Currencies
The U.S. dollar index, which measures the dollar against a basket of six major currencies, sat at 90.351, not far above a two-week low it struck last Wednesday. Dollar index The dollar index closed flat last session at 90.48. The rupee (INR) posted a marginal gain of 6 paise last session as it ended the session at 72.69 versus last Friday’s close of 72.75 against the dollar (USD). They also help consensus weaker dollar positions, as rising crude has tended to pressure the greenback in the past.
“The dollar tends to underperform when you see this broad positive sentiment in markets,” said Rodrigo Catril, senior currency strategist at National Australia Bank in Sydney. The dollar looks weak and the rupee is trading above support levels, hinting at possible appreciation in INR. The risk-sensitive Australian dollar held near Monday’s one-month high at $0.7785. It also held steady at 87.15 pence per euro, its highest since May2020. Ahead on Tuesday, investors are looking to euro zone growthestimates, a German sentiment survey and U.S. manufacturing data to gauge the relative pace of the world’s pandemic recovery.
“The dollar tends to underperform when you see this broad positive sentiment in markets,” said Rodrigo Catril, senior currency strategist at National Australia Bank in Sydney. The dollar looks weak and the rupee is trading above support levels, hinting at possible appreciation in INR. The risk-sensitive Australian dollar held near Monday’s one-month high at $0.7785. It also held steady at 87.15 pence per euro, its highest since May2020. Ahead on Tuesday, investors are looking to euro zone growthestimates, a German sentiment survey and U.S. manufacturing data to gauge the relative pace of the world’s pandemic recovery.
Metals
Earnings this morning include Swiss miner Glencore and dental implant maker Straumann, Irish food producer Kerry Group, Dutch chemicals firm DSM and Danish maker of emergency medical equipment Ambu.
Oil
But a rapid rise to $100 a barrel oil would likely spark talk of overheating, and derail the expected “benign” inflation path that many investors are betting on. Brent crude oil futures are holding on to Monday’s gains to above $63 a barrel in London. Higher oil prices feed into inflation expectations, which have become the key market driver at the moment. Natural gas futures are trading at their highest level since last November. WTI did not settle on Monday because of a US federal holiday.
United States
“Gaining traction is the thought that inflation could rise much faster and sooner than the Fed is currently thinking. It s not just that Donald Trump s administration damaged the transatlantic bond beyond immediate repair. He has been quoted in a variety of financial news publications, such as CNBC, the Wall Street Journal, and the New York Post. We also get a bunch of Fed speakers.
Europe
Nikos Chrysoloras andViktoria Dendrinou What s HappeningNo Exit | Those suffering from lockdown-induced cabin fever should expect no reprieve from EU leaders next week.
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