Rally continues as investors await US lawmakers decision - 6.8.2020

The Dollar weakening persists currently ahead of US Labor Department report expected to show 1.41 million Americans likely sought unemployment benefits over the last week. 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, lost 0.5% Wednesday as payroll provider ADP reported only 167,000 private sector jobs were created in July, a fraction of the expected gain of 1.2 million jobs though the ISM service sector purchasing managers index jumped to above-expected reading of 58.1 in July. GBP/USD joined EUR/USD’s and continued climbing yesterday with both pairs higher currently. AUD/USD continued climbing yesterday while USD/JPY’s sliding persisted with both Australian dollar lower against the greenback currently while yen’s dynamics remains intact.

Futures on three main US stock indexes are solidly higher currently after a bullish session on Wednesday. Earnings season continues with Merck, T-Mobile and Consolidated Edison reporting quarterly results today. Stock indexes in US ended higher after better than expected corporate earnings reports with SP 500 companies on track to report just roughly 34% drop in earnings per share from a year earlier: the three main US stock indexes recorded gains ranging from 0.5% to 1.4%. European stock indexes are extending gains currently after the Bank of England a held policy steady but predicted slower recovery from coronavirus setback. Asian indexes are mixed today with Nikkei leading losses amid largely downbeat earnings reports.

Brent is advancing today. Prices surged Wednesday after the US Energy Information Administration report that US crude oil inventories fell by 7.4 million barrels last week. However gasoline inventories rose unexpectedly by 419,000 barrels. The US oil benchmark West Texas Intermediate (WTI) futures advanced: September WTI gained 1.2% and is higher currently. October Brent crude closed 1.7% higher at $45.17 a barrel on Wednesday.