Market Brief, Monday, 7th of September, 2020
On Friday, the US dollar held its ground among its counterparts with a string of better than expected Jobs data. With positive signs across the board, the most significant was the unexpected rise in average hourly earning giving additional value to job creation and unemployment rates.
The pound remains buoyant further to FEDs dovish approach to Inflation. Potential Hazards are likely to be recent developments from spikes in COVID- 19, Ongoing Brexit negotiations, and the government’s response to the current furlough scheme which ends in October. Any future political decisions are likely to have an impact.
EUR/USD keeps its range trade intact below mid-1.1800 despite the German Industrial Production disappointment. The Euro is still in the overbought territory due to ongoing global uncertainty and an ongoing Euro exchange is not a concern for any imminent changes in Monetary policy. A slight pullback back may be seen this week as traders anticipate the minutes from this week's ECB meeting and any comments on quantitative easing.
WTI witnesses fresh selling while flashing $39.35 as a quote during the pre-European trading on Monday. The energy benchmark earlier dropped to $38.80 before recovering to $39.78.
And finally gold trades in waiting with prices slightly lower as the markets await political decisions on global stimulus and political out outcomes.
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