Market Analysis

Тhird consecutive day of loss for the US dollar

FOREX

The US dollar is on its third consecutive day of losses in relation to other major currencies, having by Wednesday morning shaved off most of the gains accrued last week. The dollar is under pressure for two main reasons: Risk appetite is coming back to the financial markets, a dynamic that weighs on the greenback due to its safe haven status; at the same time, Fed officials have, since the weekend, been talking down the idea of a 50 basis points rate hike in March, an idea which had helped fuel the gains of last week.

Ricardo Evangelista – Senior Analyst, ActivTrades

Source: ActivTrader

 

OIL

WTI crude oil prices are rising during early Wednesday trading, approaching fresh seven-year highs. US crude inventories revealed a drop in stocks, feeding into the prevailing global narrative of tight supply amidst increasing demand. Against this backdrop, geopolitical instability in Eastern Europe and the Middle East could, if it continues to escalate, generate even greater supply-side problems. Today’s OPEC+ meeting isn’t expected to bring any relief, as the consensus view is that the members of the organization are unlikely to agree any output increases, meaning there may be scope for further rises in the price of the barrel.

Ricardo Evangelista – Senior Analyst, ActivTrades

Source: ActivTrader

 

EUROPEAN SHARES 
European markets opened mixed, despite another bullish session in Asia as well as US Futures pointing to a firmer open on Wednesday amid rising appetite to riskier assets. Market sentiment continues to improve globally this week as investors keep on welcoming strong corporate results. The latest solid reports from Alphabet and AMD helped the Tech sector to drive benchmarks higher while investors are awaiting results from Amazon and Activision Blizzard Inc. due later today. Meanwhile, stable Treasury and FX markets still provide a positive environment to stock traders, even if market operators are keeping an eye on geopolitical tensions with Ukraine, waiting for a breakthrough in the diplomatic talks between NATO and Russia. Elsewhere, Energy stock traders are also braced for a rough day as an exacerbated market volatility is widely expected today with both the US crude oil inventories data as well as the 25th OPEC+ meeting where discussions about a potential oil supply boost may take place.

Pierre Veyret– Technical analyst, ActivTrades

Source: ActivTrader

 

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