The dollar held most of last sessions gains on Monday but kept itself on an 18-month high against major FX as market volatility took some of the bid from safe-haven asset classes.
The prospect that investors can feel fresh volatility this week remains, with major Australian, U.K. and ECB meetings scheduled to happen in the coming days.
The euro was at $1.1164, up 0.18%, having fallen to $1.1117 on Friday, its weakest since June 2020. On Friday, the Aud was at $0.703, up 0.36%, after it touched its lowest since July 2020
The bullish trend had its best week in many months. Last week was supported by investors seeking safe investments amid a sell-off in more risky assets and experts raising forecasts for U.S. interest rate increment.
Oil rises heads for best month since Feb 2021
Oil went up more than 1.5% on Monday to near 6-year highs hit in the earlier sessions, while supply issues and political interference in East of Europe and the Middle East put prices on high for their highest monthly gain in a year.
Hoping that OPEC+ will continue the current policy of gradual increase of production, oil prices will stay on a bullish side this week, predicting Brent to remain above $89 and WTI to move towards $88.
Oil prices are giving the signal of overheating as traders see a shortage of petroleum this year. Inventories are low, and there is little global spare capacity to raise production in this short period.
"Flight movements in Europe is rising as the Omicron case numbers declined. In the U.S., gasoline demand is only 4% below at 3-year-old levels, which is a better outcome. Tensions between Russia and other Countries have also underpinned oil prices. Russia who is world's second-largest oil producer, and the West have been in conflicts over Ukraine, fears that energy supplies to Europe could be disrupted or stopped.
This article was submitted by Kamal Paliwal, Business Development Manager at HonorFX.
