US Dollar drops to more than one-month low, Crude oil keep growing

Updated: March 18, 2021

EUR/USD: The euro showed a bullish dynamic against the US dollar on Monday after macroeconomic statistics from German showed that business morale rose more than expected in February. It rose more than expected this month, pulling back from a half-year low in January thanks to a brighter industrial outlook and well-stocked order books, the IFO economic institute reported yesterday. The Ifo institute said its business climate index increased from 90.3 to 92.4, refreshing its highest levels since October. The euro rose 0.2% against the dollar to 1.2170.

BUY 1.2180/TP 1.2300/SL 1.2130

GBP/USD: Cable rose yesterday, showing fresh three-year highs against the US dollar as bullish market participants bet on the UK’s vaccination process which will bring an economic recovery. Prime Minister Boris Johnson set out a “Roadmap to Recovery” schedule for easing the lockdown. British pound reached its highest levels since April 2018 when it broke 1.40 level on Friday. It has increased 2.9% against the dollar this year and its rapid gains caused rumors of a possible correction. The recent pound growth can be attributed to the UK’s success in providing COVID-19 vaccinations. Looking ahead, GBP/USD traders will focus on usual topics, such as vaccine rollouts and Covid infection rates. The UK Labour Market Report for January, released today, will be also closely watched.

BUY 1.4070/TP 1.4200/SL 1.4030

WTI: WTI crude oil futures, North America’s main oil benchmark, showed growth above $62/bbl, closing Monday’s session up with more than 3 USD rise after it pulled back from the 59 USD mark. That’s a 5.5% intra-day rally, WTI’s biggest one-day growth since 9th November, when Pfizer firstly released their data showing their vaccine was highly effective against Covid. Looking ahead, weekly US inventory data will be closely watched by oil traders, as is typically the case, despite this week’s release will show last week’s weather-related disruptions and it is still unclear how this will affect the data. Moreover, last week’s optimism that officials from the US and Iran might be able to meet together seems to get weak and this seems to have been another factor helping crude oil markets.

BUY LIMIT 60.00/TP 63.00/SL 59.00