Agriculture
Ivory Coast, the world’s top cocoa producer, is in the dry season, which runs from mid-November to March, when downpours are poor or scarce.
Currencies
In the past year, US economy suffered a -3.5% contraction, despite ultra-low interest rates, low inflation, weak dollar and huge fiscal injections. Gold and silver prices exhibited a negative relationship with the DXY US Dollar index, showing correlation coefficients of -0.79 and -0.92 respectively over the past 12 months. The US Dollar (DXY) index retreated to 90.74 from a two-month high of 91.55 as stimulus hopes were built against the backdrop of a much weaker-than-expected non-farm payrolls report.
Higher bond yields have helped lift the U.S. Dollar Index and restrain gold and silver prices so far in 2021. London copper hit a one-month high on U.S. stimulus hopes, tight supplies and a weaker dollar that made greenback-priced metals cheaper to holders of other currencies. less BL Research Bureau The rupee (INR) has started the session on a positive note against the dollar (USD), opening at 72.87 to the previous close of 72.96 levels. A stronger dollar and rising US Treasury yields have weighed on the precious metal this year after big gains last year.
FOREX: The dollar struggled at a one-week low as traders grew wary about the prospects for the greenback against the backdrop of a large U.S. fiscal stimulus package. Trade strategy With the weakness in the dollar index, the rupee is showing minor positive bias. Further weakness in the Greenback may continue to support precious metal prices, which tend to be inversely correlated to the US Dollar.
Higher bond yields have helped lift the U.S. Dollar Index and restrain gold and silver prices so far in 2021. London copper hit a one-month high on U.S. stimulus hopes, tight supplies and a weaker dollar that made greenback-priced metals cheaper to holders of other currencies. less BL Research Bureau The rupee (INR) has started the session on a positive note against the dollar (USD), opening at 72.87 to the previous close of 72.96 levels. A stronger dollar and rising US Treasury yields have weighed on the precious metal this year after big gains last year.
FOREX: The dollar struggled at a one-week low as traders grew wary about the prospects for the greenback against the backdrop of a large U.S. fiscal stimulus package. Trade strategy With the weakness in the dollar index, the rupee is showing minor positive bias. Further weakness in the Greenback may continue to support precious metal prices, which tend to be inversely correlated to the US Dollar.
Metals
In the previous session, gold had surged 1.3%, tracking a rebound in global prices as the yellow metal attracted increasing interest from dealers seeking out the safe haven. Gold prices have been very volatile this year after hitting a record high of Rs 56,200 in August last year. Squeeze or no squeeze, this episode did act to dispel one myth – that millennials have rejected gold and silver in favor of cryptocurrencies. The more yields sink below inflation and expectations of future inflation, the more attractive gold and silver become as alternatives to bonds and cash.
Besides, relative underperformance of gold prices this year could be attributed to rising longer-dated US Treasury yields and an exuberant stock market rally. less As recently as last week, millennials were being billed as gold-phobic and charged as a hindrance to any possible future move in gold (GLD) and silver. Gold prices edged higher in Indian markets today following a rebound in global rates.
The ministry said gold production also dipped 32% in 2020, to 87.3 million fine grams. But, in global markets, gold has risen around 3% since hitting a two-month low on February 5, 2021, and was trading at US$ 1,841 an ounce. Palisades Goldcorp after all was the single largest investor in junior silver companies in 2020 in Canada, investing over $25M in silver private placements.
Besides, relative underperformance of gold prices this year could be attributed to rising longer-dated US Treasury yields and an exuberant stock market rally. less As recently as last week, millennials were being billed as gold-phobic and charged as a hindrance to any possible future move in gold (GLD) and silver. Gold prices edged higher in Indian markets today following a rebound in global rates.
The ministry said gold production also dipped 32% in 2020, to 87.3 million fine grams. But, in global markets, gold has risen around 3% since hitting a two-month low on February 5, 2021, and was trading at US$ 1,841 an ounce. Palisades Goldcorp after all was the single largest investor in junior silver companies in 2020 in Canada, investing over $25M in silver private placements.
Oil
In tandem with the normalisation of societies, oil demand will increase and so will oil prices. Still, gasoline inventories are anticipated to have risen by 1.8 million bbl, while distillates are likely to have fallen by 765,000 bbl. Since oil has a direct impact on the transportation sector (IYT), that too was able to break back over its 50-DMA last week. According to a Reuters poll, US commercial crude stocks are expected to show a build of 1.34 million bbl for the week ending the 5th of February.
Like its rivals, the oil and gas major suffered as fuel consumption plummeted during the pandemic. With oil moving upward, the notion that inflation is also moving up could become worrisome, especially if the transportation sector does not follow. If oil prices hold their ground, as we expect, we will get there in the near term. Looking ahead, there are good reasons oil prices will continue to rise gradually. By watching both oil and transportation we can better keep track of the long-term picture for market recovery.
Oil (USO) has blasted off with the rest of the market in the last 5 trading days.
Like its rivals, the oil and gas major suffered as fuel consumption plummeted during the pandemic. With oil moving upward, the notion that inflation is also moving up could become worrisome, especially if the transportation sector does not follow. If oil prices hold their ground, as we expect, we will get there in the near term. Looking ahead, there are good reasons oil prices will continue to rise gradually. By watching both oil and transportation we can better keep track of the long-term picture for market recovery.
Oil (USO) has blasted off with the rest of the market in the last 5 trading days.
United States
The Democrat-led Senate is working towards approving the US$1.9 trillion stimulus bill, which aims to revitalize consumer spending, strengthen vaccine delivery and foster a faster recovery from the pandemic. Following the catastrophic mishandling of the pandemic by the Trump administration, total cases are approaching 27 million and the 440,000 deaths exceed US military fatalities in World War II. Nasdaq Futures are trading down by 5 points (flat) while Dow Futures are trading flat.
The S&P also continued its run into the rarified air of no resistance, although – like the Nasdaq – it continued to lose ground relative to the Russell 2000. Some sideways consolidative price action might even be healthy, as the Fed begins to rollout more stimulus money. ) Tepid job market sentiment called for more fiscal support and may refrain the Fed from considering tapering any time soon. No matter how inadequate those institutions may be, withdrawing American participation, as President Trump did, created a wide opening for Beijing to expand its soft power.
One of the Fed’s goals is to help the U.S. government and other large debtors steadily chip away at their real obligations. American business needs a cheerleader — Mr. Biden can provide where Mr. Trump failed — but hardly needs coercion. If all 50 Democrats agree that it can, both House impeachment managers and Trump s defense team will begin their cases tomorrow.
The S&P also continued its run into the rarified air of no resistance, although – like the Nasdaq – it continued to lose ground relative to the Russell 2000. Some sideways consolidative price action might even be healthy, as the Fed begins to rollout more stimulus money. ) Tepid job market sentiment called for more fiscal support and may refrain the Fed from considering tapering any time soon. No matter how inadequate those institutions may be, withdrawing American participation, as President Trump did, created a wide opening for Beijing to expand its soft power.
One of the Fed’s goals is to help the U.S. government and other large debtors steadily chip away at their real obligations. American business needs a cheerleader — Mr. Biden can provide where Mr. Trump failed — but hardly needs coercion. If all 50 Democrats agree that it can, both House impeachment managers and Trump s defense team will begin their cases tomorrow.
Europe
Italy may also issue a new 50y bond, while the EU is expected to sell bonds across the curve. The ECB cut the deposit rate by only 10bp and has been on hold since then.) This spread has been below the current entry level in 2015 (ECB QE) and one year ago (Covid). His feature articles have been published on: FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. Remember the excessive expectations for ECB rate cuts?
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