Strong dollar, falls in stock markets and rising oil prices

The rate of the main currency pair EUR / USD seems to have been steadily declining over the past few days to be below $ 1,1600 per EUR as a result. The strength of the dollar can also be seen through the prism of its index, which was at its highest level in almost a year.

It seems that the recent appreciation of the USD is related to the expectations of the Federal Reserve it will cut its asset purchase program from November and start interest rate hikes next year.

Dollar rate up

The rising bond yields may also have contributed to the strengthening of the US currency. According recent data the US economy grew in the second quarter at a pace of 6,7%, which is slightly above the earlier estimate of 6,6%.

Meanwhile, there are further signs that the economic recovery in China is slowing down. Evergrande Troubles point to structural problems in the real estate sector, while the manufacturing sector remains under pressure due to delta outbreaks, higher material costs, production bottlenecks and, more recently, electricity rationing. All of this can also lead capital to USD as a potential safe haven.

Oil bought at any cost

Futures contracts for WTI oil was around $ 75 a barrel on Friday. They were near a three-year high of $ 76,67 and on track for their sixth consecutive week of gains. This may be due to the fact that Beijing has ordered Chinese state-owned energy companies to secure supplies for the coming winter season at any cost.

US light oil rose by 9% in September, the most since June because OPEC predicts that demand will exceed supply by 1,2 million barrels per day in October and by 0,9 million barrels in November.

Investors are now focused on next week's OPEC + meeting, and markets expect major producers to keep their pact to increase production by 400. barrels per day in November.

September is the worst month on Wall Street since March 2020

On the last trading day of the third quarter, Down Jones fell by over 500 points, S&P lost more than 1% and Nasdaq 0,4%. Wall Street stock prices appear to have suffered from inflation and supply chain problems in September, and the S&P 500 fell by more than 4%, the most since March 2020. Both the Dow Jones and Nasdaq recorded their worst month this year . In the third quarter, S&P and Nasdaq posted modest gains, while Dow Jones posted negative returns.