Open: London Session | Forex, Metals, Oil, Agriculture June 10, 2021

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Currencies

Kathy Lien Follow The euro has a big day ahead, with a monetary policy announcement and U.S. inflation report on the calendar. The euro has a big day ahead, with a monetary policy announcement and U.S. inflation report on the calendar. The euro moved quietly higher ahead of the European Central Bank’s monetary policy announcement, which tells us that investors are hoping for optimism. | European Central Bank officials will decide today just how much monetary stimulus the euro zone needs as it emerges from coronavirus lockdowns over the summer.
German bond yields and the euro are strong and, by initiating the discussion prematurely, they risk setting back the recovery. Japan is forecast to post 2.9% growth this year while the economies of the 19 European countries that share the euro currency are collectively expected to expand 4.2%. The Aussie and New Zealand dollar were a shade lower too.That left the dollar index marginally firmer at 90.140.
Other currencies, such as sterling, the New Zealand and Australian dollars, traded lower on the back of U.S. dollar gains. Prior to the rate decision, the Canadian dollar traded strongly, with USD/CAD dropping below 1.2060. It did away with its own currency, the colon, in 2001, and replaced it with the U.S. dollar.

Metals

Precious metals like gold and silver are also rising on inflation fears as these often act as an inflation hedge. In his writing and research, Sumner specializes in monetary policy, the role of the international gold market in the Great Depression, and the history of macroeconomic thought. His thoughts on gold are captured each week on a program called Gold Game Film in collaboration with Kitco News and TheStreet.com. Prices for a wide range of commodities from copper to oil to timber have been skyrocketing.
He is also the co-author of The Goldwatcher: Demystifying Gold Investing.

Oil

Notably, oil price jumped to $70 per barrel for the first time since 2018 on optimism over higher energy demand and tightening supply.

United States

Inflation also increased across the globe, with many experts casting doubt on the Fed’s view that the uptick in inflation will be temporary. “Markets had been optimistic on demand as the US enters the peak summer driving season,” analysts from ANZ Research said in a note on Thursday. Though the US markets corrected overnight, Asian markets and US stock futures turned positive in early morning on Thursday. The Fed wants us to believe that this is what matters most, and if that is true, then rates are going to stay low.
Back then, the excitement of new technologies combined with growing confidence in the Fed had expectations running high. As long as the Fed is the monopoly supplier of reserves, it can suppress yields to its heart s content. Although at least this time the Fed isn t calling it anything like that. Further, for providing better service to customers, it has strategically located manufacturing plants at Urse and Ratnagiri in Maharashtra and Masar in Gujarat.
Wall Street EPS forecasts were rising healthily. Wall Street EPS forecasts are rising healthily.

Europe

The European Central Bank will announce its latest policy decision, new meme stocks keep joining the frenzy and tensions remain between the U.K. and the EU. The question for the ECB tomorrow is whether the growth and inflation outlook are strong enough for the central bank to talk taper. The ECB may opt to avoid taper talk until data catches up with expectations. It comes with Boris Johnson attempting to backtrack from a legally binding agreement that the U.K. spent years negotiating to secure its orderly withdrawal from the bloc.
Fundamentally, the Eurozone’s outlook is very bright, but the ECB is supposed to act on actual data and not data expectations.
John AingerWhat s HappeningBrexit Tariffs | The EU could impose tariffs and quotas on the U.K. as a bitter dispute over trade with Northern Ireland escalates. If the ECB avoids taper talk, EUR/USD will sink towards 1.21 in disappointment. The remaining 20 EU members are scheduled to go live by July 1. She s accompanied on England s southwest coast by fellow European heavyweights French President Emmanuel Macron and Italian Prime Minister Mario Draghi.

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