(28 September 2020)DAILY MARKET BRIEF 2:Commodities Point Downwards

In the commodity market, oil prices gave up their recovery attempts and continue to decline. Both WTI and Brent are set to post the first monthly decline since April-May. Investors are worried that the rapid increase in coronavirus infections will hurt recovery in demand. Currently, both brands are down over 0.90%.

In the US, the coronavirus finds new victims in Southern states and other regions, causing fears of mobility restrictions and a decline in crude demand. Besides this, investors are worried about an oversupply, as Libyan has restarted oil exports.

Gold has declined in early trading on Monday, as investors focused on strong equities. The metal will decide the next move later this week when the Democrats’ $2.4 trillion stimulus bill is put to the vote. The debate between Trump and Biden will have a major impact on gold, which has lost 0.33% today and trades at around $1,860.

In FX, the dollar has retreated from its two-month highs, as investors are worried that the US economic recovery is losing steam. The USD Index is down 0.12% to 94.567. Still, the euro isn’t performing any better right now, moving in tandem with the greenback. The European Central Bank officials are currently debating whether further stimulus is needed amid weakening recovery and an increase in COVID infections.

The British pound has gained over 0.20% against both the USD and the euro amid cautious Brexit optimism, as another round of trade talks between the UK and the bloc will start later this week.

By Strategy Desk