(01 September 2020)DAILY MARKET BRIEF 2:The Japanese yen is also in the spotlight
In the commodity market, gold is surging amid a weakening US dollar. The metal is now up 0.81% to $1,994.55. The American currency has declined to its lowest level in years against majors after Fed Vice Chairman Richard Clarida confirmed the Fed’s policy move towards inflation, which was previously announced by Fed Chain Jerome Powell. The central bank is planning to maintain the interest rates close to zero for a longer period, prompting investors to dump the US dollar. Gold is also leveraging the rising tensions between China and the US and also Australia.
Oil prices have also benefited from the weaker US dollar, recovering Monday losses. Brent and WTI have gained about 1% each. Still, there is much uncertainty in the energy market, as economists anticipate a second wave of the pandemic.
In FX, EUR/USD is up 0.46% to 1.1991, as the greenback is tumbling to the lowest level in two years.
The Japanese yen is also in the spotlight, as investors bet on who will become the new Prime Minister after Shinzo Abe’s sudden resignation. USD/JPY is down 0.23% right now.
Elsewhere, the pound has gained 0.34% against the US dollar.
