Open: New York Session | Forex, Metals, Oil, Agriculture June 10, 2021

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

Currencies

Any deviation from the forecast will move the dollar, as the market participants became extremely sensitive to inflation data during the last months. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. But it is unclear if the bid tone behind the euro is due to the ECB’s relative hawkishness or the US dollar’s ongoing weakness. Deutsche Bank AG: The company expects to take a 300 million euro hit from a recent court ruling that favours consumers over banking fees, the lender’s finance chief said.
Also, forty-five minutes later, the ECB staff projections on inflation and economic growth are destined to move the euro markets. United Airlines Holdings Inc & Boeing Co: United is in talks to place a multi-billion-dollar order for single-aisle jets potentially split between Boeing and Airbus, industry sources said. Gold prices fell, pressured by a firm dollar.
Gold prices fell, pressured by a firm U.S. dollar. Weakness in XAU/USD might have been explained by a rising US Dollar during the Wall Street trading session. The US dollar is consolidating at a higher level against most of the major currencies.

Metals

GOLD TECHNICAL ANALYSIS Gold prices may be vulnerable in the near term from a technical perspective. Gold is often viewed as an anti-inflationary hedge, so weakening price pressures might explain the yellow metal’s consolidative state since late May. Precious metals like gold and silver are also rising on inflation fears as these often act as an inflation hedge. US CPI could provide further clues as to the Fed’s monetary policy path amid expectations of tapering and therefore provide clues as to where gold goes from here.
His thoughts on gold are captured each week on a program called Gold Game Film in collaboration with Kitco News and TheStreet.com. Falling for the third consecutive session, gold has made new lows for the week near $1876. less Anti-fiat gold prices aimed cautiously lower over the past 24 hours despite the 10-year Treasury yield closing at its lowest point in over 3 months. Venturing into the uranium market, which is much smaller than oil or gold markets, is unusual for a firm that typically invests in corporate debt.
Gold is heading mildly lower for a third straight day ahead of the all important ECB meeting and US CPI data. Steel rebar and iron ore futures advanced for the second consecutive session in Asia, while copper is off for the third session.

Oil

BEFORE THE BELL Futures for Canada s main stock index inched higher as oil prices rose, a day after slipping on data indicating weak U.S. driving season fuel demand. On the contrary, a negative or not entirely positive report could affect the barrel of crude oil, causing a price reduction. Notably, oil price jumped to $70 per barrel for the first time since 2018 on optimism over higher energy demand and tightening supply. Oil prices rose, a day after slipping on data indicating weak U.S. driving season fuel demand.
Crude stocks were meanwhile 5.2 million barrels lower in the week to 474 million barrels. With more than 25 years of experience, Stephen has a deep-seated knowledge of G10 and Asian currency markets as well as precious metal and oil markets. The crude oil price is the star of the week so far. Today’s OPEC report should confirm these good feelings, consolidating and thus supporting this recovery in the price. less Inflation is more than just any old touchy subject in an age overflowing with crude, visceral debates up and down the spectrum reaching into every corner of life.
Ahead of OPEC’s monthly report, June WTI is consolidating below $70 a barrel.

United States

At the same time, the US inflation data is expected to increase on a monthly basis by 0.4% on the headline release and by 0.5% on the core data. The ECB’s decision and the US inflation data are issued within a time span of about forty-five minutes, so rising volatility is a given. The US 10-year yield closed below 1.50% for the first time in three months yesterday, and this may have helped underpin the Japanese yen. Payments processor Marqeta made its Wall Street debut Wednesday, its shares climbing to give the company a market value of $16 billion.
WSJ’s Aaron Back explains why the recent shake-ups in the value of bitcoin, dogecoin, ether and other cryptocurrencies may point to obstacles in mainstream acceptance. But, it is unclear to the extent a better-than-anticipated result can materially shift the landscape of Fed tapering expectations given ongoing dovish commentary. Three US Senators were aboard the flight, and at least one confirmed that if Taiwan was attacked, the US would come to its aid.
Anchorage’s physical uranium holdings are also a rarity because Wall Street firms don’t typically own physical uranium. Real yields in the US remain at incredibly low levels, and would not be where they are if not for Fed buying. Restaurant and hotel workers are especially fed up 5.6% of workers threw in the towel in May, up from 5.4% in April.

China

Beijing’s contingency plans would always have to recognize this possibility, but the origin of the opaque position was aimed at Taipei, not Beijing. Beijing agreed to buy $80 bln of US agriculture products over two years and, as of April, was estimated to be more than 20% behind. Chinese President Xi Jinping said the government must advance ethnic unity while on a visit to Xinjiang and Tibet. A specific mention of Xinjiang, the region where it has been accused of abuses against Muslim Uyghurs, is still being debated.
Still, the PBoC pushback on CNH makes it harder for the USD to sell off aggressively. This appeared to be an escalation of Beijing’s show of force.

Europe

Traders and investors alike have watched financial markets moving in tight ranges, waiting for the European Central Bank (ECB) to deliver its monetary policy and for US inflation data. The EU warned it could impose tariffs and quotas on the U.K. in an escalating Brexit dispute over trade with Northern Ireland after talks ended without a breakthrough. Unsplash The ECB is expected to keep rates unchanged at 0.0% and the PEPP bond purchase program unchanged at €1.85 trillion.
On June 1, a new digital COVID passport went live in seven European Union (EU) member countries, allowing travelers to move more freely throughout the bloc. The U.S. and the EU plan to launch a framework next week to harmonize policy on Russia. Expect ranges and the slow price action to dominate until the ECB delivers its decision. Moreover, even with the ECB and US CPI later this week, SPX at-the-money straddles are only pricing 80bp through Friday’s close. Europe’s Dow Jones Stoxx 600 is little changed and has a four-day rally in tow ahead of the ECB meeting.
The ECB upped the pace at which it purchased bond in March. The remaining 20 EU members are scheduled to go live by July 1.

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