Trading-Forex

(11 December 2020)DAILY MARKET BRIEF 2: Oil Breaks Above $50

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In the commodity market, crude prices extend gains after surging on Thursday above $50 for the first time since early March. Prices are boosted by vaccine optimism, as investors ignored data pointing to higher-than-expected crude supply in the US. WTI has increased by 0.50% and Brent has gained 0.22%. Both brands surged about 3% on Thursday. Oil prices are set to secure gains for the sixth consecutive week.

Gold is also bullish amid disappointing US labor market data and stimulus talks uncertainty. The metal has increased by 0.12% to $1,839.

In FX, the US dollar continues to lose strength as investors await economic recovery fueled by vaccinations. The USD Index is down 0.20% to 90.640. EUR/USD is up 0.19% to 1.2159. The bloc’s currency turned bullish after the European Central Bank unveiled more stimulus to support the economy.

The pound is recovering after tumbling yesterday on UK PM Boris Johnson’s comments that a no-deal Brexit was very possible. The sterling is moving in tandem with the euro and is up against the US dollar.

The Australian dollar rose against the US currency to the highest level in 2 and a half years amid increasing demand for risk assets.

By Strategy Desk

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