Market Information Tuesday 8 September 2020

The British pound has dropped in value significantly following statements by British Prime Minister Boris Johnson about the still existing option of a no-deal Brexit. The British Prime Minister stated that the UK is willing to stop trade talks with the EU if necessary. The pound depreciated by nearly 1% against the dollar on Monday afternoon. This is the largest decline in the pound since June this year. Experts believe that the pound could lose a lot of value in the coming period.

The Japanese economy contracted more in the second quarter of this year than predicted. This according to the published figures of the Japanese government. The impact of the corona crisis shows that the upcoming Japanese head of government faces a major challenge to prevent a deeper recession. Japan’s gross domestic product fell by 28.1% instead of the 27.8% taken into account.

Saudi Arabia is lowering its prices for crude oil deliveries to Asia and the United States. Oil prices dropped again on Monday, after the drop on Friday. Deliveries are scheduled for October. It is the first time in six months that Saudi Arabia is lowering its selling prices for the US. The Saudi move may indicate that oil demand is recovering less from the effects of the corona crisis than previously expected. The price of a barrel of American oil recorded a decrease of 1.4% at USD 39.23 on Monday afternoon.

The 6M Euribor increased with 1 basis point to -0.45% compared to previous business day. The 10Y Swap is unchanged at -0.19% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.