The euro barely reacted to the disappointing Ifo business climate index on Monday. The common currency remained just above the $ 1.18 mark in the afternoon, 0.3% higher than last Friday. The Japanese yen, considered relatively safe, benefited from investors’ low risk appetite. Given the rampant delta variant of the corona virus, uncertainty in financial markets has recently increased.
In return, some investors have turned to Bunds. This temporarily lowered the yield on ten-year German government bonds to minus 0.449%.
Meanwhile, the pound sterling has appreciated against the dollar and the euro. Over the weekend, data had shown a drop in Covid-19 cases in the UK. However, experts have warned that the full impact of the reopening of the economy on infection rates remains to be seen. The pound has outperformed most of the major currencies in recent weeks. The British currency was supported by Britain’s high vaccination rate at a time when the Delta variant was causing an increase in cases around the world.
An impending supply bottleneck has pushed up the price of copper in the commodities market. The important industrial metal rose 2.7% to $ 9,765 per tonne. The trigger for speculation is the flooding of the industrial metropolis of Zhengzhou in Henan province.
Crude oil, on the other hand, has become cheaper. A barrel of North Sea Brent cost $ 73.80, 0.4% less. Market watchers have highlighted growing concerns over new measures to contain the pandemic as the more contagious Delta variant is causing an increasing number of infections. In this context, there are fears of a drop in fuel demand, which will put pressure on oil prices.