Open: New York Session | Forex, Metals, Oil, Agriculture April 19, 2021

A member of the National Guard plays a trumpet during a flag rai


For instance, Brazil supplies both soyabean and cotton to China, in partial replacement of US goods.India, too, is facing a trade deficit (about $60 billion) with China.


Smaller gains were recorded by the Australian dollar (+1.51%), the British pound (+0.95%), the Japanese yen (+0.81%), the euro (+0.71%), the Swiss franc (+0.51%), and the Canadian dollar (+0.14%). Through the Great Financial Crisis, the Trump years of seeking a weaker dollar, and the shock of the pandemic, the dollar’s role remains quite stable. The steepest increase against the US dollar were seen in the New Zealand dollar (+1.59%). Looking ahead, the US dollar price action and broad market sentiment will lead the way for gold traders, especially, in absence of relevant economic news from the US.
The dollar fell, after Federal Reserve reiterated that spike in inflation is likely to be temporary, while gold edged higher. The U.S. dollar fell, after Federal Reserve reiterated that spike in inflation is likely to be temporary, while gold edged higher. Rising concerns over President Biden’s infrastructure plans and a tick up in US covid cases is lifting the US Dollar which could cap gains in the precious metal.
The dollar advanced thanks to the roaring back of America’s economy, reflected in figures such as a 9.8% leap in retail sales last month. Successful vaccine rollouts suggest a faster global economic recovery, weighing down on the safe-haven dollar. On the back of a weaker dollar, softer rates, and increased volatility in the crypto space, gold is firmer.


The precious metal also draws support from the reports that China has granted permission to its domestic and international banks to import large amounts of gold into the country. Pixabay Gold recorded its second straight weekly gain last week, hitting a two month high of $1784. Recent bond market action should not worry the ECB much The pace of ECB purchases has not risen that much Gold forms double bottom, points to $1800. less Gold (XAU/USD) is extending its three-day upbeat momentum into Monday, as the bulls clinch fresh two-month highs near $1790, fast approaching the $1800 mark.
Gold prices for the latest contract on MCX are trading up by 0.9% at Rs 47,793 per 10 grams. When picks and shovels are being touted as your best bet rather than the gold mine itself the rush is past. Gold is trading marginally higher as the new week kicks off. Additionally, a favorable technical setup also backs the renewed uptick in gold. S&P 500 futures pointed to a drop at the open, the 10-year Treasury yield was at 1.561% and gold gained.


Saudi seaborne crude exports for last week were seen at 36.6 million bbl (5.2 million bpd) compared to 47.0 million bbl (6.7 million bpd) the week prior. US oil was down 27 cents, or 0.2 per cent, at $62.96 a barrel, having gained 6.4 per cent last week. Brent crude futures, the global oil benchmark, fell 0.37 per cent to $66.52 per barrel. Road fuels should continue to pick up in the US as EIA data showed in the latest week of data that gasoline demand is almost at 9 million bpd.
Pent-up demand for goods and services and the distribution of stimulus checks may continue to underpin crude oil prices. WTI rallied 6.26% last week as strong economic data from the US and China painted a brighter outlook for energy demand. There are also worries about the demand outlook, with the worsening Covid situation in India, a key crude importer, keeping a lid on prices today. Uneven vaccine rollouts around the world, ongoing Iran nuclear talks and climbing coronavirus cases in India render oil prices susceptible to profit-taking.
Oil prices were lower, weighed by demand concerns. Traders are waiting for fresh catalysts to support oil’s rally after prices registered their largest weekly gain since early March.

United States

In US stock markets, Wall Street indices jumped on Friday as technology companies helped lift stocks to a record high. The US pharmaceutical is on course to deliver 55 million doses through June– covering the same amount of people – if it gets the green light. Easing concern over the EU’s vaccine rollout are helping to underpin the pair, in addition to a dovish Fed and on going weakness in US Treasury yields. Wall Street futures eased after the S&P 500 and the Dow closed at record highs in the previous session, while investors geared up for quarterly earnings reports.
However, the US route should remain viable with arbitrage spreads backwardated and prompt at above 21cents/gallon along with TC2 freight rates remaining subdued.
Image Source: Unsplash And so it was last week again as we got a CPI reading of 2.6% yoy (above the Fed’s target! The last word on the US-China trade war has not been said yet.Commodity producers around the world are closely tracking developments in China. Coinbase (COIN) has completed its IPO in the US as the cryptoasset market continues to enter mainstream financial markets.
However, demand from the US consumer has ripple effects and may also boost the European economies. The US faces a record trade deficit with China as it is a large importer of a range of Chinese goods.


Views are personal) Despite the ECB’s pledges, the pace of bond purchases has seen less than a significant increase, questioning the ECB’s resolve to preserving easy financing conditions. In this week’s press conference, Lagarde will no doubt face questions about whether the recent pace of bond purchases constitutes a significant increase. In addition, the ECB seems keen to review the pace of the bond purchases at quarterly intervals ,i.e. This brings the total number of doses to be delivered to the 27 EU members to 600 million in 2021, the companies said in a statement.
Financial markets would also welcome clarification on what the ECB means by wanting to preserve favourable financing conditions. FX participants should also keep in mind that the ECB is scheduled to hold a regular monetary policy meeting on Thursday. Pfizer Inc: The European Union has exercised an option to acquire an additional 100 million doses of BioNTech and Pfizer’s COVID-19 vaccine, the two companies said.
EU Orders 100 Million Additional Pfizer Doses Bloc needs more shots to offset challenges from Astra, J&J vaccines. Armin Laschet and Markus Söder have been clashing on who replace Chancellor Angela Merkel as chancellor candidate.