Open: London Session | Forex, Metals, Oil, Agriculture January 27, 2021



The riskier Aussie dollar gained 0.1 per cent to 77.51 US cents, adding to Tuesday’s 0.5 per cent rally. The dollar index was little changed at 90.172 early in the Asian session, holding Tuesday’s 0.2 per cent decline. The euro was mostly flat at $1.21625 after rising around 0.1 per cent in the previous session. “The stronger the world economic outlook, the weaker the US dollar,” said Joseph Capurso, currency analyst at Commonwealth Bank of Australia in Sydney.
“Powell is going to make clear that they don’t see any near-term exit from their very easy policy stance, and that’s going to pull the dollar down.” The British pound climbed as high as $1.3753 for the first time since May 2018 on Thursday, before trading 0.1 per centhigher at $1.3746.


US gold futures settled down 0.2 per cent at $1,850.90.US crude oil futures settled at $52.61 a barrel,down 16 cents or 0.30 per cent. Spot gold fell $-5.4215, or-0.29 per cent, to $1,849.57 an ounce. Earnings of Dutch telecoms firm KPN and production figures of gold miner Fresnillo are also due this morning.


“The crude oil draw-down has offered some support to the market in early trading this morning with the market expecting abuild,” ING economics said in a note. Brent crude futures settled at $55.91 a barrel, up 3 cents or 0.05 per cent.

United States

After much ado about a potential tapering of its QE program, Fed officials took to the airwaves in mid-January to hush a potential taper tantrum. The main deviation in the post-1999 period is around 2012 when the hawks finally capitulated on their belief that the Fed would rapidly normalize rates. Powell is due to speak at a news conference after the Fed’s two-day policy meeting that ends Wednesday. The January Fed policy meeting set to conclude on January 27 is the first of the Biden presidency.
Europe’s vaccination drama, Fed in focus and a short squeeze gets supercharged. The New York Nowcast estimate for 4Q’20 GDP is at +2.58%, while the Atlanta Fed GDPNow model is pointing to loftier+7.5% growth. He is regularly cited in the Wall Street Journal, on CNBC and in the Financial Times.


The EU responded with fury to the drugmaker s warning of significant delays, vowing to enact a transparency mechanism to monitor exports.