Open: London Session | Forex, Metals, Oil, Agriculture April 29, 2021

Mind you, the corn and coffee price increases mentioned above are just a few of many examples of prices of basic items jumping. It plots the price performance of commodities like corn, coffee, wheat, and soybeans over the past year. Corn prices, for example, have surged 109% over a year. Coffee prices have surged by more than 30%. Will your morning coffee prices jump? Remember, corn is used in a lot of foods we eat.

less Rupee could touch 73.50 in the near term As the dollar (USD) declined, the rupee (INR) made considerable gains over the past week. FPI sellingWhile declining dollar is positive for the rupee, the trend of foreign portfolio investors (FPI) fund flow has not been favourable. Stocks closed slightly lower, bond yields reduced a little, and the dollar gave up some ground. This led to dollar diving and yields firming which resulted in major currencies gaining.
Government bond yields and the Bloomberg dollar index slipped.

Copper has more than doubled since last year s bottom, but is dwarfed by the massive increases in steel prices. The rally in copper prices from the nadir of the global financial crisis in early 2009 was impressive but proved short-lived. At issue is a dispute that started in 2018 under former President Donald Trump that saw the U.S. impose duties on steel and aluminum from Europe, Asia and elsewhere. Copper peaked in 2011, and then entered a long bear market.
Steel and copper prices, in particular, have shot up.

Since the amount is small, this may not have significant impact immediately but if this trend continues, crude price can come under pressure. Coming Up It’s another monster earnings day, with reports including lenders Natwest and Nordea, consumer goods giant Unilever, oil firm Shell and jet-maker Airbus.

It remains lower than the 2021-2026 prediction, suggesting the market is positioned for a rise in inflation that is then successfully headed off by the Fed. The Fed wants great improvement in unemployment, which is still running at a 6% rate, compared to 3.5% before the pandemic. The US Federal Reserve meet, as expected, has kept rates and the bond-buying program unchanged, reiterating the accommodative stance. Ch.2012$ SAAR (black), Atlanta Fed 4/28 GDPNow (red), NY Fed 4/23 nowcast (blue), IHS Markit nee Macroeconomic Advisers 4/28 nowcast (green), potential GDP (gray).
By this framework, the US central bank can exercise control over individuals’ spending and hence economic growth. According to the National Income and Product Accounts (NIPA) the US personal savings rate stood at 13.6 percent in February 2021 against 8.3 percent in February 2020. The Fed had no choice; failure to do this would have made the governors look silly. The Fed isn’t concerned about inflation in the U.S. economy, whatsoever.
“The Fed remains dovish, all very supportive. In the past, Fed chairs have put a lot of emphasis on this measure.

The EU s top court gives a non-binding opinion in a case concerning the limits of immunity for central bank governors 9:30 a.m. The EU s top court will rule on a case referred from a Polish court in a dispute over unfair terms in foreign-currency loans 9:30 a.m. But in France, Emmanuel Macron s allies are starting to get worried about the challenge posed by Marine Le Pen, despite talking up her supposed incompetence for months. The EU has since retaliated and on June 1 is set to increase tariffs on a list of American products.
It means commerce will continue without the chaotic disruption a no-deal Brexit once threatened. She also says she no longer wants to leave the EU.