ActivTrades’ Market Analysts prepared their daily commentary on traditional markets for April 29, 2020. This is not a trading advice. See details below:
FOREX
Support for risk related currencies is dominating the FX narrative in the early part of Wednesday’s European session, with the euro the star performer in gaining almost 0.5% versus the dollar.
The single currency’s resurgence is remarkable, considering that Italy had its credit rating downgraded by Fitch yesterday and now sits just one notch above junk. Optimism triggered by several countries entering a less stringent phase of their lockdowns and further enhanced by a recovery in oil prices is driving the resurgence of risk appetite in the markets, appearing to indicate that investors also feel positively towards the upcoming Fed and ECB announcements.
Ricardo Evangelista – Senior Analyst, ActivTrades
OIL
A risk on scenario has dominated markets in the last few days. Central banks’ huge easing decisions and growing expectations for a relatively quick solution to coronavirus – or at least for ending the lockdown – are giving some relief to oil with the June contract of WTI recovering to $14. The modest gains have been achieved despite ETFs rolling over their contracts well in advance of the actual expiry of the front-month contract order to avoid a similar situation to what happened last week when the May expiry turned negative in its final day.
Carlo Alberto De Casa – Chief analyst, ActivTrades
