In the commodity market, oil prices are increasing to save the week, as OPEC+ members agreed to continue the production cuts to deal with a drastic decrease in demand amid a global coronavirus crisis. Still, the compromise didn’t reach expectations, as OPEC, led by Saudi Arabia, and Russia agreed to ease the record production cuts by 500,000 barrels per day but failed to agree on a broader policy for the rest of 2021. Thus, OPEC+ will meet every month to review the figure. All in all, oil prices are poised to become more volatile next year. At the moment, WTI is up 1.30%, and Brent has gained 1.56%. Both brands are set to end the week higher, though way lower than weekly highs.
Gold continues to recover, as investors welcomed the cautious stimulus optimism. The metal is now up 0.22% to $1,845.
In FX, the US dollar extended losses amid stimulus hopes. The USD Index is down 0.10% to 90.618. It fell below 91.000 for the first time since April 2018. EUR/USD is up 0.13% to 1.215. A Reuters poll showed that the bearishness in the US dollar would likely last another six months amid increased appetite for risk assets.
The pound has secured gains against both majors as the UK and the EU have reportedly reached a compromise on fisheries.
By Strategy Desk
