quarter due to high provision expense and losses on trading securities, earnings of Northfield Bancorp, Inc. (NASDAQ: NFBK) recovered in the second quarter. BEFORE THE BELL Wall Street futures rose as hopes of a global economic recovery were supported by data showing continued growth in China’s factory activity. Wall Street futures rose as hopes of a global economic recovery were supported by data showing continued growth in China’s factory activity.
Consider the US investment-grade benchmark via Vanguard Total US Bond Market (BND), which posted a slight 0.1% slide last week. Dallas Fed Manufacturing Business Index for Sep: Prior 8.00 COMPANIES REPORTING RESULTS No major S&P 500 companies are scheduled to report. Since its recent high on September 2, the NASDAQ Composite has now entered correction territory, losing 11.5% of its value in the 15 trading sessions since then.
Meanwhile, Nasdaq short interest rose 0.7 percent p/p to 9.48 billion mid-September, essentially on par with the end-June total of 9.51 billion, which was the highest since mid-September 2008. Benchmark indices traded on a bullish note today, amid positive global equities as hopes of the US government to announce a stimulus package cheered investors. Pepsico DailyThe embattled home furnishings and housewares giant, Bed Bath & Beyond (NASDAQ:BBBY) reports its fiscal Q2 earnings on Thursday after the market close.

Beijing maintains a tight grip on the currency through capital controls, intervention via state banks, and through the narrow daily range that it sets for onshore trading. Now the Beijing city government on Monday warned companies to avoid importing frozen food from countries where the virus is rampant. As far as future talks are concerned, Beijing warned that the current deal is “dirt and totally unacceptable”. Although the company claims the letter is fake, questions in it regarding systemic risk are real for investors and Beijing.
In an editorial published by the English-language China Daily, Beijing castigated American hypocrisy over its claims to be a paragon of “fair competition”. China s Carbon Target Moves Big Economies Into Radical Consensus Can bold goals from Beijing to California keep hope alive for a 1.5 C future? Flying Cars and Masks at Beijing Auto Show Thousands thronged the only major automotive show in the world this year.

European banks are being paid billions by the ECB to borrow cash, but still aren’t lending because they fear losses, while low rates are killing their margins. The emergence of the European Union’s single market created another sphere of influence in the world, albeit regional. Coming up…European Central Bank president Christine Lagarde gives testimony to the European Parliament at 9:45 a.m. where she is expected to call for more fiscal stimulus. Drosten, whose subsequent role advising Merkel s pandemic response has sparked comparisons to Anthony Fauci in the U.S., sprang into action.
Staying with politics we’ll see the resumption of Brexit negotiations between the UK and the EU.
One, for instance, is the ECB decision on the 29th of October. Most were American, but some were based in the EU and Britain.