Open: New York Session | Forex, Metals, Oil, Agriculture July 16, 2021

A member of the National Guard plays a trumpet during a flag rai

Agriculture

Over two decades ago Jay got his start at the Kansas City Board of Trade in the Wheat Futures pit.

Currencies

The US dollar index, which measures the greenback against a basket of currencies, was flat at 92.604 on Friday and up 0.5 per cent for the week. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06 per cent down at 92.56. If bond yields and the US Dollar follow higher as a result, gold could stand to lose to wrap up the week. It has fallen 0.9 per cent on the dollar this week to $0.7423 and sits at a more than five-month low on the kiwi.
The yen last bought 109.98 per dollar and 129.86 per euro. The Indian rupee opened flat against the US dollar this Friday as investors await fresh triggers, Reliance Securities said in a research note. On the data front, at 17:30GMT, the Philly Fed Manufacturing Index dropped to 21.9 against the expected 28.1 and weighed on the U.S. dollar and supported gold prices. It also weighed on the U.S. dollar and supported gold prices higher. Gold remains relatively unfazed by the uptick in US dollar demand; instead, yellow metals traders continue to zero on real yields for direction.
Image Source: Pixabay The U.S. Dollar Index that measures the greenback value against the basket of six major currencies rose to 92.69 level on Thursday.

Metals

Even with the recent volatility in prices, gold and silver remain among the best-performing commodities this year to combat the fallout from the coronavirus pandemic. Gold prices are trading up by 0.2% at Rs 48,413 per 10 grams. Gold prices are trading down by 0.2% at Rs 48,295 per 10 grams. In global markets, gold rates were trading higher near a one-month high after the US Fed Chief reassured that he was in no rush to tighten policy. Gold remained flat throughout the day as it ended Thursday’s trading session on the same level it started its day with.
Some concerns over a delayed global economic recovery also underpinned gold prices. Meanwhile, silver prices are trading up by 0.3% at Rs 69,651 per kg. In his writing and research, Sumner specializes in monetary policy, the role of the international gold market in the Great Depression, and the history of macroeconomic thought. Gold prices in India today edged lower after rising for three days in a row.
Note that large stimulus measures typically tend to support gold, which is often considered a hedge against inflation and currency debasement.

Oil

However, not all commodities are seeing declines, between high demand for travel and failed talks over OPEC+ production policy, WTI Crude has been trading above $70 per barrel. Global oil benchmark Brent crude futures was trading unchanged at $73.47 per barrel. Greenland ends all future oil exploration.

United States

Competition also is spurring dealmaking; The Wall Street Journal reported Thursday that Intel INTC -1.26% is exploring a deal to buy chip manufacturer GlobalFoundries for around $30 billion. Nasdaq Futures are trading down by 7 points (down 0.1%) while Dow Futures are trading up by 18 points (up 0.1%). Of the nine Wall Street analysts that rated SPWR, one rated it Buy, five rated it Hold while three rated it Sell. Tim Arcuri of UBS says supply constraints could weigh on chip makers’ sales projections just as their earnings momentum also starts to slow.
less Semiconductor giant (INTC) is in talks to buy contract chip maker GlobalFoundries for $30 billion, The Wall Street Journal reported on Thursday, citing sources. Nasdaq-100 futures also advanced 0.2%, pointing to muted gains in technology stocks after the opening bell. For instance, the Fed is equally capable of stopping a demand-side inflation like 1966-69 as it is in stopping a temporary bout of supply-side inflation (such as 2007-08).
Powell said the Fed would discuss Treasuries and mortgage-backed securities (MBS) tapering in the coming weeks – likely the July meeting.
This likely reflected investors seeking safety as stocks on Wall Street weakened. Wall Street expects earnings growth and forward guidance regarding the impact of the recent team up with Mastercard to enhance the payments ecosystem.

China

The past week has witnessed two decisions by Beijing that may be signposts for the rockier road ahead for the highly acquisitive internet titans Alibaba and Tencent.

Europe

The reduction should instead be at least 58% for the EU to be making an appropriate contribution under the Paris Agreement to pursue a warming limit of 1.5C. It boosts the EU s target for solar and wind energy and seeks to make sure buildings are better insulated. But rather than being preoccupied with shortcomings and political wrangling, we should cheer that the EU took a big step in the right direction. Such disbursement would increase the EU s effect on cutting emissions, both directly and indirectly.
With slightly fewer transactions during the period, the European Union intervened in 158 deals, including banning eight of them. EU Plans to Plant Three Billion Trees Under Forestry Strategy It wants to absorb more greenhouse gases from the atmosphere and promote biodiversity. At least the EU was honest: European Commission climate chief Frans Timmermans said.

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