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



Survival TipsI was tired and a little sleep-deprived when I entered the local coffee-shop this morning for my regular dose of caffeine. Anyway, I had much more energy on leaving the coffee shop than I did when I entered it. Thus, “in England the price of Meat might be tripled while the price of Corn rises no more than a fourth.”


Also read: Rupee rises 5 paise to 73.24 against US dollar in early tradeThe annual rate of inflation under ‘Fuel and Power’ category was recorded at 20.94 per cent. The dollar index against a basket of six major currencies was quoted at 89.833, close to the lowest since late February. Outlook The rupee seemed to have brushed off the high inflation numbers and also the FPI outflows as it continued to move up on the back of weakening dollar. The dollar was little changed at 109.02 yen and 0.8982 Swiss franc.
The British pound bought $1.4182, which was near its strongest level since late February. On Tuesday, the rupee had closed at 73.05 against the US dollar. “That’s going to be bearish for the dollar. The euro was steady at $1.2219.


There are signs of rallies in some areas cooling, however, with lumber futures plunging on Tuesday following a historic jump and iron ore s rally pausing. The graph below shows that the trend in inequality measured by the Gini ratio changed when the US completely went off the gold standard. People want to invest in strength in construction (through lumber or steel) and manufacturing (through lithium and cobalt). Industrial metals, such as copper and aluminum have been aided by both effects.
Since 1971, the central bank has not been constrained by physical gold at all.


Brent crude fell 1.1 per cent to settle at $68.71, while US West Texas Intermediate crude dropped 1.2 per cent at $65.49. Brent crude futures, the global oil benchmark, were trading down 0.93 per cent at $68.07 per barrel. Oil prices slumped on the initial reports, the success of which could allow for the removal of U.S. sanctions on Iranian crude, and have continued to slip on Wednesday. The volatility in crude oil and gasoline prices has been clearly reflected in recent years in both the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE).
The sharp increase in the inflation is because of higher crude oil price according to the release. Oil futures are often used by traders of Treasury inflation-protected securities, or TIPS, to offset risks, so they become directly linked to perceptions of overall inflation.

United States

The minutes from the US Federal Reserve’s most recent meeting due later on Wednesday are expected to confirm that policymakers think a rate hike is still in the distance. Forex traders believe upside for the American currency could remain capped amid expectations that the US interest rates will remain low. Markets would also await the Fed meeting minutes for further cues, the note added. In the US, money originates as bank reserves created by the Federal Reserve to pay for US government debt or other assets from commercial banks.
The year began with the Trump corporate tax cut, which was a big shot in the arm for the equity market. If there is a level that is dangerous, then the adventures of Jerome Powell in 2018, his first year as chairman of the Fed, might be instructive. If the Fed takes a more hawkish stance, that trade could unwind. “At the moment, markets are putting faith, after a fashion, in the Fed’s narrative.


A statement posted on the PBOC s official WeChat account said digital currencies cannot and should not be used on the market as they are not real currencies.


The EU s lower court rules in a challenge by Lufthansa against the EU s approval of German public support for Frankfurt Hahn airport 11 a.m. Cancel Culture | Elisabeth Moreno, a Black woman in charge of diversity in President Emmanuel Macron s government, slammed cancel culture in a strong rebuke of U.S.-style wokeness. Yet even though more than 200 million doses made in the EU have been cleared for shipment abroad, China seems to be winning the vaccine-diplomacy battle.
Investor appetite for the EU bonds was nowhere near the levels seen last time around. 9 a.m. EU Parliament debates proposal for waiver on intellectual property protections for coronavirus vaccines 11 a.m.