Open: New York Session | Forex, Metals, Oil, Agriculture August 26, 2020



Downtrend scenario A downtrend will start as soon, as the cotton market drops below support level 57.1, which will be followed by moving down to support level 50. Uptrend scenario The uptrend may be expected to continue, while the cotton market is trading above support level 64.15, which will be followed by reaching resistance level 67. MARKET NEWS Chicago corn futures gained more ground with prices trading near their highest in six weeks, as expectations of strong Chinese demand underpinned the market.
The corn sale was the largest since a July 30 announcement of nearly 2 million tonnes in sales to China. China is stepping up American soybean buying, taking advantage of lower prices. On Monday, the Department of Agriculture slashed U.S. corn conditions to 64% good-to-excellent, more than analysts expected and a 5-point fall on the week. Pulitzer Prize-winning essayist and 1619 Project contributor Nikole Hannah-Jones condemned Mr Cotton’s comments on Sunday.


The quotation for Gold Quanto futures, quoted in US dollar, will be Indian gold price quoted per 10 grams and for Silver Quanto, Indian silver price quoted per kg. FOREX: The dollar and the euro traded cautiously as investors refrained from taking risky bets a day ahead of a key speech by Federal Reserve Chairman Jerome Powell. Global investors are simply taking time out from long dollar exposures, and euro bulls are simply filling a temporary void. The dollar is mixed with the Antipodean currencies and yen performing better than the euro and Swiss franc, which are nursing small losses.
Based on income and debt statistics, this downgrade is long overdue, but when it happens, it will likely bring the U.S. dollar and dollar-denominated bonds significantly lower. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. This gives the fund diversified exposure to make different currencies, all of which offer higher yields than the U.S. dollar.
This is a major secondary reason why the U.S. dollar has been depreciating against many emerging market currencies and while it will likely continue to do so. (GLD, SPTL) The Australian ASX 200 index fell 0.4% alongside S&P 500 futures (SPX) whilst the US Dollar Index (DXY) rose. Due to abysmally low yields and a growing oversupply of dollars, the U.S. dollar exchange rate has begun to decline.


When compared to other gold producers, like Eldorado Gold (EGO), Pretium Resources (PVG), New Gold (NGD), or Karora Resources (OTCQX:KRRGD), both values are extremely low. It’s not too late to add to your gold allocation before new restrictions on gold buying or gold ownership are imposed. When gold was $1,800.50 in June, and the price index was 257.2, the real gold price was 7. Rather than price gold in terms of fiat or paper money, he says, we should view paper money as being priced in terms of gold.
Conversely, when Treasury real yields fall, gold prices would tend to climb.This process leads to the finding that gold is cheap. They need to see gold at its current high price for an extended period before committing more funds to find more gold. (Source: Author’s own processing, using data from Gran Colombia Gold) In Q2, the average realized gold price increased by 8%. It produced 44,377 toz gold in Q2, compared to 50,346 toz gold in Q1. Of course, gold is volatile (well, the paper gold market is volatile) and has its down days alongside the up days.
Gran Colombia sold 63,701 toz gold in Q1 but only 45,078 toz gold in Q2.


An industry body forecasted crude oil inventories to have fallen by 4.5 million bbl compared to the 3.7 million bbl estimate in the Reuters poll. Oil is meanwhile holding at a five-month high of $43 per barrel amid a threat that some of America’s largest oil refineries could be shut for months. Malaysian palm oil futures rose, partially recovering from a four-week closing low hit in the previous session on higher soyoils and crude, although weaker August exports capped gains.
Looking ahead, US durable goods orders for July headline the economic docket ahead of EIA crude oil inventories for the week ending August 21.
The West Texas Intermediate Crude Oil market has rallied during the course of the trading session on Tuesday, as the 200 day EMA underneath continues to offer support. Still, the broader narrative of downward pressure on prices remained the same and oil remained steadfastly stuck in its current trading range. BEFORE THE BELL Canada’s main stock index’s futures inched lower, dragged by falling oil prices on the back of renewed fears over the COVID-19 pandemic.
Crude Value Insights offers you an investing service and community focused on oil and natural gas. To access the Middle East Weekly Fuel Oil report, click here (link to be pasted on Eikon search) You can access the full report here. US crude oil exports to China will hit a record in September.

United States

Since small firms are the lifeblood of the US economy, with many now closing for a second time, Tyler Durden (pseudonym) is the lead writer at ZeroHedge. Stephanie Grisham, Ms Trump’s chief of staff, told the network on Wednesday morning that audience members sitting near the president or vice president were tested before the speech. Yet the convention featured Americans and political leaders heaping praise on Mr Trump’s economic stewardship, describing the economy in glowing terms that no longer apply to many Americans.
This time around, the Fed is only buying up a modest portion of this years $3.7 trillion budget deficit, much less than half. Larry Kudlow, a top Trump economic adviser, described the pandemic in the past tense, not as a virus that continues to upend nearly every aspect of American life. “I want to acknowledge the fact that since March our lives have changed drastically,” Mrs Trump said in a convention address from the White House Rose Garden.
Polling also underscores the reality of Mr Trump’s abysmal support among black voters, despite the diverse lineup on the convention stage. Gary Cohn, the former economic adviser to President Trump, is the latest high-profile name to join the frenzy of Wall Street dealmaking related to special purpose acquisition companies (SPACs). At Mr Trump’s convention, the coronavirus pandemic has largely subsided, not continued to infect thousands of Americans a day. If you look strictly at monetary policy as usually defined (interest rates and the money supply) the Fed has not done all that much.


What Else Is Happening China is looking to turn on the charm in Europe to push back against a U.S. campaign for allies to shun cooperation with Beijing. China is looking to charm Europe to push back against a U.S. campaign for allies to shun cooperation with Beijing. Beijing is set to snap up a record 40 million tons this year as rival Brazilian supply dries up, people familiar said. Xi Jinping is aware that China is the world’s largest source of trash.


The European pharmaceuticals vaccine lobby is pushing the EU for certain liability protections as drugmakers around the world rush to develop a coronavirus vaccine. The ECB has abandoned Germany’s monetary rigour, spending its way out of recession through debt monetisation and underwriting Europe’s explosive fiscal expansion in the process. The ECB’s defence is that it has no alternative, otherwise Europe might suffer an even worse fate. ECB coffers are not a bottomless pit and Germany’s patience might not be guaranteed forever.
The U.K. left the European Union in January, but will only feel the economic impact when a transitional trade agreement expires on Dec. 31. Germany has given up the ghost on trying to control the ECB’s monetary excesses. The ZEW says Christine Lagarde has performed exceedingly well at her primary task. OK, so not all of Germany’s bellwether business sector is gaga over Christine Lagarde.