Discussing the CNY-Crude with Alasdair Macleod

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With the yuan-denominated crude oil contract ready to begin trading on March 26, we thought we'd check in today with an expert on the significance of this, our pal Alasdair Macleod of GoldMoney.

For this call, I simply asked Alasdair to lay out the short-term and long-term significance of pricing crude oil in something other than U.S. dollars. This new contract not only disrupts the crude oil market, it also impacts gold, forex and geo-politics. So please be sure to listen to this entire podcast and then consider the future implications of this new CNY-Crude contract.

TF

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billhilly
Mar 15, 2018 - 11:26pm

from ZH...

Friday, March 16

  • 08:30 AM Housing starts, February (GS +0.5%, consensus, -2.7%, last +9.7%): We estimate housing starts slowed to a +0.5% rate in February after a 9.7% increase in January. We expect better weather and solid increase in construction jobs growth to lead to a further increase in housing starts.
  • 09:15 AM Industrial production, February (GS +0.5%, consensus +0.3%, last -0.1%); Manufacturing production, February (GS +0.5%, consensus +0.4%, last flat); Capacity utilization, February (GS 77.8%, consensus 77.7%, last 77.5%): We estimate industrial production rose +0.5% in February, as the utilities category likely rose further and manufacturing production increased, reflecting strength in auto manufacturing.
  • 10:00 AM University of Michigan consumer sentiment, March preliminary (GS 97.5, consensus 99.5, last 99.7): We estimate the University of Michigan consumer sentiment index edged down 2.2pt to 97.5 in the preliminary estimate for March. We note some downside risk to our forecast from the recent stock market decline. The report’s measure of 5- to 10-year inflation expectations remained at 2.5% in February, near the middle of its 12-month range.
SteveW
Mar 15, 2018 - 10:55pm

Precious metal plane drop

The cargo came from the Chukotka Mining and Geological Company, a 75% owned Kinross subsidiary mining two deposits. One at average grade 28 g/t Au, and 261 g/t Ag; with the other 5.3 g/t Au and 246.6 g/t Ag. Since the bars were concentrate being shipped for refining their silver plus gold composition would give them the look of silver.

https://www.mining.com/kinross-acquires-high-grade-gold-areas-in-russia-...

SteveW
Mar 15, 2018 - 10:36pm
abundance
Mar 15, 2018 - 10:28pm

from zh comment section

O/T I don't mean to be an asshole Tyler, but perhaps you should be paying attention to the massive unwinding of the short $usd hedge that's taking place.

The euro/dollar put hedge is completely breaking down, as we speak.

Normally I wouldn't see this downward pressure as a problem, but the Fed. is lifting rates on Tuesday, so dealers would probably want to be flushing out the weak $ longs, as opposed to adding to them?

FWIW, I'm flat F/X, other then my Macro trades until next week. When I woke up this morning and my eur/usd short just above 1.2380 wasn't tagged, I should have just gone to Disney Land.

nuggety
Mar 15, 2018 - 10:24pm

Russian Gold Spill

Maybe the Russians are sending a message

If the west keeps the pressure up they will spill the beans on GOLD!

silver10sguy
Mar 15, 2018 - 10:23pm

CNY-Crude with Alasdair Macleod

Thanks Turd for covering this topic in detail. It was helpful to gain a larger perspective. After decades of the PetroDollar this new paradigm is fascinating.

boomer sooner
Mar 15, 2018 - 10:12pm

Get interview

I always note Alasdair's views. Thanks

Canary, I was concerned you passed out on the enter button! Glad to see your alive.

Russian plane. Anyone notice one of the pics looked like a 1000 ounce silver bar.

pabste
Mar 15, 2018 - 10:09pm
pabste
Mar 15, 2018 - 9:41pm
StevenBHorse
Mar 15, 2018 - 9:40pm

Poll

Within MY lifetime? Yes

within the next few months? No

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