Currencies
The dollar’s weakness, where the Dollar Index is falling for the seventh consecutive session, maybe helping to unpin commodity prices. The Indian rupee started this Tuesday on a stronger note against the US dollar, tracking the overall weakness of the dollar, Reliance Securities said in a research note. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.14 per cent to 90.94. It all came to a screeching halt that particular month when the entire global dollar system froze.
Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. The above table shows correlation and sensitivity (beta) for a plethora of currencies vis-à-vis the dollar, sorted on beta (weekly % changes, data since 2018). Since the fundamental reasons for the decline in the dollar index are unfathomable, there is no way to predict how active buyers will be today.
less Even as US yields edge higher, the dollar struggles. The central bank sees its policies as having kept the Australian dollar weaker than it otherwise would have been. That is what the , but relentless dollar weakness may result in further gains for cable.
Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. The above table shows correlation and sensitivity (beta) for a plethora of currencies vis-à-vis the dollar, sorted on beta (weekly % changes, data since 2018). Since the fundamental reasons for the decline in the dollar index are unfathomable, there is no way to predict how active buyers will be today.
less Even as US yields edge higher, the dollar struggles. The central bank sees its policies as having kept the Australian dollar weaker than it otherwise would have been. That is what the , but relentless dollar weakness may result in further gains for cable.
Metals
Gold prices for the latest contract on MCX are trading down by 0.2% today at Rs 47,283 per 10 grams. Gold prices are trading down by 0.2% at Rs 47,261 per 10 grams. Gold prices are trading down 0.4% at Rs 47,194 per 10 grams. Even with the recent volatility in prices, gold remains among the best-performing commodities this year to combat the fallout from the coronavirus pandemic. Gold prices in India slipped today amid softer global rates. In the previous session, gold had hit a two-month high when it rose to Rs 47,850 per 10 grams.
On MCX, gold futures were marginally lower at Rs 47,380 per 10 grams. Although gold is extended yesterday’s reversals, base metals and oil are higher, and the CRB Index is at its highest level in over a month. in Computer Science from Ben Gurion University less Contrary to gold bugs’ optimism, precious metals have been sluggish amid the pandemic. Traditional portfolio hedges failed, and even gold declined as investors couldn’t get their hands on as many dollars as they wanted.
On MCX, gold futures were marginally lower at Rs 47,380 per 10 grams. Although gold is extended yesterday’s reversals, base metals and oil are higher, and the CRB Index is at its highest level in over a month. in Computer Science from Ben Gurion University less Contrary to gold bugs’ optimism, precious metals have been sluggish amid the pandemic. Traditional portfolio hedges failed, and even gold declined as investors couldn’t get their hands on as many dollars as they wanted.
Oil
It could reduce oil exports from Libya by 280,000 barrels per day – down to 1 million barrels per day, which triggered the rise of oil prices. As a result, gasoline stocks could rise by 650,000 bbl, while distillates are likely to have fallen by 898,000 bbl. Crude oil is being pushed around by the idea of the reopening trade and the idea that economies around the world are going to be opening up rather quickly. A Reuters poll predicted a relatively bullish outlook for US stocks with commercial crude inventories likely to fall by 2.86 bbl for the week ending the 19th March.
Libyan oil company National Oil Corp has announced force majeure for shipments from Hariga port. No fuel oil exports were observed from Saudi Arabia for a second week in a row. Oil prices jumped, supported by a disruption to Libyan exports and expectations of a drop in U.S. inventories. Iraqi fuel oil exports rebounded of three-month lows, rising 79,000 MT to 236,000 MT. Overall fuel oil loading activity was weak, with just one seaborne domestic transfer.
Fuel oil exports from the UAE fell 171,000 MT w-o-w to 225,000 MT for the period.
Libyan oil company National Oil Corp has announced force majeure for shipments from Hariga port. No fuel oil exports were observed from Saudi Arabia for a second week in a row. Oil prices jumped, supported by a disruption to Libyan exports and expectations of a drop in U.S. inventories. Iraqi fuel oil exports rebounded of three-month lows, rising 79,000 MT to 236,000 MT. Overall fuel oil loading activity was weak, with just one seaborne domestic transfer.
Fuel oil exports from the UAE fell 171,000 MT w-o-w to 225,000 MT for the period.
United States
In US stock markets, Wall Street indices closed lower on Monday as investors awaited guidance from first-quarter earnings to justify high valuations. US stock futures are trading higher today, indicating a positive opening for Wall Street indices. The stock markets (such as the Nasdaq) had already reached new all-time highs when vaccines against the virus brought much-needed hope to the world. The US economy could see a strong recovery this year as consumers have $2 trillion in savings, higher than pre-pandemic levels.
It comes as no surprise, therefore, that the Fed sees the risky assets (i.e., equity markets) as centric to its decisions, especially during economic downturns.
What’s more, the currently strong fiscal policy impulse in the US is expected to wane during the second half of the year. Technology-heavy Nasdaq-100 futures rose 0.1%, a day after faltering tech companies dragged major indexes lower. As a rule of thumb, whenever the US stock market rises, the other markets follow. BEFORE THE BELL Wall Street futures slipped, as a spike in Treasury yields reignited inflation worries, while investors await earnings report from Netflix.
Table 2: Currency pair sensitivity vs Nasdaq If this becomes the case, one might want to consider ones currency exposure.
It comes as no surprise, therefore, that the Fed sees the risky assets (i.e., equity markets) as centric to its decisions, especially during economic downturns.
What’s more, the currently strong fiscal policy impulse in the US is expected to wane during the second half of the year. Technology-heavy Nasdaq-100 futures rose 0.1%, a day after faltering tech companies dragged major indexes lower. As a rule of thumb, whenever the US stock market rises, the other markets follow. BEFORE THE BELL Wall Street futures slipped, as a spike in Treasury yields reignited inflation worries, while investors await earnings report from Netflix.
Table 2: Currency pair sensitivity vs Nasdaq If this becomes the case, one might want to consider ones currency exposure.
China
Chinese President Xi Jinping called for more global economic integration and told the U.S. and its allies to avoid bossing others around.
Europe
The rising count risks keeping exports subdued from the European Union s top pork producer, benefiting other sellers in the bloc and the Americas. The rally could be down to the lifting of lockdown restrictions in the UK (April 12), as well as a trade deal approved with the EU (April 15). In June, officials plan to propose changes to the various EU climate rules to update them for the new 55% target. British musicians are already feeling the pinch from Brexit.
Interest has been boosted by a step change in the EU’s green ambitions.
0 Interest has been boosted by a step change in the EU’s green ambitions.
