Oil is down to $90.64 after the Saudi oil minister’s comments on the fair oil price being $70-80 and that it has 4 mln barrels a day of spare capacity.
The market seems to have turned ts focus from risk aversion to interest rates, thus underpinning EUR/USD.
Mersch’s comments on the ECB shifting its inflation verbiage at the March 3 ECB meeting have helped give the EUR a solid underpinning. The market has 96 bp of tightening priced in over the next 12 months, according to Credit Suisse.
