Open: London Session | Forex, Metals, Oil, Agriculture March 11, 2021



If future auctions also draw reasonably strong demand this would be another positive factor for the dollar, according to IG Securities’ Ishikawa. So far the euro zone’s central bank has refrained from large-scale market intervention, and policymakers are divided on whether one is warranted ahead of their meeting on Thursday. “The dollar is the dominant theme in the currency market,and this is just a temporary pause in its uptrend.” Against the euro, the dollar was quoted at $1.1928,nursing a 0.2% loss from the previous session.
Policymakers have also expressed concern about strength in the euro, which is another reason for traders to remain cautious before the ECB’s meeting. The dollar index against a basket of six major currencies was little changed at 91.771. The dollar traded at 108.37 yen, extending a pullback from a nine-month high reached on Tuesday. Against the safe-harbour Swiss franc, the dollar bought 0.9297. The British pound bought $1.3933 after rising 0.3%on Wednesday.


Stabilising crude oil prices would lead to capex by oil producers. This signals that the oil market is tightening and demand is robust, paving the way for an oil rally. Along with a brightening demand outlook, tightening supply conditions are also giving a boost to the oil price. Added to the positive sentiment is the state of backwardation in the oil futures market, where later-dated contracts are cheaper than the near-term contracts. “Given the powerful signals from the U.S. re-opening narrative, it still suggests that the path of least resistance for oil prices is higher.”U.S.
The terminal is capable of exporting roughly 6.5 million barrels a day — nearly 7% of oil demand. Notably, oil price has gained more than 30% so far this year. Brent topped $71 per barrel for the first time since January 2020 while U.S. crude hit the highest in more than two years. Per CME Group data, Brent futures for June delivery were trading about 54 cents below May contracts at the time of writing.
This is especially true as the Organization of the Petroleum Exporting Countries (OPEC), Russia, and the oil-producing allies last week agreed to extend their production cuts into April.

United States

Wednesday’s Nasdaq recovery was largely driven by hedge funds who were forced to pare their bearish bets to limit losses — rather than genuine interest, according to market participants. On this definition, fair value is the expected cost of carry, which should generally be close to the consensus expectation of the neutral fed funds rate over 10 years. For credit markets, however, the returns just kept coming once the Fed stepped in with its strong policy support in late March.
He has been quoted in a variety of financial news publications, such as CNBC, the Wall Street Journal, and the New York Post.


ECB President Christine Lagarde is expected to explain who presented the better arguments, and how the central bank will react if investors push yields even higher. The ECB must take a position on rising yields, another vaccine’s coming to Europe, and U.S. stimulus reaches Biden’s desk. The EU has secured 200 million doses, with an option for a further 200 million, although supplies aren’t expected to arrive until the second quarter. The spat risks souring relations amid a wider dispute over Brexit trade rules that could end up in legal action.
So far, bond purchases under the ECB s flagship pandemic program have barely picked up despite its much-touted flexibility. Investors have been testing the ECB’s resolve to rein in rising bond yields. Polluting Costs | The price of permits to pollute in the EU is breaking new records day after day. Current polls suggest Angela Merkel s Christian Democratic Union is on track for its worst performance ever in the state.
TikTok Concerns | The main data-protection watchdog in the EU warned that TikTok, the Chinese-owned video-sharing app, may be sending some European user data to China.
The result could offer clues about the country s post-Merkel future.