Dollar weakness drives up commodities

Heading into the close the FTSE 100 is 30 points higher, as a fall in the US dollar boosts commodity prices and gives miners a lift.

  • Equity markets look to make Wednesday a distant memory
  • Trump goes on his travels, everyone breathes a sigh of relief
  • OPEC meeting key event for next week

The week winds to its close with US markets joining in the general rally party, gaining around half a percent so far in the UK afternoon session. Further US dollar weakness is giving succour to commodity prices, and in turn UK miners are the driving force behind the FTSE bounce. There is still no stopping the euro, which continues to climb against the US dollar; flash PMIs for the eurozone are on tap early next week, which could mark a new leg higher for the single currency. Meanwhile, Washington is mercifully quiet, as the president prepares for his first overseas trip. The timing could not be more convenient for the administration, and at least offers the chance of a break from ill-timed
 tweets.

The market is gearing up for the OPEC meeting, which is going to go down as a make or break moment for oil prices. There is a real sense that, while the last big meeting staved off disaster, OPEC ministers threw away their chance by over-egging the chance of a fundamental shift in market dynamics. Now their task is much harder, and while oil has rallied hard over the past two weeks, latecomers could come away with burnt fingers if the cartel fails to live up to expectations.

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