Open: New York Session | Forex, Metals, Oil, Agriculture August 11, 2020



Downtrend The downtrend may be expected to continue, while corn is trading below resistance level 313.5, which will be followed by reaching support level 302. Downtrend The downtrend may be expected to continue, while corn is trading below resistance level 321, which will be followed by reaching support level 262. Downtrend The downtrend may be expected to continue, while wheat is trading below resistance level 502, which will be followed by reaching support level 466.
Uptrend The uptrend may be expected to continue, while wheat is trading above support level 466, which will be followed by reaching resistance level 541 and 573 – 591. Crop Watch corn and soybeans experienced another week with mostly spotty precipitation, though the cooler temperatures prevented a decline in yield expectations for all locations except Ohio. However, soybean ratings improved to 74% good to excellent, up 1 point from the previous week, bucking trade expectations for a 1-point decline.
Raw sugar futures on ICE closed slightly lower on Monday, with the market consolidating just below last week’s five-month peak, underpinned by demand from Pakistan and China. Cocoa, coffee and other soft commodities trading on the Intercontinental Exchange have bounced back from their lows earlier this year and now number among the world’s best-performing major assets.


Dollar index The dollar index gained marginally yesterday; however, it stays below the resistance at 94 and this level should be breached to turn the outlook positive. The dollar trades a tad softer while the risk-on sentiment and higher real yields have pushed gold back below the psychological important $2000 level. Now, however, gold is making daily headlines, and thanks to falling interest rates and the declining U.S. dollar, the case for holding gold seems to only be getting stronger.
Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. The dollar’s stunning decline last month looks less consequential if you take into consideration the inflation-adjusted value, strategist Marshall Gittler said. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.06 per cent to 93.52. The rupee appreciated 8 paise to 74.82 against the US dollar in early trade on Tuesday tracking weakness in the greenback and gains in the domestic equity market.
The tables have turned – King dollar is back with a vengeance after a long period of decline. Morgan Stanley analysts noted on Friday that the U.S. dollar (DXY, 0.24%) index was the most oversold since 1978 and trading 3.6 standard deviations below its twelvemonth average. A stock’s price-to-sales ratio reflects how much investors are paying for each dollar of revenues generated by a company.


The appreciation in gold prices has been substantial since the start of the summer, raising some questions regarding the sustainability of the gold price rally. In case the gold price rallies above $2,100 per ounce, the resulting buying tide will lift all gold mining boats. The substantial increase in investment demand for gold (via ETFs) has been very bullish for the COMEX gold spot price and thus SGOL. As many unfortunate gold investors learned in February and March of this year, gold is not a crisis hedge and will not protect against losses when all markets crash.
In 2020, it is more important than ever to have a different approach towards gold since the gold markets behave in a fundamentally differently than the stock market. Spargos contains inferred and indicated resources of 131,000 toz gold, at gold grades over 4 g/t, which is very high grade for an open pit. We think that demand for gold is driven by the massive decline in US real rates, reducing the opportunity cost for owning gold.
We discuss gold prices through the lenses of Aberdeen Standard Physical Gold Shares (SGOL).
The World Gold Council (WGC) published on July 30 its latest estimates for gold demand/supply for Q2. If you want to know, when and how to buy gold, just visit our Youtube Playlist on gold investing.


But it shows the oil sands producer is taking advantage of the current challenges in the oil and gas environment. Oil continues to be range bound ahead of monthly oil market reports. Yet the transaction favors the oil sands producer as it will get vast gas reserves at a cheap price. Brent crude futures, the global oil benchmark, rose 0.47 per cent to $45.20 per barrel. As mentioned in the presentation, oil and gas made up 1.2% of total loans at the end of the last quarter.
BEFORE THE BELL Canada’s main stock index futures rose, helped by gains in oil prices and hopes of a U.S. stimulus to revive the economy. Consider how oil companies first resisted disclosing and then taking responsibility for emissions produced when customers burned their products, known as Scope 3 emissions. Brent crude is also starting the week a bit firmer on Saudi Arabia’s oil outlook. COLUMN-Saudi Aramco sees Asian crude oil demand recovering. COLUMN Saudi Aramco sees Asian crude oil demand recovering.

United States

The move, known as indexing capital gains to inflation, would likely face legal challenges, and comes as Trump also explores “an income tax cut for middle-income families.” Another look After deciding against the measure almost a year ago, President Donald Trump said yesterday that he is “very seriously” considering a capital gains tax cut. In the meantime, Trump seems enamored with the power of the pen, and he is touting a capital gains tax cut – reversing his position.
As for Trump’s weekend executive orders, Ohio said it has no plans to spend the 25% the president wants as a state match for extended unemployment aid. Still, some dark clouds remain on the horizon, with two demand centres, the US and India, still reporting exceptionally high numbers of new coronavirus cases. We would turn a little bit more conservative in September, due to 1) the negative price seasonality and 2) the Fed’s meeting (which could create some volatility).
Even without a cut, Trump said things are going well if you look at your 401(k) balance. A spokesman for Mr Vance said the office would reply in writing to Monday’s filing by Mr Trump. Trump considers a capital gains tax cut. Mr Trump’s legal team has made much of the fact that the subpoena to Mazars was identical to congressional subpoenas previously issued.


The question is whether global users would accept a system run by Beijing, no matter how accurate. Meanwhile, Beijing wants to ease tensions ahead of the U.S. presidential election, even as it returns White House fire. But will global users accept a system run by Beijing, no matter how accurate it is? However, worsening strains between Washington and Beijing over Hong Kong could limit the appreciation bias in currencies,” Reliance Securities said in a research note.
Asian stock markets ended on a mixed note today as relations between Washington and Beijing worsened. Duterte last month also asked Chinese President Xi Jinping for priority access to a vaccine.


Without a trade deal with the European Union finalized by the end of the year, the U.K. could see itself falling back on standard World Trade Organization trade terms. Economic outperformance does not seem likely.Significant risks lie ahead if the U.K. and EU do not finalize a trade deal by year-end. The EU, with France’s Macron lately leading the way, has consistently sided with Greece and Turkey, condemning Turkey’s maritime violations of EU member states’ Exclusive Economic Zones.
Add to that concern the new frictions caused by Brexit and it is difficult to see how UK prospects going forward will improve.
But the U.S. and the EU condemned the conduct of the elections and the crackdown on protesters. For the reader’s information, the Eurozone (stocks in EU accounts for about 40% of VEU’s portfolio) saw its GDP declined by 11.9% in Q2 2020. The U.S., EU blast Belarus crackdown as opposition rejects vote. Remdesivir has received regulatory approvals in the European Union and Japan, according to Gilead.