Crude Oil rebounds slightly after breaking below $67 on Friday following weaker-than-expected US jobs data.
Markets see global demand deteriorate further, while the US Federal Reserve isn’t expected to cut interest rates aggressively.
The US Dollar Index trades above 101.50, extending recent gains.
Crude Oil rebounds slightly on Monday after dipping lower on Friday after the US Jobs Report showed that the US economy is cooling down but not on the edge of a recession, easing the chances of a chunky interest-rate cut by 50 basis points from the US Federal Reserve (Fed) in its upcoming meeting on September 18. This means that there will be no boost in US demand, while other big Oil consumers such as China and India are also experiencing softer economic activity.
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against a basket of currencies, is jumping for the second day in a row. The initial pop occurred on Friday on the back of the US Jobs Report. It looks like markets had clearly depreciated the Greenback too much in the assumption that the Fed would cut rates by 75 or even 100 basis points by November, which isn’t likely to be the case considering the recent healthy US economic data.
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