Agriculture
The comments followed concerns that recent typhoons could reduce the output corn, which is already in tight supply.
Currencies
PLTM is under sharp selling pressure, reflecting a broad-based sell-off across the precious metals space in a stronger dollar environment. Kathy Lien Follow The U.S. dollar traded higher against all of the major currencies on Tuesday on the back of relatively neutral comments from Federal Reserve Chairman Jerome Powell. The U.S. dollar traded higher against all of the major currencies on Tuesday on the back of relatively neutral comments from Federal Reserve Chairman Jerome Powell.
The fund has come under heavy pressure of late, reflecting a broad-based consolidation in the precious metals space in a stronger dollar environment. Thanks to a chorus of weaker dollar calls in recent months, betting against the greenback has become one of the market’s most crowded trades. Source: investing.com I anticipate that this trend could continue and we could see a rebound in the U.S. dollar after months of decline. The rally in the dollar drove sterling, the Australian and Canadian dollars to one-month lows and the euro to a two-month low.
If the dollar advances, it can negatively impact the rupee.Trade strategy The rupee, which breached the support of 73.5 yesterday, has turned the outlook bearish. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. In my recent articles, I’ve been telling you to watch for a relief rally in the dollar over the near term.
The fund has come under heavy pressure of late, reflecting a broad-based consolidation in the precious metals space in a stronger dollar environment. Thanks to a chorus of weaker dollar calls in recent months, betting against the greenback has become one of the market’s most crowded trades. Source: investing.com I anticipate that this trend could continue and we could see a rebound in the U.S. dollar after months of decline. The rally in the dollar drove sterling, the Australian and Canadian dollars to one-month lows and the euro to a two-month low.
If the dollar advances, it can negatively impact the rupee.Trade strategy The rupee, which breached the support of 73.5 yesterday, has turned the outlook bearish. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. In my recent articles, I’ve been telling you to watch for a relief rally in the dollar over the near term.
Metals
Massive unemployment, businesses closed or failed, and people leaving some of the big cities all point to a serious economic crisis and are bullish for gold. I also said that could weigh on gold, generating some temporary weakness which would create an excellent opportunity to buy. When gold hit $2089, the fundamentals were still bullish, yet the market then corrected some from that level. The low made in gold in March basically said that the damage from the pandemic had been taken into account.
Well, it looks like we’re entering that period now, suggesting it will soon be time to put cash to work in the gold space. Gold started the run-up from about $1450, providing a solid $600 move since March. Gold is moving up toward $1968 with a bullish momentum. Gold came down to the average price of $1979. Gold is being dented, having recently traded back below $1,900. Gold then activated the Sell 1 level of $1968.
Well, it looks like we’re entering that period now, suggesting it will soon be time to put cash to work in the gold space. Gold started the run-up from about $1450, providing a solid $600 move since March. Gold is moving up toward $1968 with a bullish momentum. Gold came down to the average price of $1979. Gold is being dented, having recently traded back below $1,900. Gold then activated the Sell 1 level of $1968.
Oil
At current strip of around $42 WTI oil and $2.90 Henry Hub natural gas, Gulfport would end up with around $866 million in revenues after hedges. It has also implemented cost saving measures, so its natural gas differential may be around negative $0.70. Gas Gang | Greece, Italy, Egypt, Israel and two other countries will form a permanent organization to promote cooperation over natural gas in the Eastern Mediterranean. Malaysian palm oil futures fell for a third straight session, tracking weaker Dalian rival oils while rising output and concerns over fresh COVID-19 lockdowns in Europe also pressured prices.
Gulfport probably needs sustained $3+ NYMEX natural gas to reduce its long-term restructuring risk. The challenge for Gulfport is that even with its improved cost structure, its breakeven point appears to be near $2.60 NYMEX natural gas. The current natural gas strip for 2022 and 2023 is averaging close to $2.60. He said he prefers to trade the commodity rather than energy stocks and he is only trading oil from the long side.
Greer also shared his long-term view of the energy sector during the interview and explained why he remains bullish on oil. The reason for that is because Cracker Barrel’s first half of the fiscal year 2020 was before the lockdown.
Gulfport probably needs sustained $3+ NYMEX natural gas to reduce its long-term restructuring risk. The challenge for Gulfport is that even with its improved cost structure, its breakeven point appears to be near $2.60 NYMEX natural gas. The current natural gas strip for 2022 and 2023 is averaging close to $2.60. He said he prefers to trade the commodity rather than energy stocks and he is only trading oil from the long side.
Greer also shared his long-term view of the energy sector during the interview and explained why he remains bullish on oil. The reason for that is because Cracker Barrel’s first half of the fiscal year 2020 was before the lockdown.
United States
Each week, well over a million readers turn to John Mauldin to better understand Wall Street, global markets, and the drivers of the world economy. In last week’s meeting, the Fed announced a push to the bottom on the low interest rate pedal, intending to keep it there until 2023. In the case of technology companies, enthusiasm fed itself: dealers buying stocks in advance, in the expectation that prices would continue to rise, eventually reinforcing and corroborating their rise.
The Fed is talking about an inflation target, since it knows that the way to avoid every asset deflating is to allow some inflation.
The Fed helped establish the confidence that it would provide a buyer of last resort for assets, which kept the market from entering a free fall. It is hard to see any decisive steps that the Fed can take to avoid either deflation now or inflation in the near future. The U.S. currency is higher after Chicago Fed President Charles Evans suggested the Federal Reserve’s plan allows a hike before inflation averages 2%. The role of superhero hitherto fulfilled by the Fed’s monetary policy seems to have driven it to exhaustion.
The Fed’s preferred inflation gauge, the PCE numbers, exclude medical bills and other costs. Investors are obviously seeing the same kind of future for the US economy that is being projected by the people at the Congressional Budget Office.
The Fed is talking about an inflation target, since it knows that the way to avoid every asset deflating is to allow some inflation.
The Fed helped establish the confidence that it would provide a buyer of last resort for assets, which kept the market from entering a free fall. It is hard to see any decisive steps that the Fed can take to avoid either deflation now or inflation in the near future. The U.S. currency is higher after Chicago Fed President Charles Evans suggested the Federal Reserve’s plan allows a hike before inflation averages 2%. The role of superhero hitherto fulfilled by the Fed’s monetary policy seems to have driven it to exhaustion.
The Fed’s preferred inflation gauge, the PCE numbers, exclude medical bills and other costs. Investors are obviously seeing the same kind of future for the US economy that is being projected by the people at the Congressional Budget Office.
China
The pledge is credible because it s in Beijing s interests; Xi may also be trying to warm frigid European negotiators, and defang sceptics. President Xi Jinping rebutted the claims without mentioning his counterpart by name, saying the fight against the virus should not be politicized.
Europe
London Return | With tension over Brexit talks showing no sign of disappearing, chief negotiator Michel Barnier is back in London today to hold talks with his British counterparts. But if that hoard bolstered by EU rescue funds and central bank-backed cheap borrowing is spent unwisely, it could become the biggest missed opportunity of a generation. Virus woes hit sterling hard today after Prime Minister Boris Johnson announced new restrictions that could last up to six months.
The weaker-than-expected decline in EU sales in August could indicate that the recovery in prior months was mainly driven by subsidies and pent-up demand. While the figures suggest that people weren t necessarily holding on to cash for precautionary reasons, the ECB warned that could change. The EU already struck one landmark deal this year, propping up the region s economies in the face of an unprecedented recession. The comments carry significant weight in the ECB s efforts to sustain the economic recovery from the coronavirus crisis.
Today, the issue constrains the EU s room for maneuver in foreign policy and gives unwelcome ammunition to Turkey s president. Macron Shocker | French President Emmanuel Macron gave a grim description of international cooperation in a speech yesterday, including veiled attacks on the U.S. and China. The latest statistics from the ACEA show that EU sales contracted by 18.9% YoY in August, a deeper contraction than the 5.7% YoY decline in July.
0 The weaker-than-expected decline in EU sales in August could indicate that the recovery in prior months was mainly driven by subsidies and pent-up demand. While the figures suggest that people weren t necessarily holding on to cash for precautionary reasons, the ECB warned that could change. The EU already struck one landmark deal this year, propping up the region s economies in the face of an unprecedented recession. The comments carry significant weight in the ECB s efforts to sustain the economic recovery from the coronavirus crisis.
Today, the issue constrains the EU s room for maneuver in foreign policy and gives unwelcome ammunition to Turkey s president. Macron Shocker | French President Emmanuel Macron gave a grim description of international cooperation in a speech yesterday, including veiled attacks on the U.S. and China. The latest statistics from the ACEA show that EU sales contracted by 18.9% YoY in August, a deeper contraction than the 5.7% YoY decline in July.
