Open: New York Session | Forex, Metals, Oil, Agriculture February 05, 2021



Jumps in cereals, sugar and vegetable oils led the rise, the agency said. The latest increase reflected strong gains in sugar, cereals and vegetable oils. MARKET NEWS U.S. corn futures edged lower, although confirmation of soaring demand from China kept prices at a more than seven-year high. A drought late last year delayed sowing of Brazil’s soybeans, and excess rainfall disrupted harvesting in January.


Dollar indexExtending the rally, the dollar index advanced and closed at 91.53 as against prior session’s close of 91.17, thereby gaining about 0.4 per cent. The dollar rose amid rising Treasury yields, stabilization of the US labor market and confidence in the economic outlook stateside. Yesterday, gold suffered a collapse through important support as the dollar and US yields rise took the precious metal to its lowest levels since December. The prospects of higher US growth and more debt issuance have been causing a sell-off in bonds, and the resulting higher yields make the dollar more attractive.
Most industrial metals rose as appetite for riskier assets returned following a fading GameStop-style frenzy, although a stronger dollar limited gains. FOREX: The dollar headed for its best weekly gain in three months, lifted by growing confidence that the U.S. economic recovery will outpace its global peers. The US dollar has been on the rise and may suffer a setback if the figures fall short of elevated estimates.
A stronger US dollar and rising US Treasury yields dented gold’s appeal. Trade strategy The rupee is lacking direction as the foreign inflows in to the domestic market and dollar strengthening has been balancing out each other. Now that the resistance at 91.50 is taken out, the dollar index will most likely touch 92.00 and this can put some downward pressure on the rupee.


In the previous session, gold had dropped over Rs 1,000 or 2% per 10 gram while silver had slumped Rs 1,500 or 2.1% per kg. Note that the recent fall in global prices and import duty cut in the Budget 2020-21 has pushed gold prices in India to near seven-month lows. S&P 500 futures pointed to another move higher at the open ahead of the jobs report, the 10-year Treasury yield was at 1.157%, oil rose and gold gained. In global markets, gold prices edged up but still remained below the key psychological US$ 1,800 level.
Gold prices are trading up by 0.4% at Rs 46,880 per 10 grams. Gold prices today struggled to edge higher after a sharp four-day fall. In August, gold had hit a record high of Rs 56,200 per 10 grams. Of note today, gold continues to break down and head lower towards my forecast bottom in the $1700s that I discussed in my 2021 Fearless Forecast. On MCX gold futures were up 0.3% to Rs 46,857 per 10 grams. Key support in gold being the November low at $1765 with resistance at $1805 followed by $1835.


Equinor said in a separate statement that the reservoir is expected to contain between 44 million and 69 million barrels of oil equivalent. In contrast, fuel oil stocks showed a draw of 29,000 mt to 1.43 million mt. However, oil prices above $50/bbl are expected to prove to be a boon for the industry, which has been struggling with high debt and bankruptcies in recent months. But oil processors appear to be skimping on routine spring overhauls that typically prepare refineries for peak summer output.
Similarly, discipline among oil producers could slip if prices rise too fast. Ubben’s investment firm Inclusive Capital Partners is also discussing taking a stake in the U.S. oil producer if he was appointed to the board, according to the report. Brent crude oil meanwhile is marching toward resistance at $60/b, the 61.8% retracement of the 2018 peak to the 2020 low. The U.S. sanctioned Gertler and his companies in 2017 for allegedly corrupt mining and oil deals in the Democratic Republic of Congo.
Gasoline stocks increased by 62,000 mt to 1.29 million mt. At 0900 GMT, the front month Brent futures contract on the ICE was seen at $59.53/bbl, up by 1.17% compared to yesterday s settlement.

United States

WSJ analyzed how Reddit posts, YouTube videos and tweets by personalities including Elon Musk spread online and fueled a trading craze that turned Wall Street upside down. Last week, Dallas Fed President Robert Kaplan said he expected very enthusiastic debates about scaling back asset purchases. US stock futures are trading higher today, indicating a positive opening for Wall Street. Though some officials have discussed the idea of a 2021 taper, Fed chair Jerome Powell reiterated last week that the whole focus on exit is premature.
Yoo Myung-hee s withdrawal comes after some former U.S. government officials urged President Joe Biden to endorse Okonjo-Iweala after the Trump administration blocked her selection.
Following last weeks announcement of JnJ large scale test results proving the vaccine to be 66% efficient, JnJ has requested Emergency Use Authorization from the FDA in the US. This makes this US fund manager the fastest growing in the US with assets up from $3bn at the same time last year. Sterling pulled higher across the board as noted above.- with the US numbers perhaps the more remarkable, given the more lax attitude toward locking down there.
Yields also got a boost from mass vaccinations, as a result of which the US economy is expected to achieve a speedy recovery. Contrary to the US, Europe’s latest economic figures have been mixed at best, with Germany reporting a fall of 1.9% in factory orders in December.


Rather than embrace what seems like all its “money printing” coming to fruition finally, the ECB immediately poured reasonable and honest cold water all over it. David J. Merkel, CFA — 2010-present, I run my own equity asset management shop, called Aleph Investments. David Merkel is an investment professional, and like every investment professional, he makes mistakes. Nowadays, even when there might be the slightest trace, those at the ECB, anyway, are approaching this differently.
EU lawmakers set to urge market-linked levy on imported carbon.