In the commodity market, gold prices are flat after a bearish start. Gold futures are trading at around $1,808, as investors weigh the possibility of more stimulus. Besides the US, European leaders are also negotiating a potential plan to support the bloc’s economy. However, the demand for the safe-haven might increase as some European diplomats are thinking to delay further talks to next month.
Elsewhere, oil prices declined on the back of a rapid increase in the pace of COVID infections around the world. Both WTI and Brent futures are down about 0.70%, to $40.52 and $42.89, respectively.
Today, more than 14.6 million people have been confirmed positive with the new coronavirus, and more than 608,000 have died of the disease caused by the virus.
Demand for oil is far from pre-COVID levels, even though it has managed to recover from a 30% decline in April. US demand for gasoline continues to decline. Japan's oil imports dropped 14.7% in June compared to the same month in 2019.
In FX, the US dollar is slightly up in early trading on Monday, as investors are waiting for the US Congress debate over new stimulus measures. Nevertheless, Republicans and Democrats are not on the same line already. Trump’s party wants to cap the cost of the bill at $1 trillion while the Democrats are eyeing about $3 trillion. The greenback is also benefiting from its safe-haven status amid the increase in COVID numbers. The USD Index is up 0.04% to 95.927.
Despite a strong US dollar, the euro is beating it so far, as investors hope that European leaders would reach some consensus later this week. EUR/USD is up 0.20% to 1.1448, close to the highest level in four months. The bloc countries will debate over a 750 billion euro recovery fund.
The sterling is down against both the USD and euro, as Britain reported some downbeat economic data last week. Also, the post-Brexit uncertainty persists.
