(14 October 2020)DAILY MARKET BRIEF 2:The British pound has dropped
In the commodity market, oil prices came back to their bearish stance after rebounding in early trading on Tuesday. Investors are worried that the rising COVID cases across the European continent and the US would affect economic growth and damage oil demand. Yesterday, OPEC said that oil demand in 2021 would increase by 6.54 million barrels per day to 96.84 million bpd, which is 80.000 less than the previous forecast. Both WTI and Brent have declined by about 0.55%.
Gold is leveraging its safe-haven status as stimulus talks show no progress while COVID vaccine and treatment trials are halted due to adverse reactions and safety concerns. The metal rose 0.20%, but it trades below $1,900 after slumping about 2% on Tuesday.
In FX, the USD is also benefiting from its safe-haven status as uncertainty is omnipresent. The USD index is up 0.02% to 93.562. EUR/USD is trading sideways at 1.1744, after declining for two consecutive sessions.
The British pound has dropped about 0.20% against both the USD and the euro amid Brexit talks pessimism and after the government introduced new restrictive measures to curb the second wave of COVID.
