(16 September 2020)DAILY MARKET BRIEF 2:the US dollar is steady
In the commodity market, oil suddenly updated the weekly peak after several sluggish sessions in a row. Both WTI and Brent have gained over 1.3%. The crude prices rose as Hurricane Sally reached the US Gulf Coast, causing the shutdown of over 25% of American offshore oil and gas production. Export ports were also closed in the region. Separately, the American Petroleum Institute said yesterday that US crude inventories dropped by 9.5 million barrels last week, while analysts expected an increase by 1.3 million barrels. Still, gasoline inventories increased. All in all, the longer-term picture isn’t bright for oil, as demand is hit by the coronavirus crisis.
Gold fluctuates between green and red ahead of the Fed meeting. The price of the metal hovers around $1,965.
In FX, the US dollar is steady ahead of the Fed meeting. EUR/USD is up 0.01%, while the USD Index is up 0.03%. Still, bulls have no chance to propel an eventual rally given that the central bank will likely maintain its supportive stance.
The British pound shows no change in pair with the euro and is up 0.04% against the US dollar. The UK just released better-than-expected inflation data. Meanwhile, Britain has reportedly proposed some concessions on fisheries, which is a sensitive topic in the post-Brexit trade negotiations with the EU. However, the crisis between the two is too severe as the UK intends to override parts of the current treaty, so it remains to be seen whether Europe would consider such concessions.
