In the commodity market, oil prices are declining after the conclusion of a panel of OPEC+ ministers couldn’t reach consensus on whether to continue the production cuts after the deadline set for January 2021. The members left the matter to be discussed during a full meeting later today. A source told Reuters that the UAE and Kazakhstan don’t endorse the continuation of the production cuts. Both WTI and Brent have lost over 2.2% so far on Monday.
Gold is also bearish as investors hope that the vaccines produced by Pfizer with BioNTech, Moderna, and AstraZeneca would push the global economy. The metal is experiencing the worst month in four years. At the time of writing, gold futures are down 0.68% to $1,776, breaking below $1,800 for the first time since the end of June.
In FX, the US dollar continues to decline on similar fundamentals, as investors are departing from safe-havens. Also, markets expect the Fed to endorse further easing. Fed Chairman Jerome Powell will present his testimony before Congress tomorrow and on Wednesday. The USD Index is down 0.12% to 91.692. EUR/USD is up 0.07% to 1.1970.
The pound is surging against both majors on Brexit talks optimism.
By Strategy Desk
