Agriculture
Ukrainian-origin 12.5% soft wheat asking prices were at $287-$299 per tonne late on Monday compared with $290-$303 on Friday, the consultancy said in a report. Arabica coffee futures on ICE closed up on Tuesday, boosted partly by Brazil’s real currency BRL=, which rebounded after last week’s steep losses. 3 supplier of corn.
Currencies
Uncertainty over Joe Biden’s $1.9 trillion covid stimulus plan dragged on the market mood, boosting the safe haven US Dollar which pulled on demand for gold. In this scenario – which has the highest probability – stocks may edge lower after their recent gains and the dollar is unlikely to make any substantial waves. This is because we have the FOMC meeting in the United States, and Chairman Powell may or may not say something that moves the US dollar.
Conversely any hint of gradually reversing stimulus could boost demand for the US Dollar and exert pressure of EUR/USD. Another major driver of this has been the US dollar falling in strength, and I think that continues to be the longer-term cyclical play. The bulk of traders out there are negative on the US dollar (UDN), so eventually the resistance will break. Because of this, I like the idea of buying the British pound on dips, just as I have over the last couple of weeks.
Conversely any hint of gradually reversing stimulus could boost demand for the US Dollar and exert pressure of EUR/USD. Another major driver of this has been the US dollar falling in strength, and I think that continues to be the longer-term cyclical play. The bulk of traders out there are negative on the US dollar (UDN), so eventually the resistance will break. Because of this, I like the idea of buying the British pound on dips, just as I have over the last couple of weeks.
Metals
Even with the recent volatility in prices, gold remains among the best-performing commodities this year to combat the fallout from the coronavirus pandemic. The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions. The company has since rolled back the prices and said it would let users access free-to-play games without the need for Gold membership. In international markets, gold prices dipped 0.3% today ahead of the US Federal Reserve’s monetary policy decision due later in the day.
Amid weak global prices, gold prices today fell sharply in Indian markets. less Gold prices barely changed today as the market waits for the Federal Open Market Committee’s (FOMC) decision on interest rates. Crude steel output from China, the world’s top producer and consumer of the metal, increased by 7.7% to 91.25 million tonnes in December. In physical trading, China’s gold imports via Hong Kong rose for the second consecutive month in December.
Copper sales and prices have jumped in recent months as parts of the world – China especially – began to recover from the coronavirus pandemic. Gold prices are trading down by 0.5% at Rs 48,878 per 10 grams.
Amid weak global prices, gold prices today fell sharply in Indian markets. less Gold prices barely changed today as the market waits for the Federal Open Market Committee’s (FOMC) decision on interest rates. Crude steel output from China, the world’s top producer and consumer of the metal, increased by 7.7% to 91.25 million tonnes in December. In physical trading, China’s gold imports via Hong Kong rose for the second consecutive month in December.
Copper sales and prices have jumped in recent months as parts of the world – China especially – began to recover from the coronavirus pandemic. Gold prices are trading down by 0.5% at Rs 48,878 per 10 grams.
Oil
According to a US oil and gas agency, commercial crude stocks in the country fell sharply by 5.27 million bbl in the week ending the 22nd of January. Still, gasoline stocks rose by 3.01 million bbl, compared to expectations of a 1.76 million bbl increase. Merey 16 stocks at the country’s main oil terminal, the Jose port, fell to 4.85 million barrels as of Jan. 25, down from 9 million barrels on Dec. 21. U.S. crude inventories fell by 5.3 million barrels in the week to January 22 to about 481.8 million barrels, data from an industry body showed.
Daily oil production was restored to 227,200 tonnes on Jan. 25 from about 195,700 tonnes on Jan. 21 and 182,774 tonnes on Jan. 20, the data showed. Green Daily In climate news today… Biden to order climate measures including oil leasing moratorium. Malaysian palm oil futures jumped 2.5%, extending the previous session’s gains, tracking soyoil on the Chicago Board of Trade which was boosted by supply concerns.
Higher draws of gasoline stocks last week in the Central Atlantic region will pull more barrels into the East Coast. Easy money and easier trading with derivatives oil these emotions and allow them to run riot. The drop in crude inventories happened despite refinery utilisation falling by 0.7 percentage points against a forecast of a 0.5 percentage points decrease.
Daily oil production was restored to 227,200 tonnes on Jan. 25 from about 195,700 tonnes on Jan. 21 and 182,774 tonnes on Jan. 20, the data showed. Green Daily In climate news today… Biden to order climate measures including oil leasing moratorium. Malaysian palm oil futures jumped 2.5%, extending the previous session’s gains, tracking soyoil on the Chicago Board of Trade which was boosted by supply concerns.
Higher draws of gasoline stocks last week in the Central Atlantic region will pull more barrels into the East Coast. Easy money and easier trading with derivatives oil these emotions and allow them to run riot. The drop in crude inventories happened despite refinery utilisation falling by 0.7 percentage points against a forecast of a 0.5 percentage points decrease.
United States
Under the Trump administration, exports to China slowed for years due to a trade war before surging in 2020 after the two countries inked a Phase 1 trade deal. While the US central bank is not expected to make any major announcements, traders will be keen to find out about any new plans for monetary policy. Unemployment remains terribly high, but with Janet Yellen and Jerome Powell working together, we won’t see a change in Fed policy until employment numbers improve.
What is the UBS House view?I see the future trajectory as being positive and that it is reasonable to expect 10 per cent upside from current levels in 2021.
If the Fed Chair says that recent data was somewhat disappointing, investors may conclude that Gross Domestic Product data for the fourth quarter missed estimates. Fed policy drives liquidity, and liquidity drives the stock market. Today is FOMC day, with the recent discussion on the timing of tapering among Fed members seemingly settled as too early to forecast when it would be appropriate. A lot of this could have something to do with caution ahead of today’s Fed decision.
It will also include U.S energy officials, as Washington shifts course under President Joe Biden, who has pledged to tackle climate change. The main deviation in the post-1999 period is around 2012 when the hawks finally capitulated on their belief that the Fed would rapidly normalize rates.
What is the UBS House view?I see the future trajectory as being positive and that it is reasonable to expect 10 per cent upside from current levels in 2021.
If the Fed Chair says that recent data was somewhat disappointing, investors may conclude that Gross Domestic Product data for the fourth quarter missed estimates. Fed policy drives liquidity, and liquidity drives the stock market. Today is FOMC day, with the recent discussion on the timing of tapering among Fed members seemingly settled as too early to forecast when it would be appropriate. A lot of this could have something to do with caution ahead of today’s Fed decision.
It will also include U.S energy officials, as Washington shifts course under President Joe Biden, who has pledged to tackle climate change. The main deviation in the post-1999 period is around 2012 when the hawks finally capitulated on their belief that the Fed would rapidly normalize rates.
Europe
Vaccine nationalism it seems is the new trade protectionism.The EU hinges on the notion of the greater good. Was it a failure by state governments or by the EU coordinators in Brussels?The truth may be somewhere in the middle.
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