Open: London Session | Forex, Metals, Oil, Agriculture November 09, 2020



Dollar indexThe dollar index lost nearly 2 per cent last week, as it declined from 94.04 to 92.23. Even as the rupee witnessed higher volatility, it ended the past week almost flat — closing at 74.2, as against preceding week’s close of 74.11 against the dollar (USD). Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. Since the dollar index indicates weakness, the exchange rate of USDINR could move in favour of the rupee.
Forex dealers said a weak dollar overseas and persistent foreign fund inflows also supported the local unit. The dollar index, which gauges the greenback’s strength against a basket of six currencies, dipped 0.06 per cent to 92.16. The company reported earnings of $1.36 per share, or $149 million in actual dollar terms, on operating earnings of $223 million. In the previous session, the rupee had gained 28 paise to end at 74.08 against the US dollar.
Italy is expected to add 2.5 billion euros in spending with the new program, which extends support to more companies compared to an earlier 5 billion-euro aid decree. Largely flat to slight miss currently on equities and the US dollar.The Fed cannot expand a larger Treasury bubble at this point.


Similarly, in a rising silver price environment, the tremendous upside emanating from the remaining 75% production would help strong revenue generation for AXU. Since 2008, AXU has an SPA (read: Silver Purchase Agreement) with Wheaton Precious Metals (WPM) for sale of 25% of the LoM silver production from KHSD. It remains to be seen how AXU will secure its right to derive maximum benefit from a potentially higher silver price environment in future. (Source: (Source: Finviz) As noted earlier, the prevailing silver prices do provide ample room for generating healthy operating margins once AXU begins commercial production at KHSD.
The preceding analysis takes a detailed look at the catalysts that indicate a promising outlook for AXU, regardless of where silver prices are heading over the next 3-5 years. Furthermore, the project’s attraction increases in light of silver’s price outlook in the near term, as well as in the medium-to-long term.
Based on the above, I believe AXU is a promising “long” investment in the silver miners space. At the time of writing, silver last traded at $24.27. Gold’s price will increase dramatically to as high as $20,000 an ounce. Investing in gold will be the best (and perhaps only) way to generate substantial investing profits in this decade and beyond.


Meanwhile, Brent crude futures, the global oil benchmark, rose 2.71 per cent to USD 40.52 per barrel. When headlines struck the other day that Russia and Saudi Arabia were discussing extending the output cuts past January 1, 2021, the market took notice and oil prices leaped. Russian producers are critical of the agreement because they argue it allows the United States to pump more oil and gain greater market share at their loss. On another note, I’d like to write a bit about oil prices, specifically relating to Saudi and Russia output cut extension negotiations.
But also, I question the cohesiveness of OPEC+ on the supply side.

United States

We would need another approximate 100% rise in the Fed’s balance sheet to come anywhere close to where we need to be, speaking particularly about USD shortage alleviation. The greenback weakened against its major rival currencies, as investors started eyeing riskier assets after Biden’s victory.“Joe Biden has won the US presidential election. Personally, my view is that the courts might not go as far as to deem the election void, as Trump’s claims have so far been baseless.
Before Trump was even President of the United States, his Treasury Secretary nominee Steven T. Mnuchin said he was going to get Fannie and Freddie out of conservatorship.
President Donald Trump has so far refused to concede and vowed to challenge the election outcome in several states where he trails. If Trump cedes power graciously, Congress can proceed to iron out the differences in a stimulus plan, which will boost equities too. All you need to do is get yourself a red Trump baseball cap and join your next local Trump rally. As such, the only risk to this investment is that Steven Mnuchin isn’t able to get the PSPA amendment done in time.
Equities should cheer the elimination of the US election risk. Within 72 hours of the election, the Trump team found, validated over 3,500 of them.


Things took a more intense turn when Beijing recently began , also as China detained some high profile Aussie media figures working in the country. An employee at the company was also called to a meeting in Beijing on Monday and told that Australian wine would not be processed he said. Beijing subsequently vehemently denied the charge of discriminatory actions.


Islamist Crackdown | EU governments are mulling a coordinated crackdown on Islamist radicalization, following a wave of terrorist attacks in France and Austria. U.K House of Lords votes on Boris Johnson’s controversial Internal Market BillLike the Brussels Edition?Don t keep it to yourself.