State of the market: the market opens with a gap on rising oil prices
Monday’s trading opened with price gaps for some currency pairs. So, oil currencies and safe assets show a significant growth at the beginning of the day. A sharp increase in the cost of oil was the reason for this. Brent and WTI demonstrate the strengthening of about 10% and 8%, respectively. The rise in oil prices triggered an attack on Saudi Arabia’s largest refinery. Representatives of Saudi Arabia said they would resume a third of production by the end of Monday. The market also shows an increase in negative sentiment and the flight of investors to safe assets against the background of the aggravation of trade tension in the Middle East.
The US dollar index has been gaining the strength from the start of the day with a decline on fears surrounding an attack on Saudi Arabia. The US dollar index is trading in a lateral range from 98.23 to 98.00-97.90, actually maintaining a downward trend in anticipation of lower rates in the United States.
Read also: “Currency is a weapon in a trade war”
Hanzenko Anton
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