The renewed optimism has pulled the oil price up
The dollar is edging lower versus a basket of other major currencies during early Wednesday trading, with investor optimism supporting risk related assets and penalising the safe haven greenback. The markets have been presented with reasons to be both cheerful and gloomy; data released on Tuesday points at a, perhaps faster than expected, economic recovery, while reports of new coronavirus hotspots and rising tensions between China and the US offer a counterbalance. For now, investors are choosing to see the glass as half-full, backing risk currencies such as the Australian dollar and the euro.
Ricardo Evangelista – Senior Analyst, ActivTrades
The renewed optimism seen in the last couple of days on markets has pulled the oil price up, with both the WTI July and August contracts above $38. Investors are betting that – even in the negative scenario of a second wave – there will not be further massive closures of economies or lockdown. Despite the surprising build in US oil inventories seen yesterday, the price quickly recovered strength confirming that so far buyers are still strong enough to contain selling impulses.
Carlo Alberto De Casa – Chief analyst, ActivTrades
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