(15 September 2020)DAILY MARKET BRIEF 2:Multibillion-Dollar Deals
In the commodity market, oil prices continue to move sideways but with a bearish tone. Investors are concerned about a slow recovery in fuel demand amid the coronavirus crisis. Monday’s minor gains driven by the news of another storm in the US Gulf Coast, which affects oil producers in the region, have faded on fears of oversupply. At the time of writing, WTI shows no direction, while Brent is down 0.13%.
OPEC said in a report that it expects global oil demand to decline by 9.46 million barrels per day (bpd) in 2020, more than the 9.06 million bpd drop anticipated a month ago.
Gold is up on Tuesday as the US dollar is experiencing the worst performance in about two weeks. The metal is increasing in price amid the surge in the number of coronavirus cases. Gold futures were up 0.60% to $1,975.73, which is the highest in 12 days. The price action is now breaking above the upper line of a descending triangle that formed at the beginning of August, which suggests a bullish signal.
The US dollar has declined amid the stock market rebound and ahead of the Fed’s last meeting before the US election. EUR/USD is up 0.25% to 1.1898.
Elsewhere, the pound continues to decline on Brexit talks pessimism, as Johnson seeks to override parts of the current treaty and thus break international law, a move criticized by European leaders and even members of his own party. Still, the pound is managing to increase in pair with the greenback but is down 0.01% against the euro.
