(03 December 2020)DAILY MARKET BRIEF 2:US dollar continues to decline
In the commodity market, oil prices are declining amid a wobbling week. The WTI is down 0.42%, and Brent lost over 0.30%. OPEC+ is resuming talks regarding a potential extension of the crude production cuts after the current deadline of January 2021. Some members question further cuts as they argue that prices have been pushed up by the vaccine news.
Gold continues to recover, despite the optimism surrounding the COVID vaccine. The metal is up 0.28% to $1,835.
In FX, the US dollar continues to decline on hopes for fresh stimulus and expectations that the vaccine developed by Pfizer would speed up economic recovery. The USD Index broke below 91.00 for the first time since April 2018. EUR/USD is up 0.03% to 1.2119.
The pound is gaining traction versus both the US dollar and the euro, as the UK became the first developed country to approve a COVID vaccine. Previously, the sterling was under increased pressure on the back of mixed signals about Brexit talks, which entered their decisive week.
