Currencies
In international markets, gold edged higher to a near five-month high of US$1,914.26 earlier in today’s session, supported by a weaker US dollar and inflation concerns. As for markets, a falling dollar is generally associated with foreign stock outperformance and rising real asset prices. less The rupee opens on a flat note tracking the overall weakness of the dollar. Breaking down below that level would be very bearish, but I would think somewhat impossible without the US dollar spiking suddenly and OPEC changing its tune in general.
If the number fails to meet an estimation of 650k, this could lead to a deeper pullback in the US Dollar and buoy bullion prices. The DXY US Dollar Index is hovering near a five-month low of 89.78, offering an additional pillar of support to the precious metal. A falling US dollar could be helpful, but we will have to wait to see whether or not it happens. Bullion has surged over 13% since early April, underpinned by a weakening US Dollar and growing inflationary pressure.
Positioning in the futures markets remains wildly neutral with no big one-way bets against the dollar. Target Inflation in the euro area climbed to 2% in May, the highest level in more than two years.
If the number fails to meet an estimation of 650k, this could lead to a deeper pullback in the US Dollar and buoy bullion prices. The DXY US Dollar Index is hovering near a five-month low of 89.78, offering an additional pillar of support to the precious metal. A falling US dollar could be helpful, but we will have to wait to see whether or not it happens. Bullion has surged over 13% since early April, underpinned by a weakening US Dollar and growing inflationary pressure.
Positioning in the futures markets remains wildly neutral with no big one-way bets against the dollar. Target Inflation in the euro area climbed to 2% in May, the highest level in more than two years.
Metals
Gold and silver prices edged higher today in Indian markets, supported by positive global cues. Gold prices edged higher in Indian markets today, supported by positive global cues. Real yield has historically exhibited a negative relationship with gold prices, because it serves as a good proxy of the opportunity cost to hold the non-interest-bearing precious metal. less Gold prices traded higher toward a fresh four-month high during Tuesday’s APAC session.
Gold prices are trading up by 0.5% at Rs 49,082 per 10 grams. Gold prices are trading up by 0.6% at Rs 49,121 per 10 grams. Gold stocks are very close to breaking out against Gold and we explain why this is very significant. In early January, these traders were net long 279,318 contracts in gold futures, which they gradually began to trim. That has implications for investors obviously, most prominently in the real asset side of your portfolio – commodities, gold, and real estate. S&P 500 futures pointed to a strong start to the week, the 10-year Treasury yield was at 1.623% and gold was broadly unchanged.
Gold prices are trading up by 0.5% at Rs 49,082 per 10 grams. Gold prices are trading up by 0.6% at Rs 49,121 per 10 grams. Gold stocks are very close to breaking out against Gold and we explain why this is very significant. In early January, these traders were net long 279,318 contracts in gold futures, which they gradually began to trim. That has implications for investors obviously, most prominently in the real asset side of your portfolio – commodities, gold, and real estate. S&P 500 futures pointed to a strong start to the week, the 10-year Treasury yield was at 1.623% and gold was broadly unchanged.
Oil
Source: FRED Crude oil prices extended higher above a key resistance level of $ 67.00 after the OPEC+ painted a positive outlook for global energy demand. Crude oil exports from Middle East were lower while North African exports were higher w-o-w. Saudi Arabian exports were lower at 5.8 million bpd for the week. If Iranian oil exports are allowed to resume, this will weigh oil prices in the short-term. The combination of somewhat higher oil prices and higher rates in Norway is why we hold our view that the cross will come down to 9.75 by year-end.
Higher oil prices and a higher NIBOR is why we still expect EURNOK to come down to 9.75 by year-end. In the medium-term, we still see solid arguments for higher oil prices. Moreover, the arguments for higher oil prices have strengthened lately. Oil rise Drilling down from the headline inflation number this morning, there is clearly a large effect from energy prices. Oil prices were in the green on robust fuel demand.
Earlier, the Joint Technical Committee (JTC) of the group agreed on the forecast for a 6 million bpd growth in oil demand in 2021.
Higher oil prices and a higher NIBOR is why we still expect EURNOK to come down to 9.75 by year-end. In the medium-term, we still see solid arguments for higher oil prices. Moreover, the arguments for higher oil prices have strengthened lately. Oil rise Drilling down from the headline inflation number this morning, there is clearly a large effect from energy prices. Oil prices were in the green on robust fuel demand.
Earlier, the Joint Technical Committee (JTC) of the group agreed on the forecast for a 6 million bpd growth in oil demand in 2021.
United States
S&P futures are up 16.5 points at 4,219, Dow futures are up 171 points at 34,684 and Nasdaq futures are up 48 points at 13,734. US stock futures are trading higher today, indicating a positive opening for Wall Street. Friday’s US nonfarm payrolls report will be closely watched by traders for clues about the health of the labor market and its ramifications for the Fed’s policy guidance. It also has implications for the US economy and the rest of the world too, especially emerging markets.
If the Fed were to end QE and hike rates quicker than it has said, it wouldn’t concern markets much.
The rate has been falling since early April as fears about a “taper tantrum” faded after Fed officials reiterated their dovish stance. less The US economy is still stuck in the stall its been in since early spring. (NASDAQ: TSLA) decision to stop accepting the apex cryptocurrency was one of the precipitating factors for the decline in cryptocurrency valuations during May. Today, Wall Street continues to use Zacks research including the Zacks Rank and Zacks Equity Research, which combines the best of quantitative and qualitative analysis.
He also writes our most talked-about publication, an e-letter called , where he reveals how Wall Street’s high-stakes game is really played, and how to win it.
If the Fed were to end QE and hike rates quicker than it has said, it wouldn’t concern markets much.
The rate has been falling since early April as fears about a “taper tantrum” faded after Fed officials reiterated their dovish stance. less The US economy is still stuck in the stall its been in since early spring. (NASDAQ: TSLA) decision to stop accepting the apex cryptocurrency was one of the precipitating factors for the decline in cryptocurrency valuations during May. Today, Wall Street continues to use Zacks research including the Zacks Rank and Zacks Equity Research, which combines the best of quantitative and qualitative analysis.
He also writes our most talked-about publication, an e-letter called , where he reveals how Wall Street’s high-stakes game is really played, and how to win it.
Europe
Merkel Is Ready to Give Up Lockdown Powers Latest sign that pandemic is releasing its grip on Europe s largest economy. Merkel is sending a high-ranking negotiating team to Washington this week to discuss the controversial Nord Stream 2 pipeline project, Funke media group reported. European Union moves to close ivory trade loopholes, but it may be too little too late for the world s elephants. By now, I have built up excellent skills and experience in analyzing macroeconomic and political developments in Europe, the Eurozone and Germany, including ECB watching.
His feature articles have been published on: FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. Main focus: Europe, Eurozone, Germany and ECB.
0 His feature articles have been published on: FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. Main focus: Europe, Eurozone, Germany and ECB.
