![(12 October 2020)DAILY MARKET BRIEF 2:US dollar is increasing slightly (12 October 2020)DAILY MARKET BRIEF 2:US dollar is increasing slightly](https://c.mql5.com/6/875/splash-740380.png)
(12 October 2020)DAILY MARKET BRIEF 2:US dollar is increasing slightly
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In the commodity market, oil prices continue to retreat from their one-month highs, as US producers are restarting production after Hurricane Delta faded. Elsewhere, the major strike in Norway, which affected production, came to an end. Both WTI and Brent have lost about 1%. On larger timeframes, crude prices are still moving within a horizontal channel near the $40 mark.
Gold is extending gains amid the stimulus uncertainty. The metal has increased by 0.40% to $1,933 per ounce, near the highest level since September 21. Even though stimulus talks are at an impasse right now, investors are pricing in the victory of Joe Biden, who is leading in the polls in the final weeks of the race. The argument for Biden is even more evident considering that a large number of initially unsolicited votes, mostly favoring the Democrat candidate, would take part in the election – the estimates range between 40 and 80 million additional votes. Should Biden win, a huge stimulus package is likely to be approved.
Besides this, Biden would pay special attention to support renewable energy trends in an effort to curb climate change. His project includes up to $2 trillion in funds to be allocated by 2050 to infrastructure and general zero-emission trends. This might boost utilities and industrials, especially companies operating in the renewable energy sector, including Siemens Gamesa, Avangrid, and Ormat Technologies.
In FX, the US dollar is increasing slightly as stimulus talks falter, but it’s still close to one-month lows. The USD Index has gained 0.03% to 93.102. EUR/USD fell 0.09% to 1.1813. The euro is under pressure amid Europe’s second wave of the pandemic. Meanwhile, the pound holds gains as the Times reported that Britain and the EU had agreed to pursue ‘mini-deals’ in the case trade negotiations fail and end up with a no-deal divorce.