Agriculture
Soft wheat exports by sea to destinations outside the EU and Britain came to 821,000 tonnes in February, the eighth month of the 2020/21 season. Coffee futures closed sharply lower on ICE on Friday, with both arabica and robusta prices falling to the lowest levels in almost two weeks.
Currencies
Dollar index The dollar index had recently breached a key resistance level of 91 and continues to trade well above this level. FOREX: The U.S. dollar gained, climbing towards a 3-1/2-month high, as a broad rise in Treasury yields spooked investor sentiment in stock markets. The U.S. dollar gained, climbing towards a 3-1/2-month high, as a broad rise in Treasury yields spooked investor sentiment in stock markets. However, foreign fund inflows into the equity markets, along with corporate dollar flows could cap depreciation bias, the note added.
Trade strategy Although the dollar index is flat, the rupee is gaining bullish momentum despite a gap down open. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.07 per cent to 92.04. Another boost to growth prospects, yields, and the dollar came from the Senate, which approved a modified version of President Joe Biden’s coronavirus relief package.
The main downside driver for the pair has been the rise in US yields, which has been boosting the dollar. The Bloomberg Dollar Index bottomed January 6, the day after the vote.Less appreciated, perhaps, are the monetary implications of the Georgia vote. The stronger US Dollar is overshadowing upbeat covid numbers in the UK & the start of the economic reopening process (FXB, UUP).
Trade strategy Although the dollar index is flat, the rupee is gaining bullish momentum despite a gap down open. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.07 per cent to 92.04. Another boost to growth prospects, yields, and the dollar came from the Senate, which approved a modified version of President Joe Biden’s coronavirus relief package.
The main downside driver for the pair has been the rise in US yields, which has been boosting the dollar. The Bloomberg Dollar Index bottomed January 6, the day after the vote.Less appreciated, perhaps, are the monetary implications of the Georgia vote. The stronger US Dollar is overshadowing upbeat covid numbers in the UK & the start of the economic reopening process (FXB, UUP).
Metals
The news not only sent oil prices to a fresh 12-month high, but also boosted gold prices due to rising geopolitical uncertainties in the Persian Gulf area. Note that gold prices have fallen sharply this year, hurt by optimism over a robust economic recovery and a faster-than-anticipated rise in bond yields. Even with the recent volatility in prices, gold remains among the best-performing commodities this year to combat the fallout from the coronavirus pandemic.
less Gold prices bounced from a 9-month low and traded modestly higher during the APAC session on Monday after Senate Democrats passed the US$ 1.9 trillion Covid relief package. less Gold prices bounced back from a nine-month low after the divided U.S. Senate passed the $1.9 trillion COVID-relief bill on Saturday. Gold has long been perceived as a good store of value and inflation hedge, therefore its price may be a lifted by rising inflation outlook. The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions.
Real yields exhibit a historically negative correlation with gold prices, and their inverse relationship can be visualized in the graph below. Normally when you see these two moving averages start crossing back and forth it tells you gold is either building out a reversal pattern or a consolidation pattern. Gold prices are trading down by 0.2% at Rs 44,615 per 10 grams.
less Gold prices bounced from a 9-month low and traded modestly higher during the APAC session on Monday after Senate Democrats passed the US$ 1.9 trillion Covid relief package. less Gold prices bounced back from a nine-month low after the divided U.S. Senate passed the $1.9 trillion COVID-relief bill on Saturday. Gold has long been perceived as a good store of value and inflation hedge, therefore its price may be a lifted by rising inflation outlook. The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions.
Real yields exhibit a historically negative correlation with gold prices, and their inverse relationship can be visualized in the graph below. Normally when you see these two moving averages start crossing back and forth it tells you gold is either building out a reversal pattern or a consolidation pattern. Gold prices are trading down by 0.2% at Rs 44,615 per 10 grams.
Oil
Meanwhile, global crude oil benchmark Brent Futures rose 1.49 per cent to USD 70.73 per barrel. Brent crude futures, the global oil benchmark, rose 2 per cent to $70.75 per barrel. Shipment of crude oil in January and February is equivalent to 11.08 million barrels per day (bpd), according to data published on Sunday by the General Administration of Customs. The data exclude trader positions in the NYMEX financial crude oil futures contract, which is normally included in our aggregate calculations.
Stocks like the cyclicals, financials, and especially old-line oil and gas companies have had an impressive run as investors anticipate increased demand as a result of economic recovery. WTI crude oil hits 2 year high. In the coming months, the energy administration will provide specific targets for wind, solar, hydro, oil and coal power use over the next five years. According to Baker Hughes, the Oil Rig count in the US for last week gained by 1 to 310 , while Natural Gas rigs held steady at 92.
US crude production is slowly recovering from their recent impact following the deep freeze when their production levels dropped to 9.7 million bpd, the lowest levels since August 2020.
PTI MKJ DRR DRR As of March 7th: Oil price, monthly average of daily spot, $/bbl (blue), spot close on 3/5 (blue square), and futures price (red +).
Stocks like the cyclicals, financials, and especially old-line oil and gas companies have had an impressive run as investors anticipate increased demand as a result of economic recovery. WTI crude oil hits 2 year high. In the coming months, the energy administration will provide specific targets for wind, solar, hydro, oil and coal power use over the next five years. According to Baker Hughes, the Oil Rig count in the US for last week gained by 1 to 310 , while Natural Gas rigs held steady at 92.
US crude production is slowly recovering from their recent impact following the deep freeze when their production levels dropped to 9.7 million bpd, the lowest levels since August 2020.
PTI MKJ DRR DRR As of March 7th: Oil price, monthly average of daily spot, $/bbl (blue), spot close on 3/5 (blue square), and futures price (red +).
United States
It is too soon to say if the Fed is trying to influence the long end of the yield curve by increasing their purchases of notes and bonds. “Specs piled into shorts across the curve last week as the market became agitated on Fed tapering and early hiking risks,” Zhao wrote Friday. (see New Fed Chairman, Same Old Story) Currently, comments by Jerome Powell last week regarding inflation and its effects spooked some investors and analysts. The Fed is believed so powerful that their mere promise to buy bonds to cap yields would stop the selling by any and all other bond owners.
One thing that we’ve learned in the wake of the Great Financial Crisis is that the Fed doesn’t have much power to generate inflation or rapid growth. less Fed chair made it clear last week that things have not deteriorated enough for them to act. Investor worries also subsided after the rise in bond yields steadied and the US labour department reported stronger-than-expected jobs data for February.
In other words, Georgia, by opening up the door to this aggressive stimulus, basically engaged the Fed’s new framework. He has been quoted in a variety of financial news publications, such as CNBC, the Wall Street Journal, and the New York Post. GBP/USD is edging lower after the US Senate passed the $1.9 trillion stimulus package.
One thing that we’ve learned in the wake of the Great Financial Crisis is that the Fed doesn’t have much power to generate inflation or rapid growth. less Fed chair made it clear last week that things have not deteriorated enough for them to act. Investor worries also subsided after the rise in bond yields steadied and the US labour department reported stronger-than-expected jobs data for February.
In other words, Georgia, by opening up the door to this aggressive stimulus, basically engaged the Fed’s new framework. He has been quoted in a variety of financial news publications, such as CNBC, the Wall Street Journal, and the New York Post. GBP/USD is edging lower after the US Senate passed the $1.9 trillion stimulus package.
Europe
Why did the UK enter the pandemic with fewer doctors than any EU country except Poland and Romania? Economically, as politically, the country is neutral and remains independent from the European Union.
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