The US dollar’s weakness offered a boost to emerging-market currencies and oil.
Daily news: Crude oil prices keep rising
- The main focus for EUR/USD today will be on the ECB president Mario Draghi speech at 16:00 MT time. Moreover, Ifo business climate index for Germany will be released today. Most experts expect it to drop to 103.2 in September due to the decrease of PMI. The pair was trading in the red zone on Friday. If bears continue to attack, the support is at 1.1644. However, any positive news from the events mentioned above can change the situation to growth. In that case, watch the resistance at 1.1830.
- The latest US and Chinese tariffs on each other came into effect today at 07:01 MT time. AUD/USD and NZD/USD opened with a gap down, but kept being bullish. The next resistance for the aussie is at 0.7346. Otherwise, watch the support at 0.7184.
- As for NZD/USD, the resistance to follow is at 0.6720. If bears strike back, the support is at 0.6576.
- Countries rejected the claim of the US president Trump to reduce oil prices during the OPEC meeting on September 23. The rise of the prices for crude oil can be explained by the limited output after the US sanctions to Iran. Right now Brent is trading near its psychological level of $80.
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The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
The US unemployment claims are out on Thursday at 15:30 MT time.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.