FOREX
The US dollar continues to lose ground against other major currencies during early Tuesday trading. Financial markets have so far largely shrugged aside heightened social tensions in the US and lingering attrition with China, continuing to ride a wave of optimistic risk-on. Hopes of a swift economic recovery in the aftermath of the current COVID-19 pandemic continue to condition investors insistent on seeing a glass half-full scenario. This is why the dollar, the go to currency during the darkest days of the great lockdown, is now devaluing against other major currencies.
Dollar Index
Ricardo Evangelista – Senior Analyst, ActivTrades
OIL
The positive sentiment that has dominated markets in the last few weeks has driven the recovery of the oil price. The progressive end of lockdown in most countries is clearly seen as a bullish element for the barrel. Moreover, investors are betting that the outcome of the imminent meeting of OPEC+ will be an extension of the current restrictions, probably for two or three months, although Saudi Arabia will have to overcome Russian resilience to this extension.
Technically the WTI price is challenging the resistance level at $36. A clear break-up would open space for further recoveries as the price could try to fill the gap down registered on the 9th of March, when OPEC+ temporarily failed to achieve a deal and price collapsed by more than 20% in a single day.
Carlo Alberto De Casa – Chief analyst, ActivTrades
