Open: London Session | Forex, Metals, Oil, Agriculture March 15, 2021



Brent crude, the international standard, added 47 cents to $69.69 per barrel.The US dollar rose to 109.18 Japanese yen from 109.02 yen late Friday. Viktoria DendrinouWhat s HappeningFiscal Taps | Euro-area finance ministers meeting virtually today are expected to pledge to keep fiscal policy supportive through 2022. The environment of rising yield is seen as a short-term boost for the U.S. dollar (UUP). The euro fell to $1.1944 from $1.1949.


Oil prices are up as economic data from China added to signs of recovery from the pandemic. The false rally in commodities after the GFC should be a warning:A final important issue concerns oil, which has enjoyed a dramatic recovery in the last few months. Higher oil prices were driven by hopes of steadily decreasing supply. These are Capital Economics projections for oil demand:This could be as far off as the predictions of a peak in supply a decade or so ago.
Investment resulting from any green new deal might drive up the prices of other commodities, but it would be bad for oil. It lost 41 cents to $65.61 per barrel on Friday.

United States

The tech-heavy Nasdaq fell 0.6 per cent, to 13,319.86.The Russell 2000 index of smaller company stocks advanced 0.6 per cent to 2,352.79. Bond pros are also watching to see whether Fed officials will tweak their interest rate outlook, which now does not include any rate hikes through 2023. On our estimates, the US economy will reach pre-COVID-19 output levels by the current quarter,” said Chetan Ahya, global head of economics, ina note. Many expect interest rates to continue to rise in the coming months and investors will have to continually grapple with the anxiety about economic overheating and Fed tightening.
There have also been positive signs from the US, with the weekly Covid-19 death toll declining to a four-month low and new infections dropping. More recently we seen a much more brisk ascent, if only in nominal terms, thanks to the Fed’s relentless injections of liquidity. “The US is now vaccinating more than three million people a day, with President Biden now saying all adults will be able to get a shot by May 1.
The Capital Spectator has been quoted by a range of news organizations, including The Wall Street Journal, Reuters and others.


Disastrous election results for Angela Merkel, pressure on vaccines and a big week for central banks. Voters in the southern state of Baden-Wuerttemberg, Germany’s third-most populous, shifted towards Greens and Liberals, which could see Merkel’s conservatives ejected from its ruling coalition there. Malmstrom was long seen as a front-runner given her experience as EU trade commissioner.