In the commodity market, oil prices are recovering after losing over 3% at the start of the week. Still, the selling pressure is high as supplies resume in Norway, Libya, and the US Gulf Coast after Hurricane Delta weakened. Meanwhile, the International Energy Agency predicted a 5% drop in global energy demand this year. WTI and Brent have gained about 0.90% so far, trading near $40 and $42, respectively. OPEC member Libya had lifted its force majeure embargo in the Sharara field on Sunday, with the field expected to produce about 300,000 barrels per day. This will double the country’s output and will add 0.3% to the current global crude supply.
Gold has declined amid stronger greenback and as investors focus on the stock rally. Gold futures are down 0.33% at $1,922.
In FX, the US dollar rebounded from three-week lows, as investors are pricing in Biden’s victory. Also, market participants are buying the USD against riskier counterparts, especially after the Chinese government seems to halt the Yuan rally. The USD Index is up 0.06% to 93.168. EUR/USD is down 0.15% to 1.1795. The European currency is bearish on the disappointing news that J&J’s vaccine study was halted. Meanwhile, Europe reported a record daily number of new COVID cases at the end of last week.
AUD fell over 0.30% against the greenback after China halted coal imports from Australia.
The British pound is down 0.7% against the USD but up the same figure against the euro. The UK unemployment rate rose more than expected in August, from July’s 4.1% to 4.5%.
