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AskTraders Daily Market Overview: The Dollar Is Showing Signs Of Strength

Updated: 21 May 2020

FX Markets

The dollar is gaining some strength against other major currencies today as the positivity of the previous sessions begins to fade slightly…

It feels like I have said that quite a few times over the last few sessions as we see markets worry about the virus, only to end up rallying later in the day.

The slight risk-off could be put down to comments from Fed officials warning of tough times ahead.

If we take a look at the hourly chart above, we can see that the EURUSD has moved from recent highs of 1.0999 down towards the 1.0950 level and currently trading at 1.0970.

Oil

Now, I haven't spoken about oil too much recently since the collapse of the May contract price…

But, since then, we have seen prices surge higher, despite the uncertainty surrounding the future of the global economy.

However, with oil demand in China increasing, lockdown restrictions are easing, and production cuts, it has helped to drive prices higher.

The front-month contract for WTI crude is currently trading at $34, up nearly 2% on the day. Barring any more bad news regarding the coronavirus and global economies, I would expect the rally to continue a little longer.