(07 September 2020)DAILY MARKET BRIEF 2:Oil Tumbles to July Levels
In the commodity market, gold is slightly increasing amid mixed import and export data from China. Also, despite the positive nonfarm payrolls report, the US economic data was mixed last week, prompting fears that the recovery might not be as sustainable as expected. The metal is now up 0.12%, to $1,936.55.
Oil prices are tumbling to the lowest since the beginning of July as Saudi Arabia made major price cuts for crude supply to Asia. Meanwhile, optimism about a recovery in oil demand is fading. WTI is down 1.89% to about $39, and Brent has declined by 1.55% to $42.
In FX, the US dollar has recovered some previous losses thanks to the US nonfarm payrolls report. The massive decline in oil prices is also benefiting the greenback, whose bullishness is capped by the US stock market slump. The USD Index is up 0.27%, while EUR/USD is down 0.08% to 1.1827.
The pound is declining amid post-Brexit pessimism, as the UK and the EU still cannot reach consensus for a trade deal ahead of the last round of negotiations set for October. GBP/USD is down 0.57%.
