Agriculture
Farmers in Russia, one of the world’s largest wheat exporters, sowed their winter grains for next year’s crop during dry weather this autumn, mainly in southern regions. Raw sugar futures on ICE bounced off the lowest level in more than three weeks and ended unchanged on Tuesday, while cocoa and coffee prices weakened. Futures spread to crude oil and the COMEX became active, allowing the trading of sugar, coffee, and other commodities.
Currencies
The price action of the currency pair USDINR hints at further strengthening of INR and moreover, the dollar index indicates a weak dollar. The US dollar has been one of the weakest currencies in recent months with the US Dollar Index collapsing nearly 12% from its March highs. In 1971, President Nixon took the dollar off the gold standard and the fiat currency that is the US dollar has lost value against gold since then significantly. This helped the rupee advance versus the greenback.Dollar indexThe dollar index registered a loss of 0.6 per cent last session as it closed below the support of 92.
FOREX: The dollar rose from a two-and-a-half-year low as investors assessed the likelihood of further fiscal stimulus in the United States, while a rally in riskier currencies lost steam. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was up 0.07 per cent at 91.37. “Rupee scaled down by afternoon trade on Wednesday as local stocks indexes tanked mainly financial stocks and RBI bought dollar both in spot and futures.
Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. This shows that the dollar index is witnessing strong downward momentum and it is likely to move down further. less One of the major themes this year was (still is) the strength of the Euro against the U.S. dollar.
FOREX: The dollar rose from a two-and-a-half-year low as investors assessed the likelihood of further fiscal stimulus in the United States, while a rally in riskier currencies lost steam. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was up 0.07 per cent at 91.37. “Rupee scaled down by afternoon trade on Wednesday as local stocks indexes tanked mainly financial stocks and RBI bought dollar both in spot and futures.
Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. This shows that the dollar index is witnessing strong downward momentum and it is likely to move down further. less One of the major themes this year was (still is) the strength of the Euro against the U.S. dollar.
Metals
Sales of gold coins and minted bars jumped to 84,158 ounces last month, highest since April, up 119% on-month and 55% from a year earlier. The exchange executed the delivery of gold and silver of over ₹1 crore in the ‘Options in Goods’ framework at the exchange designated vault in Ahmedabad, Gujarat. Later on in 2008, he began researching areas of the gold and silver market that, curiously, the majority of the precious metal analyst community have left unexplored.
An almost equal percentage of revenues comes from a royalty on Austral Gold’s (OTCPK:AGLDF) Amancaya mine in Chile, an asset with a much shorter reserve-based mine life. In the previous session, gold prices had jumped 1.4% or Rs 700 per 10 grams. MARKET NEWS Gold eased, as doubts over the progress of a U.S. stimulus package made investors cautious, with further pressure added by reports of developments on a COVID-19 vaccine. In global markets, gold prices slipped today after jumping more than 2% in the previous session.
Amid weak global cues, gold prices in Indian markets also dropped. Gold was weighed down by optimism that the global economy can finally get back on course in 2021 with some pharma giants seeking approval for a coronavirus vaccine. Note that gold prices have been on a downward path since hitting record highs of Rs 56,200 in August.
An almost equal percentage of revenues comes from a royalty on Austral Gold’s (OTCPK:AGLDF) Amancaya mine in Chile, an asset with a much shorter reserve-based mine life. In the previous session, gold prices had jumped 1.4% or Rs 700 per 10 grams. MARKET NEWS Gold eased, as doubts over the progress of a U.S. stimulus package made investors cautious, with further pressure added by reports of developments on a COVID-19 vaccine. In global markets, gold prices slipped today after jumping more than 2% in the previous session.
Amid weak global cues, gold prices in Indian markets also dropped. Gold was weighed down by optimism that the global economy can finally get back on course in 2021 with some pharma giants seeking approval for a coronavirus vaccine. Note that gold prices have been on a downward path since hitting record highs of Rs 56,200 in August.
Oil
According to a US oil and gas agency, commercial crude stocks in the country rose by 4.15 million bbl in the week ending the 27th of November. Oil has steadying after the January WTI slipped to briefly below $44 a barrel amid ideas that the Saudis and UAE will reach an agreement (OIL). Coming up…A busy week for labor data kicks off with the ADP employment change number at 8:15 a.m. Crude oil inventory figures are released at 10:30 a.m. Consequently, gasoline inventories increased by 3.4 million bbl, compared to expectations of a 2.39 million bbl build.
If oil prices turn bullish, FANG could eventually retest its top at $47.0-$47.5, at which point I recommend selling about 30%+ of your position assuming a profit. The next EIAcrude oil inventory report will be released later today, with expectation of a 2.358-million-barrel decline. Insurers Might Be Shunning Coal, But They Still Like Fossil Fuels Big U.S. firms are doing less than their global peers to stop supporting the oil and gas industry.
Average oil composite in 3Q’20 (unhedged) was $26.75, down 26.9% from a year ago quarter and up 16.6% sequentially.
India was the key buyer of Iranian and Venezuelan oil before slashing purchases after President Donald Trump imposed unilateral sanctions on the two OPEC-members since taking office in 2017. Source: Bloomberg, DailyFX Recently, oil prices had a decent rally driven by vaccine optimism.
If oil prices turn bullish, FANG could eventually retest its top at $47.0-$47.5, at which point I recommend selling about 30%+ of your position assuming a profit. The next EIAcrude oil inventory report will be released later today, with expectation of a 2.358-million-barrel decline. Insurers Might Be Shunning Coal, But They Still Like Fossil Fuels Big U.S. firms are doing less than their global peers to stop supporting the oil and gas industry.
Average oil composite in 3Q’20 (unhedged) was $26.75, down 26.9% from a year ago quarter and up 16.6% sequentially.
India was the key buyer of Iranian and Venezuelan oil before slashing purchases after President Donald Trump imposed unilateral sanctions on the two OPEC-members since taking office in 2017. Source: Bloomberg, DailyFX Recently, oil prices had a decent rally driven by vaccine optimism.
United States
Boockvar also said that if growth picks up and the vaccine accelerates that process, we’ll see the market tighten for the Fed. All banking stocks have been taking a beating ever since monetary policy structures changed in 2018, with the Fed continuously slashing interest rates. Minutes from the Fed’s Nov. 4-5 meeting released last week offered few clues about prospects for policy changes at the central bank’s next meeting on Dec. 15-16. In its second estimate for Q3 GDP, the BEA also provides the first set of estimates for corporate profits within the US economy.
In other words, does the Fed just look through services inflation (if it comes) next year, and argue that it’s transitory due to a one-off “return to normal” shock? The Fed expects to start increasing the rates in 2023, or until the economy has shown a full recovery, whichever is earlier. 2019, in particular, was a bad year for banks as the Fed cut interest rates thrice. GDP, for example, will be down this year in the US, and unemployment levels will be well up over last year.
US Federal Reserve Chairman Jerome Powell cautioned lawmakers in the US on the uncertainty and economic damage that still remains even with the coronavirus vaccine. Paid Post There’s a reason over 2.5 million people start their day with Morning Brew the daily email that delivers the latest news from Wall Street to Silicon Valley.
In other words, does the Fed just look through services inflation (if it comes) next year, and argue that it’s transitory due to a one-off “return to normal” shock? The Fed expects to start increasing the rates in 2023, or until the economy has shown a full recovery, whichever is earlier. 2019, in particular, was a bad year for banks as the Fed cut interest rates thrice. GDP, for example, will be down this year in the US, and unemployment levels will be well up over last year.
US Federal Reserve Chairman Jerome Powell cautioned lawmakers in the US on the uncertainty and economic damage that still remains even with the coronavirus vaccine. Paid Post There’s a reason over 2.5 million people start their day with Morning Brew the daily email that delivers the latest news from Wall Street to Silicon Valley.
Europe
The ECB’s easing measures should help keep bond yields low, spreads narrow and EUR/USD around 1.20 in the near future. Further options the ECB could consider include a deposit rate cut, which we do not expect to see, or lifting the tiering multiplier. PEPP will be expanded but the pace of purchases is unlikely to increase quickly, as the ECB is happy with the current levels of financing conditions. Immediate market reaction could be a small disappointment, but the ECB’s measures should keep yields and spreads low for longer.
Her comments suggest that the ECB does not see a big need to push yields much lower from the current levels. Some could see this as a form of implicit yield curve control, even if the ECB is not going to announce any explicit yield targets. The ECB will also adjust its purchases based on bond supply. ECB likely to adjust its inflation forecasts down Please find enclosed Nordea’s latest Nordic card data.The entire publication can be found here* *Data including week 48, until 29/11/2020.
It looks very likely the ECB make changes to allow the lower borrowing rate to prevail for longer. We expect the ECB to expand the PEPP and announce new TLTROs with easier terms at its meeting next week.
0 Her comments suggest that the ECB does not see a big need to push yields much lower from the current levels. Some could see this as a form of implicit yield curve control, even if the ECB is not going to announce any explicit yield targets. The ECB will also adjust its purchases based on bond supply. ECB likely to adjust its inflation forecasts down Please find enclosed Nordea’s latest Nordic card data.The entire publication can be found here* *Data including week 48, until 29/11/2020.
It looks very likely the ECB make changes to allow the lower borrowing rate to prevail for longer. We expect the ECB to expand the PEPP and announce new TLTROs with easier terms at its meeting next week.
