In the commodity market, oil prices are extending gains as investors anticipate a recovery in crude demand thanks to the implementation of the COVID vaccines in the near future. Still, the renewed restrictions in several countries are forcing stronger resistance levels on crude prices. Investor sentiment is also lifted by hopes that the OPEC+ countries would maintain production cuts after January. WTI and Brent are up about 0.70% to trade at the highest level in three months. Last week, both brands rose about 5%.
Gold is trading sideways, finding support near $1,870. The metal is currently up 0.07%. On Friday, Gold rose after Mnuchin proposed stimulus negotiations to continue. Still, he halted some funding from the Fed.
In FX, the US dollar cannot escape from the lowest levels since May 2018. The USD Index is down 0.16% to 92.243, and EUR/USD is up 18% to 1.1875. Investors are dumping the greenback on expectations that the new COVID vaccines would boost risk demand.
The British pound is now surging against both majors after UK finance minister Rishi Sunak said yesterday that a Brexit deal was still possible, though not at any price. UK PM Boris Johnson is expected to talk later this week to European Commission President Ursula regarding Brexit.
