Global rally is on ahead of earnings reports - 13.7.2020

The Dollar weakening is persisting currently. 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, slipped 0.1% Friday as producer prices index declined 0.2% over the month in June when an increase was expected. Both GBP/USD and EUR/USD reversed their sliding Friday as industrial production recovery accelerated both in France and Italy in June. Both pairs are up currently. USD/JPY and AUD/USD continued retreating on Friday with both pairs lower currently.

US equity markets are sharply higher today ahead of second quarter earnings reports. Pepsico will be the first SP500 large capital company slated to report earnings today with analysts expecting the company to report falling revenues due to the negative impact of coronavirus outbreak on social events. The three main US stock indexes recorded back to back weekly gains ranging from 1% to 4% last week. European stock indexes are extending gains currently after ending higher on Friday with data showing industrial production recovery accelerated both in France and Italy in June. Asian indexes are all rising today led by Nikkei .

Brent is extending losses today as traders anticipate the relaunch of the Messla oil field and Sarir refinery in Libya that didn’t operate since January due to civil unrest in the country. Oil prices ended lower last session despite the upgrade of the global crude demand to 92.1 million barrels per day by IEA, up 400,000 barrels a day from its outlook last month. The US oil benchmark West Texas Intermediate (WTI) futures are lower currently. September Brent crude lost 2.1% to $43.24 a barrel on Friday.