ActivTrades’ Market Analysts prepared their daily commentary on traditional markets for April 13, 2020. This is not a trading advice. See details below:
On a Monday marked by lower than usual trading activity, due to the holiday in Britain, Hong Kong and Australia, the focus so far has been on the performance of currencies of oil exporting countries, such as Canada, Mexico and Norway, all of which are recording losses against the US dollar. It appears that investors aren’t entirely satisfied by the compromise reached between OPEC and other major oil producers on Sunday.
The agreement to a record cut in oil output failed to reassure the markets, with the prevailing sentiment being one of aversion to risk due to fears that the newly reduced production quotas will fail to offset the damage inflicted by the drop in demand caused by the coronavirus crisis. This scenario is punishing not only to the oil price but also to the value of oil producing countries’ currencies versus the dollar.
Ricardo Evangelista – Senior Analyst, ActivTrades