Foreign exchange, commodities, bonds – dollars under pressure – economy

The dollar continued to weaken against the euro on Tuesday and fell to its lowest level in three weeks. In return, the euro gained to $ 1.1847. At the end of the session, however, the euro gave up most of its gains and settled at $ 1.1806. The reluctance of the US Federal Reserve to reduce its purchases of securities (tapering) puts the US currency under pressure. Investors are therefore eagerly awaiting US labor market data on Friday to receive more information on the extent and start of tapering. In the crude oil market, nervousness grew before the major exporting countries began to agree on production quotas. US WTI light crude fell 1% to $ 68.51 a barrel. According to insiders, the group of countries Opec + does not want to follow the US call for a stronger expansion of production and increase quotas to 400,000 barrels per day as planned. US President Joe Biden had campaigned for a significant increase in quotas to lower gasoline prices and thereby stimulate the global economy. In addition, fears of weakening demand from refineries due to power outages and flooding in the US state of Louisiana after Hurricane Ida put oil prices under pressure.

An indication of a possible reduction in pandemic aid from the European Central Bank (ECB) has not been well received by investors. Austrian National Bank President Robert Holzmann has called into question a cut in ECB aid in the event of a corona pandemic. As a result, investors split off from Bunds. As a result, the ten-year paper yield fell to minus 0.393 percent, the highest level in a month. The ECB is buying securities for a total amount of up to 1.85 trillion euros in order to cushion the negative consequences of the pandemic.

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