(08 September 2020)DAILY MARKET BRIEF 2:EUR/USD was flashing red

In the commodity market, oil prices continue to decline to update their lowest levels since the beginning of July. Prices are responding to increased worries that the potential increase in coronavirus cases could further damage demand for crude. Besides this, the US Labor Day marked the end of the summer driving season in the US.

WTI has tumbled 1.89% to $39.02, while Brent is more stable, falling 0.17% to $41.95.

Yesterday, crude prices intensified their bearishness after Saudi Arabia cut October prices for the Asian markets.

Meanwhile, gold futures are moving sideways, though the metal is now up 0.41% thanks to a leap a few minutes ago. The safe-haven might try to reverse its longer-term downtrend as the US reported increasing new cases of coronavirus in 22 states.

In FX, the US dollar is steady on Tuesday. EUR/USD was flashing red but has recovered losses and is up 0.06% thanks to the latest move. The attention will be focused on the European Central Bank’s Thursday meeting. While most analysts don’t expect the central bank to change its policy, it still might express concerns over a strong euro, which would put pressure on the bloc’s currency that has rallied since May.

The pound continues to decline against majors, as the British government is thinking to override the existing Brexit withdrawal agreement with the EU and make some changes to “extremely specific areas” in the bill. European leaders warned that there would be no deal if the UK decided to pass over the existing agreement. Another round of negotiations will start later today in London. UK Prime Minister Boris Johnson said that Britain wasn’t afraid of a no-deal Brexit at all. If that happens, the UK would just move on, the PM said.