Open: London Session | Forex, Metals, Oil, Agriculture July 19, 2021

TRADING-THE-LONDON-FOREX-OPEN

Currencies

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading up 0.02 per cent at 92.70. The Indian Rupee started on a weaker note this Monday against the greenback tracking the strength of the dollar, Reliance Securities said in a research note. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. At the interbank foreign exchange, the rupee opened at 74.73 against the dollar, then fell further to 74.77, registering a fall of 20 paise over its previous close.
While we do not think the strategy review points to a significant dovish shift in policy, possible changes to the forward guidance introduce some additional near-term uncertainty around EURUSD. On Friday, the rupee had settled at 74.57 against the US dollar. For each reason, I think patience is the right approach for now and stay on the sideline on the Euro.

Oil

Meanwhile, international oil benchmark Brent crude declined 1.16 per cent to USD 72.74 per barrel. Global oil benchmark Brent crude futures fell 0.57 per cent to USD 73.17 per barrel. US crude slipped 83 cents to $70.98 a barrel.

United States

Asian shares fell across the board, as pessimism took hold following rising COVID-19 infections regionally and Wall Street’s first weekly loss following three weeks of gains. All the three major indices – Dow Jones Industrial Average, S&P 500 and Nasdaq – lost about 0.8 per cent. We’ve discussed monetary policy and the Fed often enough not to belabor all of that again; which comes down to Fed watching all the way until Jackson Hole. As well as published in prestigious publications, the New York Times, Wall Street Journal and The Economist, among others.
His views have been quoted in Barron’s, the Wall Street Journal, on CNN and now on his own ingerletter.com web site.

Europe

Biden (probably by Chancellor Merkel) to reopen regular air travel to Europe; well it makes little sense given a pandemic roaring back to life, so to speak. The ECB will incorporate the new Strategy Review into its official post-meeting statement.

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