Global markets retracing higher after rebound halted - 11.9.2020

The Dollar strengthening has halted currently ahead of the US inflation report at 16:30 CET today. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, added 0.1% Thursday despite Labor Department report above expected 884 thousand Americans filed for first-time benefits. At the same time continuing claims increased to 29.6 million. GBP/USD continued sliding yesterday with EUR/USD reversing its sliding after the European Central Bank left its policy unchanged at minus 0.5% and its refinancing rate at 0% and Christine Lagarde said the ECB’s governing council discussed the euro appreciation but it doesn’t “target the exchange rate.” Both Pound and euro are higher against the Dollar currently. Both AUD/USD and USD/JPY reversed their climbing yesterday with the dynamics reversed for both pairs currently.

Futures on three main US stock indexes are rising currently after slumping Thursday. The three main US stock benchmarks recorded losses ranging from 1.5% to 2.0% in a volatile session. European stock indexes are rebounding today after ending lower Thursday despite an upgrade by the ECB of the eurozone economy outlook for this year, now estimating a contraction of 8% versus its previous estimate of an 8.7% drop. Asian indexes are mixed currently with Australia’s All Ordinaries ASX 200 Index leading losses.

Brent is extending losses today. Oil prices fell yesterday after the US Energy Information Administration report that US crude oil inventories rose by 2 million barrels last week, the first weekly rise in seven weeks while gasoline inventories declined by 3 million barrels. The US oil benchmark West Texas Intermediate (WTI) futures ended lower yesterday: October WTI fell 2% and is lower currently. November Brent crude closed 1.8% lower at $40.06 a barrel on Thursday.