Oil is showing further weakness in the first part of this week with the losses on both WTI and Brent increasing to around 2% this morning. For the time being, WTI is still holding above $60 but with oil in a weak technical scenario, a clear breakdown of the last week’s low will open space for further declines. The support zone at $59 will be crucial in determining how low the price will sink with a collapse of this level likely to trigger a fresh sell-off with $57.20 and then $54 the two medium-term targets.
Carlo Alberto De Casa – Chief analyst, ActivTrades
European shares opened lower on Tuesday, extending the bearish trend seen in Asia amid progress slowing in the fight against the pandemic. Today’s risk-off trading stance came after investors digested the prospect of an extended lockdown in Germany due to increasing virus cases in the region, which could significantly jeopardize the nascent economic recovery. Travel and leisure shares are among today’s worst performers as traders anticipate languishing demand in those sectors as well as other cyclical and energy values. However, this trading mood may be short-lived as many investors already expect reassuring words from both Jerome Powell and Janet Yellen later today as the Fed Chairman and US Treasury Secretary will speak on the pandemic response before the US House of Financial Services Committee. In addition, traders will also keep an eye on the Governor of the Bank of England’s speech later this morning as well as US new home sales data for February.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.