Open: London Session | Forex, Metals, Oil, Agriculture August 21, 2020



Wheat sowing for the 2020/21 season ended over the last week, it said, with a final surface of 6.5 million hectares having been planted. MARKET NEWS Chicago soybean and corn futures rose, on course for their second straight weekly rise, although bigger-than-expected U.S. crop yields and dwindling export demand capped gains.


Sterling has climbed over 1% against the dollar so far in August, mostly on continued weakness in the greenback, though recent U.K. inflation data will likely have helped sentiment. The stronger euro may prompt some speculation over a rate cut, but a rate cut is not our main scenario. The appreciation of the euro exchange rate over the summer months could lower the inflation forecasts almost mechanically by between 0.2 and 0.4 percentage points. Learn about China’s propaganda machine in Hong Kong, what’s hot in cryptocurrencies, and what’s ailing the mighty dollar.
Even the Greenback Gets the Blues The mighty dollar is in a funk. Gold might rise before the dollar falls. Hybrid Euribor measures wholesale borrowing costs of banks in the unsecured euro money market. U.K retail sales is coming up, and Purchasing Managers Index data from the Euro-area and the U.S. are due later. The historic level comes after two years when the company hit a trillion-dollar valuation on Aug 2, 2018.


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. While the stock market had its time to shine over the last decade, it is now time for silver to outperform. In a similar manner, silver was already in decline when the Dow reached its peak in February 2020. Together with the recent new all-time high for gold, it is also a signal that you will have to wait long for a new bull market for the Dow.
Silver’s third wave down started at the peak after point C (from where it touched the red line). When the Dow reached the top (point 1) in August 1987, silver was already in decline. This is how gold and silver make up for the underperformance, relative to the Dow, that is created as a result of central bank credit extension (as previously discussed). It took silver almost a decade to surpass the high at the red line, after touching it in 1987.
Gold, a safe-haven trade, advanced.Meanwhile, in the tech space, many firms are benefiting from a prolonged downturn — and continue to gather strength the longer it goes on. It is now silver that is in a similar space to where the Dow was in 1987.


The country’s equities offer significant potential for a rebound, according to UBS Global Wealth, predicting a boost from recovering oil prices and an eventual Brexit agreement. The biggest decline: the SPDR S&P Oil & Gas Equipment & Services ETF (XES), which has lost 28.3% a year for the past five years. to country funds, down to US sectors (energy, financials, for instance) and industries (e.g., oil & gas equipment & services). Global oil benchmark Brent crude was trading 0.33 per cent higher at $45.05 per barrel.
Apple overtook Saudi Arabia’s state-owned oil company Saudi Aramco last month to become the world’s most valuable company. Photographer: Oliver Berg/dpa picture alliance/Alamy Royal Dutch Shell said it’s considering the sale of Norwegian natural gas supplier Gasnor.

United States

However, the danger of the Fed’s targeting is getting proper inflation, which will destroy people’s ability to pay off their debts and cause more economic damage going forward. But the event quickly became, in the words of one Trump aide, “the most disastrous outreach meeting in the history of presidential transition”. Donald Trump threatened to withhold emergency funding from California because the state had ignored his “raking” theory of forest management to prevent wildfires.
Let’s take a picture,” Trump said, ending the meeting. The arrests increased attention on the USPS amid claims the Trump administration is trying to hobble its ability to deliver mail-in votes. Mr Trump again referenced “forest cities” like those of Finland on Thursday, saying they have more flammable trees than California but don’t have any problems with wildfires. There’s an old Wall Street saying that the stock market has predicted 9 of the last 5 recessions and it exists for good reason.
European stock futures are indicated to open higher after modest gains in Asia and a fresh Nasdaq 100 record overnight.
Apple this week made history when it surpassed a $2-trillion market value.The Nasdaq 100 closed at a record Thursday. They don’t have any problem, and what it is, it’s a very small problem,” Mr Trump said in 2018.


Beijing runs a publishing empire that pushes its agenda in the former British colony and drowns out dissent, pro-democracy lawmakers say. In Beijing’s hands, Taiwan would serve as a stepping stone to regional hegemony.


More strikingly, reference rate reforms, massive excess liquidity and the EU recovery fund/support packages have sent the 3-month EONIA/Euribor basis into negative levels that were regarded as unimaginable before. Old EONIA was always higher than the ECB deposit facility rate (DFR), as no Eurozone bank would lend money at an interest rate that is lower than the DFR. EURIBOR and EONIA/EURIBOR BASIS The above-mentioned conclusion holds also for Euribor fixings, as we do not expect ECB rate cuts and the EONIA/Euribor basis is already negative.
The lower bound for current EUR reference rates is not determined by the ECB deposit rate. This unsecured term rate is about to test the risk-free ECB/Eurosystem deposit facility rate (DFR). Looking ahead, the latest comments from senior ECB officials at the start of August underlined that the ECB remains on high alert. At Any Cost German Chancellor Angela Merkel called on European leaders to work together to avoid reviving lockdowns as a resurgence of the coronavirus threatens already battered economies.
Europe’s leaders are loath to return to lockdowns, Brexit talks aren’t going well, and Russian activist Navalny may be flown to Germany. However, the ECB may well hike the tiering multiplier, which would reduce the true excess liquidity that is remunerated at the DFR. Merkel called on European leaders to work together to avoid more lockdowns, while Scotland added Austria, Croatia and Switzerland to its quarantine list, exempting Portugal.