Open: London Session | Forex, Metals, Oil, Agriculture January 12, 2021



“US dollar index extended gains this Tuesday morning in Asian trade against major peers as the prospect of massive fiscal stimulus pushed US yields higher,” the note added. However, the dollar index indicates the potential strengthening of the dollar from here, which can weigh on the Indian currency. The 10-year benchmark hit 1.15% in Asia trading Tuesday, its highest since March, and the Bloomberg Dollar Spot Index was on track for its fourth straight session of gains.
While the current price levels can act as a roadblock, the dollar index might appreciate from here considering the momentum. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.12 per cent to 90.57. Investors are weighing a stronger dollar and rising Treasury yields amid expectations for new stimulus spending. Since registering a low of 89.21 last week, it has recovered strongly, and the momentum seems to be shifting in favour of the dollar.
Turning away from extremism.And finally, here’s what Cormac Mullen is interested in this morningThe jump higher in Treasury yields is beginning to exert upward pressure on the much-maligned dollar. The euro, sterling and Japanese yen were flat against the US dollar this morning in Asian trade. What might have saved rupee against the soaring dollar on Monday should have been the foreign inflows.


The firms asked to consider share buybacks include miner Coal India, power utility NTPC, and minerals producer NMDC. Gold prices steadied after a recent losing run.


The Wall Street investment bank had previously predicted oil would hit $65 by year-end.

United States

This figure shows the “federal funds” interest rate, which is the interest rate targeted by the US Federal Reserve when it conducts monetary policy. A vote to impeach Donald Trump is on the horizon, there’s fierce debate about social media and free speech and the U.K. is threatening stricter restrictions. Though Trump’s tenure ends in nine days, power in the Senate has flipped to the Democrats who have long begrudged the oversized influence of social media.
In other words, we should be OK, providing the Fed keeps rates low, and providing stock market investors don t get too carried away. Negative yields ended suddenly and dramatically as soon as the Fed started to talk about tapering off that support, in what became known as the Taper Tantrum. The first figure shows the interest rate for borrowing money for a 30-year fixed-rate mortgage in the US. With U.S. President Donald Trump almost out of office, the 27-nation bloc will spend much of this year trying to repair the damage caused by his America First policies.
The only precedent for yields this low came in 2012-13, after the Fed announced that it was resorting to indefinite quantitative easing bond purchases. The economic calendar during the second week of January will provide some key insights into the US economy, which appears to have backtracked in November and December. Interest rates have been declining for several decades, both in the US economy and around the world.


We return from the holiday break this week with a preview of the EU’s major policy plans for 2021. Today, our primer on trade.Trade will preoccupy the EU in 2021 on several fronts.