(04 JUNE 2020)DAILY MARKET BRIEF 2:Rising doubts on OPEC

<p>In the currency markets, the US dollar is better bid against its major counterparts. The latest US dollar rebound is more of a correction of past week’s sharp losses than a trade for safety. The EURUSD consolidates gains above the 1.12 mark after having rallied above its 100-week moving average (1.1220) on cheaper dollar and prospects of more monetary stimulus at today’s European Central Bank (ECB) meeting. The ECB is expected to maintain the interest rates unchanged at today’s monetary policy meeting and to extend the Pandemic Emergency Purchases Program (PEPP) by 500 billion euros to give a further relief to the European economies ravaged by the coronavirus shutdowns. However, there is a risk of the ECB adopting a cautious tone regarding the extension of its asset purchases before getting things straight with the German court. Certainly, the European Council’s proposal of 750-billion-euro fiscal rescue package could take some pressure off the ECB’s shoulders, but Christine Lagarde wi</p>