Open: London Session | Forex, Metals, Oil, Agriculture October 15, 2020



MARKET NEWS Chicago soybean futures rose for a third consecutive session as strong demand from China and dry weather in Brazil underpinned the market. The statement comes after Argentine authorities approved a new genetically modified wheat that can resist drought and tolerates the herbicide glufosinate sodium. Coffee may revisit its September high while cocoa its July low.


The euro is another, yet the euro represents only about 20% of central bank reserves, whereas the U.S. dollar remains the preference (representing about 60% of FX reserves). Dollar indexThe dollar index was sluggish yesterday and ended the day on a flat note. The USD/CHF currency pair, which expresses the value of the U.S. dollar in terms of the Swiss franc, was already falling as we headed into 2020. The U.S. dollar is branded as the world reserve’s currency, the operative word here being “the”.
With the Swiss franc serving as a favored alternative to the euro, any tepidity across Europe can punish the Swiss economy through aggressive flows into CHF. Strengthening this bias further has been euro skepticism, which really picked up after the global financial crisis from 2008.


Gold may drop more, driven by a wave four Base metals may keep their bullish momentum awhile, but with limited upside. Infosys, Tata Motors and Tata Steel were the top gainers.


Yet the company has not cut the dividend and, in Q2, had a coverage ratio of 1.09x despite the severe domestic oil and gasoline demand destruction due to COVID-19. Malaysian palm oil futures were little changed as signs of subdued supply due to wet weather and a labour shortage countered demand worries driven by lower Oct. 1-15 exports. Crude Value Insights offers you an investing service and community focused on oil and natural gas. That consists of a crude oil pipeline, terminal and storage system located in Sulphur, Louisiana.
That means DAPL equates to an estimated 18% of PSXP’s total crude oil pipeline volumes. In Q2, PSXP had an average of 806,000 bpd of throughput in crude oil pipeline transport. REUTERS TECHNICAL ANALYSIS Q4 OUTLOOK 2020 – WANG TAO Oil may have completed a strong bounce from its April low and is expected to fall deeply. It is the primary source for crude oil delivery to Phillips 66’s Lake Charles Refinery. Gray Oak transports crude oil from the Permian and Eagle Ford to the Texas Gulf Coast.
Similar outlook is on palm oil which could have peaked in September.

United States

This will prove to be naive if the current inhibitory regulatory environment changes on the back of a flip in power following the US presidential elections. “We’ve spent $2.5 trillion over the term in office, my term,” Trump recently said. The billionaire didn’t mention the words “election,” “Donald Trump,” or any Democrat running for president in his annual letter to investors in February. Well, President Trump, of course – plowing more than $2.5 trillion of taxpayers funds into the military on one of the biggest spending sprees in history.
First the investigation into Russian influence over President Donald Trump’s campaign fizzled out. Last week, the Trump administration appealed Nichols’ ruling blocking the download ban to the U.S. Court of Appeals in Washington. Trump and his allies have hailed them on the campaign trail as a breakthrough in peace talks, though details are thin. Mnuchin, who has visited the region at this time of year annually since 2017, is set to meet with counterparts.
States have largely been left to set policy on their own, and the Trump administration is not modeling good behavior. Not that the Fed would have raised rates if core CPI was above 2%, but it certainly won’t with core CPI below that threshold.


LEARN MORE 1:16 Share Tweet Post Email 1:45 Share Tweet Post Email Xi Jinping and Justin Trudeau at the 2019 Group of 20 summit in Osaka, Japan.


An adviser to the top EU court will today issue non-binding opinions that will give an indication about whether the commission has a chance of winning its appeals. Germany and Italy both reported a record number of new cases.No ProgressIt’s a familiar story as much hype around a Brexit deadline comes to nothing. EU leaders will say today that not enough progress has been made for a post-Brexit agreement. European countries are tightening Covid-19 restrictions, Brexit trade talks look set to continue and hopes of a pre-election U.S. stimulus package have faded.
EU leaders are starting a two-day summit in Brussels today.
“This virus is dangerous and serious for everyone,” Macron said during a televised interview on Wednesday. EU member-state envoys in Brussels cleared the way yesterday for bloc-wide asset freezes and travel bans on individuals. That s the way the EU does things one small step at a time. We also publish the Brexit Bulletin, a daily briefing on the latest on the U.K. s departure from the EU. For decades, they were boxed up in a museum basement and finally, this July, President Emmanuel Macron sent them home.