The US dollar is staging a modest comeback, during early Thursday trading, after several consecutive sessions of decline. The greenback’s resurgence is a direct safe haven trade, as cases of COVID-19 close in on 13.5 million globally, with the number of fatalities reaching 600,000. The virus remains a threat to the growth of the global economy, and whenever localised resurgences in the number of cases are reported by the media, investors temporarily seek refuge in safe havens.
Ricardo Evangelista – Senior Analyst, ActivTrades
The oil price has been lifted in the last few weeks by expectations of a quick economic recovery and more recently by the drawdown of oil inventories and expectations for a vaccine against Covid-19.
This morning, despite reductions in cuts by OPEC+ cuts, oil is holding on to $41. From a technical point of view, we are in a crucial phase for the WTI price, which is challenging the resistance zone at $41.50. A clear surpass of this level could open space for further recoveries, while at this stage there is still no clear signal of an imminent correction as “risk on” remains dominant on markets.
Carlo Alberto De Casa – Chief analyst, ActivTrades