In the commodity market, oil prices have edged up slightly, recovering the losses incurred yesterday, as the third storm in about a month is losing strength in the US Gulf Coast. Still, concerns over slow oil demand recovery persist and become even more relevant amid potential fresh lockdowns. Currently, both Brent and WTI are showing no direction but may likely decline for the day given the focus on the increasing number of new COVID cases and the introduction of stricter measures. Still, the American Petroleum Institute’s report on US oil inventories due later today will be a decider.
Gold is up over 0.35% amid worries about lockdown measures. However, the metal slumped over 3% yesterday, falling below $1,900 for the first time since July. Now gold is trading above $1,915. Investors shifted their focus from gold and silver to the US dollar, which rallied yesterday. The precious metal doesn’t seem to be the single favorite refuge right now, as the pandemic is getting worse.
In FX, the US dollar continues the bullish stance, after its index gained 0.80% on Monday. At the time of writing, the USD index is up 0.04% to 93.722. EUR/USD is down 0.22% to 1.1745, which is the lowest since mid-August. The euro has declined on fears of a second wave of the pandemic that is hitting Europe in the first place. The speech of Fed chief Jerome Powell hasn’t had an impact on the greenback’s moves. He will testify before the House Select Subcommittee tomorrow to discuss the central bank’s response to the virus.
The British pound has declined both against the USD and the euro as the UK is pondering another national lockdown and amid the post-Brexit crisis with the EU.
