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Daily market commentary: WTI shed some of the previous session’s gains



FOREX

The US dollar is extending gains against the other major currencies during early Wednesday trading, ahead of this afternoon’s release of American inflation numbers. The greenback’s performance received a boost last Friday after the publication of US employment data which surprised to upside and cleared the way for the Fed to bring forward the timing of the tapering. This dynamic, clearly supportive to the dollar, could be compounded by an inflation number exceeding last month’s reading of 5.4%, which would further strengthen the case for those who see inflation as structural rather than transitory.

Ricardo Evangelista – Senior analyst, ActivTrades

daily market analysis

OIL

WTI shed some of the previous session’s gains during early Wednesday trading, following the imposition of further restrictions to mobility in China in an attempt to halt the spreading of the Delta variant of the coronavirus. The situation in China and other Asian countries continues to worry oil traders, who now anticipate a drop in fuel demand in the region. This scenario appears to have overridden the positive sentiment generated by yesterday’s approval by the US Senate of an infrastructure package worth $1 trillion and the expected growth in the nation’s oil demand this spending is likely to entail.

Ricardo Evangelista – Senior analyst, ActivTrades


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Daily market commentary: WTI shed some of the previous session’s gains

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