(30 October 2020)DAILY MARKET BRIEF 21:European countries reimposed lockdowns.
In the commodity market, oil prices are down about 1% after failing to continue recovery. Both WTI and Brent crude brands are set to end their worst month since March, as the more aggressive pandemic is damaging global demand. Also, the OPEC+ member countries are expected to increase output by 2 million barrels starting from January 2021. WTI is now trading below $36 – at the lowest since mid-June, and Brent is fluctuating below $38, hovering above the lowest level since the end of May.
Gold price is recovering slightly after tumbling over 2% during the last two sessions. The metal rose on stimulus disappointment and a weaker dollar. However, it still trades below $1,870 after updating the monthly low.
In FX, the US dollar is losing momentum on Friday, after gaining over 1% during the last two sessions. The USD Index is now down 0.08% to 93.903, suggesting a flat month. EUR/USD is up 0.06%, but the pair had previously fallen to the lowest in four weeks after the European Central Bank maintained the interest rate but hinted it could further ease policy by the end of 2020, as many European countries reimposed lockdowns.
The British pound fell against both majors as the government is pondering a stricter lockdown amid surging COVID cases and deaths. Meanwhile, the UK and the EU continue their extended negotiations on a post-Brexit trade deal, but fisheries remains a major issue.
