Conciliation of US and China lowers protective asset prices
Protective assets lost value when the United States and China took new steps toward reconciliation: China lifted duties on certain types of goods, and the United States postponed tariff increases for 2 weeks. This sparked enthusiasm in financial markets, after which prices for defensive assets fell. On Thursday, September 12, an event of the week is expected – the European Central Bank will talk about a program to combat the recession of the global economy.
From 14:45 (GMT+3) the ECB will report on the credit rate, monetary policy, and interest rate this month. If the Central Bank decides to introduce a quantitative easing program, this could bring down the euro (EUR) in the long run.
15:30 (GMT+3) The United States will publish the basic consumer price index (CPI) for August. The estimated rate is 0.2% in August.
Oil. Oil rose this week, but declines on Thursday. On the morning of September 12, WTI crude oil is $55.9. Brent futures are trading near $60.9.
Gold. Gold firstly fell on Wednesday but is recovering on Thursday. In the morning, the precious metal strengthens by 0.4% and trades at around $1,503.
Currency. On Thursday, the DXY dollar index remained almost unchanged. In the morning, DXY is 98.5 against the basket of major currencies.
On the morning of September 12, the dollar is slightly lower against the yen. In the morning, the pair USD/JPY is trading at 107.8.
The euro (EUR) is still under pressure due to a slowdown in the economies of the eurozone. In the morning, the EUR/USD pair is trading near 1.1022.
On Tuesday, the Pound (GBP) was rising after the British parliament passed a law according to which a country cannot leave the EU on October 31 without a deal. The confrontation between Prime Minister Boris Johnson and parliament continues. On the morning of September 12, the GBP/USD pair is falling and trading around 1.2331.
Cryptocurrency. Bitcoin (BTC) drops Thursday at -0.5% and is trading at $10,106. In the morning, Ethereum (ETH) drops by -0.6% and is trading near $177.3. The Litecoin (LTC) exchange rate on September 12 is $68.7.
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