Open: London Session | Forex, Metals, Oil, Agriculture November 23, 2020

Currencies

Money was not measured by the dollar anymore; now, each currency was measured in relation to every other currency, with prices that constantly changed, creating foreign exchange market volatility. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. Dollar weakness continues amid vaccine optimism and the U.S. reportedly plans to ban exports to some Chinese tech firms.
This would establish the Special Drawing Right, or SDR, as the new reserve currency as opposed to the U.S. dollar. At first, the dollar proved to be stable enough to support the Bretton Woods agreement in 1944 — until it wasn’t in the decades ahead. Singapore dollar up after GDP data Most Asian currencies have inched higher on Monday. The following table shows rates for Asian currencies against the dollar at 0207 GMT. The inflation of the U.S. Dollar has been low for more than a decade.
Here are the details on what delegates decided over a virtual party convention this weekend, including a 500 billion-euro green spending plan.

Metals

crude rose 0.07% to $42.45 a barrel and global benchmark Brent crude rose 0.33% to $45.11 per barrel.Spot gold rose 0.11% to $1,872.63 per ounce. The removal of the gold standard turned each country’s fiat currency into a floating exchange rate that was no longer fixed. Each sovereign currency’s value was determined relative to a fixed amount of gold. Non-yielding gold is often seen as a hedge against inflation that is likely to result from stimulus measures.
This was during what was known as the gold standard. Hedging into silver, platinum, and gold. Silver firmed 0.4% to $24.25 an ounce.

Oil

LIBOR arose during the OPEC crisis of the 1970s, a period when interest rates were simply too volatile to safely finance a major project at a long-term fixed rate.

United States

While the Fed supplies a temporary LIBOR, the market trades a futures contract, then settles these contracts through the delivery of the Fed-defined instrument at the Fed-provided index rate. Shouldn’t the financial markets do whatever they can to help the Fed make SOFR – or something else – a lasting and viable index? No matter how reluctant the Fed might be to set LIBOR, even temporarily, they are apparently bowing to market participants’ needs. Although initially higher, Sweden now has a lower death rate per-capita than the US, which it achieved without the terrific economic damage still ongoing in the US.
The Fed undoubtedly saw that IOSCO’s index restrictions required the Fed to construct a new index. Market response to the Fed’s offer should include two areas of Fed-market cooperation. social distancing and business closures, in order to prevent, for example, over 2.2 million people dying from COVID in the US. But two subsequent virus-related releases (Moderna’s (NASDAQ:MRNA) vaccine news and Pfizer’s application for emergency authorization) had little upside impact.
There was nothing in the fixed income markets that remotely met the IOSCO restrictions before the Fed created SOFR. Moreover, the Fed will be accused of crossing into the domain of market forces.

China

SoyaCincau states the food trucks are manufactured by Neolix, a self-driving logistics startup based in Beijing.

Europe

Britain needs to accept EU conditions, particularly over the level playing field for business, and the prime minister has yet to give the final nod. EU leaders will discuss the future of the bloc s relations with Ankara at their summit in December. Boris Johnson still holds the key.

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