April 01, 2022
EUR/USD: The main pair was trading bearish yesterday amid month-end flows and risk-off market sentiment, as well as the broad US dollar growth. Meanwhile, as Wall Street was closing, the market sentiment was negative. It’s important to note, that yesterday the French Finance Minister said France and Germany are preparing for a halt in the Russian gas flows scenario. This topic also pressured oil prices and dragged commodity currencies like the Canadian dollar down. Moreover, the lack of economic news from the Eurozone today had traders looking at the US macroeconomic data. The US calendar featured the Core Personal Consumption Expenditure which rose lower than expected.
USD/CAD: Loonie recovers after two days of losses due to stronger US dollar and weaker oil prices. Western Texas Intermediate, the US crude oil benchmark, showed a bearish dynamic from daily highs to the $102 level after an announcement that the White House would open its oil reserves and release 1 million barrels per day over the next six months. Canadian GDP rose 0.2% as expected, and was higher than December reading. On the US front, Initial Jobless Claims for the week rose above expectations.
WTI: Unstable situation in the global markets, especially in the commodity sector, was observed during the US trading session with prices demonstrating sharp daily losses after the White House issued a statement confirming recent speculation regarding crude oil reserve release. Crude oil traders have also had other than oil release topics to watch yesterday. As expected, OPEC+ agreed on a 0,4 million barrels per day output increase starting from May, having resisted continued calls from major oil-importing nations to lift output much faster. This could probably pressure oil prices in the short term period which is also favorable for sellers.