(20 November 2020)DAILY MARKET BRIEF 2:The Canadian dollar is moving in tandem
In the commodity market, oil prices are moving sideways and might end the week at Monday levels. The crude prices were under pressure amid surging COVID cases and downbeat labor market data released by the US. Also, investors are worried about a split within OPEC over the continuation of production cuts, as the United Arab Emirates (UAE) considers that no more cuts are needed. The situation is so serious that some reports suggest the UAE is ready to quit OPEC, which could lead to one of the largest crises in OPEC’s history. So far, WTI is down 0.33%, and Brent has lost 0.18%.
Gold is up on Friday after the US came with mixed stimulus news. The metal has added 0.30% to $1,866.
In FX, the US dollar continues to decline amid stimulus uncertainty. The USD Index is down 0.09% to 92.203, close to the lowest level since April 2018. The greenback lost ground amid vaccine hopes, after Pfizer and Moderna reported that their COVID vaccines had a success rate of about 95%. EUR/USD is up 0.11% to 1.187.
The Canadian dollar is moving in tandem with the greenback as governments worldwide impose new restrictions, which affects global trade.
The British pound is increasing against both the euro and the USD ahead of retail sales data for October.
