In the commodity market, oil prices are up on Monday, but larger timeframes point to a sideways move after the worst slump in months. Crude prices have recovered slightly as tropical Storm Sally is hitting the Gulf of Mexico and is expected to be a category 2 hurricane. Oil producers in the region are forced to shut down for the second time in a month after Hurricane Laura hit the region at the end of August. Nevertheless, fears of oversupply and weakening demand persist, meaning that the minor recovery might not be sustainable. WTI is up 0.46% to $37.50, and Brent has gained 0.20% to $39.91.
Gold is up during the Asian session as the US and global equities have declined for two consecutive weeks. Futures on the metal increased by 0.42% to $1,956.00.
In FX, the US dollar has declined, with the USD Index losing 0.13% to 93.213. EUR/USD shows no change from the opening right now. The greenback has lost some ground after the European Central Bank didn’t really meet the expectations of those who predicted a tough stance on the strong euro. The ECB only mentioned that it would monitor the bloc’s currency.
The pound and the Japanese yen continue to be in the spotlight amid increasing prospects of a no-deal Brexit and Japanese ruling party’s voting scheduled for later today.
