Open: New York Session | Forex, Metals, Oil, Agriculture June 15, 2021

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

Agriculture

From copper to corn, markets show peak inflation fear has passed.

Currencies

The Swiss franc and the euro strengthened 0.2% against the U.S. dollar and the British pound was mostly flat against the dollar, with 1 pound buying $1.41. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. The biggest gains against the US dollar are seen in the kiwi dollar and the euro. Meanwhile, the FX market has mostly been in a phase of quiet consolidation after the US Dollar had put in a bit of a rally.
In case of a move below 90.35, the dollar will come under pressure across the board. The dollar edged higher. The U.S. dollar edged higher. This also offered some upward momentum to the US Dollar. The euro strengthened in sync with a rise in US bond yields. less The EURUSD pair rose 0.09% to 1.2119 on Monday, June 14, correcting higher after Friday’s pullback.

Metals

More Bombay HC refuses to stay mandatory gold jewellery hallmarking Hallmarking of gold jewellery has been brought in to protect consumers’ interest. less Investing.com Follow For almost as long as the terms precious metals and safe-haven have been around, gold has ruled the roost for both, with silver playing second fiddle. For almost as long as the terms precious metals and safe-haven have been around, gold has ruled the roost for both, with silver playing second fiddle.
less Anti-fiat gold prices weakened over the past 24 hours as financial markets took a very different approach from what was witnessed this past week. Indian shoppers will get the assurance of their gold jewellery purchases’ marked purity and credibility as these norms become mandatory. Dwindling confidence and concern over the direction of the country along with rising inflation expectations continue to drive strong demand for physical gold and silver. With the norms slated to come into effect from Wednesday, jewellers will sell gold jewellery of only 14, 18 and 22 carats.
The real deal is where silver is trading today versus gold. It’s based on the price ratio between the two metals that tells of silver’s independent value—i.e., the smaller the ratio, the better for silver. Even with the recent volatility in prices, gold remains among the best-performing commodities this year to combat the fallout from the coronavirus pandemic.

Oil

International oil benchmark Brent crude was trading 0.25 per cent higher at $73.04 per barrel. The oil market has been buoyed by economic recovery in the West, which is boosting oil demand. So what can an oil company do to reduce the demand for oil? Oil companies that get into EV charging early could end up enjoying a larger share of the market than they did serving fuel to ICE cars. But this time might be different, with a growing number of people convinced that peak oil demand may be in sight.The business environment also is conducive for cutting emissions.
Oil prices rose, amid optimism that demand will recover rapidly in the second half of this year. Oil companies ideally would like to make up for the revenue lost from selling gasoline to internal-combustion engine cars by powering EVs instead. Enbridge Wins Minnesota Court Ruling on Oil Pipeline Permit A key permit for Enbridge Inc. s Line 3 oil pipeline was upheld by the Minnesota Court of Appeals.
Increasing pressure on major oil companies has forced many to make promises to reduce the extraction of their main fossil fuel. This translates into a Brent/WTI spread of $2.02/bbl, a relatively narrow spread, which could limit US crude oil exports especially to Europe.

United States

June potential arrivals were now tracking at 292,000 tons according to Refinitiv tracking data, an increase from May which saw just 180,000 tons arrive from the US. Such a reaction may have been due to expectations surrounding the upcoming FOMC rate decision and press conference by Fed Chair Jerome Powell, scheduled for June 16. Markets riseGlobal equities are pushing higher again as investors remain calm over the prospect of any major moves from the Fed tomorrow.
Bond yields also remain depressed amid expectations that inflation will be transitory and the Fed won’t be forced to slam on the breaks.
In US stock markets, Wall Street indices ended at record highs helped by tech names. Nasdaq Futures are trading up by 22 points (up 0.2%) while Dow Futures are trading up by 84 points (up 0.3%). But you have a horrible drought out West, so it’s conceivable that food price increases won’t dip as much as many traders (and possibly the Fed itself) expect. US stock futures are trading higher today, indicating a positive opening for Wall Street. But, the close proximity of the Fed could mean that lasting follow-through may have to wait until this event risk passes.
But Trump was able to reduce immigration among deported Mexicans and at least temporarily among Central Americans.

China

Very illSpeaking of trade and China, the world s second-largest economy hit back at President Joe Biden s efforts to build a coalition to counter Beijing.

Europe

Southern California Edison What to Watch The EU is set to lift travel restrictions for U.S. residents as soon as this week. EU set to lift travel curbs for U.S. residents this week. UK PM Boris Johnson delayed the final reopening of the UK economy by 4 weeks.

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