EUR/USD edges higher amid upbeat market mood

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Ichimoku Kinko Hyo

USD/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.

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Fibonacci Levels

XAU/USD: Gold after further weakness is trading below the 38.2% retracement area while silver gains.

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US Market View

Global shares rose for the 11th day in a row to reach a peak on optimism about the rollout of COVID-19 vaccines and new fiscal aid from Washington, while tensions in the Middle East drove oil to a 13-month high. As more people are vaccinated across key markets such as the United States, and with US President Joe Biden looking to pump an extra $1.9 trillion in stimulus into the economy, the so-called reflation trade has gathered steam in recent days.

Oil prices soared on Monday to their highest in about 13 months as vaccine promised to revive demand and producers kept supply high. Russian Deputy Prime Minister Alexander Novak supported that the global oil market is on a recovery path and the oil price this year could average $45-$60 per barrel.

USA Key Point

  • More upsides than downsides for oil in the 1st half of 2021.
  • USD/JPY climbs to session high.
  • Gold continues to struggle for direction to start the week.
  • Cable stays on the hunt towards 1.4000 as the dollar keeps more vulnerable for now.
  • EUR/GBP on track towards fresh nine-month lows.

 

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