Market Brief, Tuesday, 11th of August, 2020
The greenback appreciated against most major rivals, with the EUR, AUD, and GOLD being its weakest rivals. In contrast, The Pound remained resilient, posting a modest intraday advance against its American rival. Dollar’s strength could be attributed to weekend news indicating that US President Donald Trump signed four executive orders on fiscal aid.
US benchmarks were mixed on Monday as the Dow jumped 1%, the S&P 500 inched up and the Nasdaq closed lower. Value stocks were bid up as investors took a step down from heavyweight tech-related names as there was still no progress on a US fiscal support bill.
Yi Gang, the governor of the People’s Bank of China confirmed that China will continue implementing the phase-one economic and trade agreement with the US while measures announced to open up China's financial sector will also continue.
Crude oil climbed nearly 1.50% in a bid to test the $42 mark on Monday, in the wake of the upbeat outlook painted by Saudi Aramco’s CEO Nasser and expectations that Iraq will cut output in August.
Finally, Bitcoin tested the $12,000 level again and had another flash crash, dropping $500 within seconds triggering bots to sell and longs to liquidate before quickly recovering and head again towards $12,000.
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