Open: New York Session | Forex, Metals, Oil, Agriculture July 28, 2021

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

Agriculture

Starbucks Corp: The coffee chain forecast fourth-quarter sales above Wall Street estimates on Tuesday despite headwinds in China as travel restrictions related to COVID-19 loom longer than expected. The coffee chain reached a deal with Sweden-based (OTLY) for supplying the oat milk for the drinks in March. Over two decades ago Jay got his start at the Kansas City Board of Trade in the Wheat Futures pit. Shares of Heritage Food and Tata Coffee hit their 52-week highs today.

Currencies

The note further said that regional currencies were flat to marginally stronger against the dollar early Wednesday morning and could cap depreciation bias. At the interbank foreign exchange, the domestic unit opened at 74.44 against the dollar, then inched higher to 74.43, registering a gain of 4 paise over its previous close. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.04 per cent up at 92.46.
Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. Gold prices held steady as investors held back from making large bets and the dollar firmed. A more dovish-biased statement may soften the US Dollar and buoy commodity prices, whereas a hawkish one may lead to the reverse. On Tuesday, the U.S. Dollar Index that measures the greenback value against the basket of six major currencies dropped to 92.32 level.
less The British Pound is trading in a very tight range against the US Dollar just ahead of the London session. The S&P/CS Composite-20 HPI for the year rose to 17.0% against the predicted 16.1% and supported the U.S. dollar, limiting the rising prices of gold. Visa reported a 34% jump in third-quarter payment volumes on a constant dollar basis, while the number of transactions processed surged 39%.

Metals

Following a positive trend in international spot prices, gold prices were trading marginally higher in domestic markets today. less The real bull market in Gold won’t begin until stagflation hits, which should coincide with the end of the handle on Gold’s cup and handle pattern. In global markets, gold prices were steady at around US$ 1,800 per ounce ahead of the outcome of the US Federal Reserve meeting. Gold prices are trading up by 0.3% at Rs 47,585 per 10 grams.
Gold prices are trading up 0.1% at Rs 47,616 per 10 grams. The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions. Even with the recent volatility in prices, gold remains among the best-performing commodities this year to combat the fallout from the coronavirus pandemic. On MCX, gold futures were trading 0.2% higher at Rs 47,676 per 10 grams in early trade. Then Gold and gold stocks will outperform the stock market.
Spot gold is currently trading at $1,805.03 per ounce as of 0715 GMT.

Oil

Oil rose ahead of an industry report expected to show U.S. crude inventories fell more than expected. Crude oil stocks fell 4.78 million barrels, compared to an estimated 3.43-million-barrel drop. less Crude oil prices edged slightly higher during Thursday’s APAC session after falling 0.43% a day ago. Gasoline inventories declined by 6.23 million barrels, compared to the previous week’s 3.31-million-barrel build.

United States

Investors are holding their breath for Wednesday’s FOMC meeting and Jerome Powell’s press conference for clues about the Fed’s tapering timeline. The Federal Open Market Committee will release its policy statement today at 1800 GMT, followed by a news conference by Fed Chair Jerome Powell. The Fed Funds price at 12.6 basis-points in June 2022, which is only 2.5 bps above the current effective Fed Funds. Nasdaq Futures are trading down by 10 points (down 0.1%) while Dow Futures are trading down by 67 points (down 0.2%).
Having the effective fed funds rate close to the mid-point is basically all that matters for the Fed. The increasing WAM of the SOMA-portfolio could be an early sign that the Fed intends to maturity-sugarcoat a tapering process that arrives EARLIER than anticipated. “Investors could refrain themselves from taking large positions ahead of monthly expiry and Fed decision tonight,” Reliance Securities said in a research note.
US stock futures are trading lower today, indicating a negative opening for Wall Street. Edward Meir of ED&F Man Capital Markets added that any selloff would be careful and deliberate as the current has already considered much of the Fed’s move.
Is the Fed already stealth-twisting its purchases in an early attempt to sugarcoat a tapering process?

China

“The selloff in Chinese tech stocks on Beijing’s regulatory crackdown has triggered concerns about whether this selloff will spread to other segments. Jack Ma crossed the Xi Jinping regime and had to cancel a planned IPO for his Ant Financial division’s IPO, which was set to raise $37 billion last year.

Europe

The contract has been signed by 16 of the 27 EU states, which could buy the drug only after it is approved by EMA or by national drug regulators.

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