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Daily market commentary: WTI remains firmly above $70 per barrel



FOREX

The euro looks set to end the week with losses in relation to the US dollar, weighed down by concerns over the advance of the Delta variant and by the European Central Bank’s dovish pivot. The single currency incurred most of the loss yesterday, after the ECB’s President, Christine Lagarde, pledged to keep interest rates at the current low levels for even longer than previously expected. Despite the measured tone, which may have disappointed those expecting an even more pronounced dovish turn, a divergence between the stance of the ECB and those of other central banks, such as the Fed, is starting to appear and could lead to further euro losses.

Ricardo Evangelista – Senior analyst, ActivTrades

daily market analysis

OIL 

WTI remains firmly above $70 per barrel, having recovered from the losses suffered at the beginning of the week, when concerns over the spreading of the Delta variant triggered a drop in risk appetite and pushed the price to multi-month lows. The main reason for the recovery may lie in the resolution of the dispute amongst OPEC+ countries, which cancelled the possibility of a price war within the cartel and is limiting the downside risk for the price.

Ricardo Evangelista – Senior analyst, ActivTrades


Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.

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Daily market commentary: WTI remains firmly above $70 per barrel

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