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

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

Currencies

The British pound strengthened 0.2% against the U.S. dollar, with 1 pound buying $1.41 whereas the Swiss franc and the euro traded flat against the dollar. Gold came under pressure amid a stronger US Dollar on expectations that the Fed could start introducing a gradual move towards tightening monetary policy. In global markets, gold rates were down to near the lowest level in four weeks amid a stronger US dollar. “Some market players also noted the dollar could rise by default as other major currencies appear to be losing momentum.
Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. The dollar was little changed against a basket of major currencies, after hitting a one-month high in the previous session. “Turkey would likely suffer disproportionately given its reliance on strong risk sentiment from international investors.” A stronger dollar would also add further pressure to the Turkish lira.
less Gold prices extended lower during Wednesday’s APAC session as the US Dollar and 10-year Treasury yield edged higher. less Gold prices fell for the fourth consecutive session on Monday as the U.S. dollar continues to strengthen. “Today’s currency market suggests there is strong potential pressure to lift the dollar, should there be some sort of surprises from the Fed.

Metals

The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions. Gold prices are trading up by 0.1% at Rs 48,492 per 10 grams. Gold prices are trading up by 0.3% at Rs 48,539 per 10 grams. On the flip side, if the Fed remains dovish and hints at a further delay in the debate, gold prices may embrace a relief rebound. Despite the drop, the gold prices remained within Monday’s trading range.
Technically, gold prices breached below an “Ascending Channel” formed since early April and have since entered a technical correction. less Gold price (XAU/USD) fell for the third day in a row on Tuesday and tested the $1850 psychological support before recovering slightly to near the $1860 region. Ilya Spivak, a currency strategist at DailyFX, noted that the recent decline in gold prices reflects the Feds’ anticipated tapering of quantitative easing. Amid pre-Fed caution trading, gold is likely to keep its downside consolidative mode intact, although a brief rebound cannot be ruled amid repositioning.
Gold futures on MCX were up 0.1% to Rs 48,476 per 10 grams and hovered near one-month lows.

Oil

I have over 40 years experience working in oil and gas accounting with privately held oil and gas producing companies. A recovery in demand from the pandemic and a drop in U.S. crude inventories supported oil prices. US gasoline stocks was further up by 7.04 million bbl in the week ending Jun 11 to a fourteen-week high of 241.02 million bbl the EIA said. Sectoral indices are trading mixed with stocks in the oil & gas sector and FMCG sector witnessing buying interest.
If we think back to last year, oil demand was extremely low, making the current percentage rise temporary. As per recent Reuters poll gasoline stock is expected to drop by 600,000 bbl last week. Pledges More Money for Poorer States to Cut Emissions Kerry also pushed major oil and gas producers to adopt cleaner energy policies. Metals, Realty and financials dragged.Also read: Asian markets on edge, oil hits highsNifty Metal recorded the highest losses and was down 2.09 per cent. A recent rise in the cost of oil past $70 a barrel is also likely to boost inflation in Turkey.
Drop in COVID cases in India one of the biggest gasoline consumer in Asia has led to lifting of lockdown restriction which should increase demand from the country.

United States

Bullion lost more than 2% of its value since last Thursday, as expectations were built surrounding the Fed’s timeline to scale back asset purchases in the two-day FOMC meeting. Patchy US labor market recovery could likely challenge Fed’s tapering expectations. the Fed focuses on financial market fortunes the most.On #EconTwitterExamining U.S. inflation expectations by age group.Read more reactions on TwitterSave the DateWatch the future unfold. “The real question is does inflation become a bigger worry or a smaller worry,” said Jonathan Woloshin, head of U.S. real estate at UBS Global Wealth Management.
Markets quietGlobal equities are relatively calm as investors wait for today s Fed decision and press conference. Singapore 92 RON crack eased on back of stock build in the US last week and on back of bearish cues from US RBOB crack. Traders remained cautious as they awaited the outcome of the US Federal Reserve meeting for hints on tapering of economic support measures.
Therefore, inflationary pressures may be seen in the months to come and may strengthen the case of tapering the Fed stimulus. Brexit jitters and the delay of lifting final lockdown restrictions undermined demand Attention now turns to the Fed’s monetary policy announcement. Indeed, Republican senators have successfully defeated an attempt to learn more about what happened on Jan. 6, presumably because it would make Trump and his supporters look bad.

China

Beijing’s move came after Chinese officials in recent weeks repeatedly said industrial metals’ red-hot rally this year has gone too far.

Europe

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