Open: London Session | Forex, Metals, Oil, Agriculture November 12, 2020



Dollar indexThe dollar index gained last session and closed marginally above the resistance of 93. However, the rupee shows weakness despite substantial foreign inflows, largely due to the global trend in the dollar, which has been bullish over the past few trading sessions. The rupee (INR) ended the last session 20 paise lower at 74.37 against the dollar (USD). It has been gaining since Monday because of considerable dollar demand. So even though inflation is more likely to be much lower in the Euro area than the US in 2021, inflation expectations could still rise.
ECB Support | The European Central Bank sees emergency bond buying and long-term loans to banks as its primary levers for providing further support to the euro-area economy. The euro area s economic outlook has darkened considerably in recent weeks as record-breaking coronavirus cases across the region have forced governments to reintroduce restrictions on activity.


Hope for more positive vaccine news and plateauing Covid cases, a possible shakeup in Boris Johnson’s inner circle, and OPEC production may stay low for longer. Importantly, oil prices, which have been used as a hedge to counter a fall in the industrial economy, rose sharply by 10% as FAANG issues fell.

United States

As meth floods into the US, there’s some hope, as shown by the CBP’s latest meth seizures, that the newly erected border wall is possibly working. -Fox News The latest meth seizures come as President Trump has had 371 miles of border wall installed on the southern border. You know, no politics, just looking at the economic data, the Federal Reserve (Fed), rates, etc.-all that wonderfully boring stuff. Markets don t appear wholly convinced that the Fed means what it says about letting the economy run hot until inflation exceeds 2% on average for a while.
Of course, the new administration may extend relief measures, but that would increase the already high probability of a U.S Government credit downgrade. The US bond market was closed on Wednesday in observance of Veterans Day after the 10-year yield reached the highest level since March. Getting the US population back to normal work activity has in fact been occurring rapidly since May 2020 Continuing Claims for Unemployment Insurance peaked just shy of 25mil.
His refusal to concede has been headline news across U.S media.The markets couldn t care less, though. Trump is already in possession of the White House – If he will not leave because of possible election tampering, then who is going to remove him? The pressure campaign to force the incumbent Trump, hated by the establishment, to concede has ratcheted up to eleven.


The EU s executive will promise legal protection against discrimination at work and hate crime and help cross-border recognition of rainbow families. The countries, which seek to join the EU, must eventually comply with the bloc s climate commitments. The government has previously expressed concern that many firms have their heads in the sand and are ill-prepared for Brexit. Will the EU successfully leverage its soft power to do some good?