(02 November 2020)DAILY MARKET BRIEF 2:The British pound has dropped

In the commodity market, oil prices slumped to the lowest level since the end of May, as European countries like the UK and Italy are introducing stricter lockdowns amid surging COVID infections. WTI is down 4% to $34.36, and Brent has dropped by 3.58% to $36.55. Meanwhile, investors are waiting for a chaotic presidential election week in the US. Elsewhere, Libya’s crude production is increasing toward 1 million barrels per day, after a truce in the civil war made it possible for the national oil producer to return to previous figures. Mustafa Sanalla, chairman of the National Oil Corp said in the weekend that daily output had reached 800,000 barrels and the country was aiming for 1.3 million by the beginning of next year.
Gold is up slightly even amid a strong US dollar, as investors’ appetite for safe havens increased amid further lockdowns in Europe and ahead of the US election. The metal is now up 0.24% to $1,884.
In FX, the US dollar is cautiously uptrending, as it acts as a hedge amid Europe’s lockdowns. Still, the rally is capped by the uncertainty before Election Day. The USD Index is up 0.14% to 94.168. Last week, the greenback saw the largest weekly gain since the end of September. EUR/USD is down 0.10% to 1.1635.
The British pound has dropped over 0.30% against the US dollar and is down versus the euro as well. The sterling is under pressure amid pessimism surrounding the lockdown. Investors ignored the positive Brexit news, as negotiators are closer to a trade deal than ever.