Breaking: WTI plummets on dying OPEC+ alliance

FXStreet Team FXStreet

The price of oil is in focus in for the start of this week with additional turmoil in the markets following the weekend updates surrounding the coronavirus, at the core of geopolitical and market havoc. WTI dropped to a low of $32.80.

Firstly, crude prices went into a tailspin on the news of the OPEC+ abolishing oil production restrictions. This follows Friday's updates and lack of consensus between Russie and Saudi Arabia proposing a cut to crude output. In what appears to be a retaliation aimed at Russia fr breaking the alliance, the Saudis are hatching plans to increase its oil output in April to 12 million barrels a day – a record amount – if need be. More on this here.

Coronavirus update

Coronavirus update: Italy death toll leaps to 366 amid mass lockdown, markets set to plunge

Meanwhile, the latest on the coronavirus – 109,836 cases globally with 3,805 deaths and 60,963 recovered. There are 86% of current cases in mild condition and 14% critical. There are 94% recovered/discharged and 6% deaths from 64,768 cases that are now closed.

Source: China's NHC and www.worldometers.info/coronavirus

Risk-off supporting EUR/USD

EUR/USD is picking up a bid at the start of the week and will b a key focus with the Europan Central Bank on the cards. The rally has moved to a critical liquidity pool on the daily charts:

Chart Of The Week: EUR/USD ripe for a u-turn, depending on ECB

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FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold loses the grip; $4,000 comes next on the downside

Gold sets aside two daily advances in a row on Friday, opening the door to a potential test of the key $4,000 mark per troy ounce. The precious metal’s retracement follows a decent improvement in the sentiment surrounding the US Dollar, solid NFP data and higher US Treasury yields across the board.

Democrats win House and Senate in US midterms: Why isn’t all bad news for crypto

The biggest story this week was Tuesday’s US midterm elections, which saw Democrats win control of both the House and the Senate in a clear blue wave. This political shift in the US has triggered sharp price swings across the cryptocurrency market.

Week ahead – Inflation and geopolitics in focus as US political landscape shifts

Post-midterm election euphoria fizzles out as risk aversion prevails. US CPI, PPI and Fedspeak on the radar as Fed hike bets remain supported. Oil retreat pauses on mixed hopes about the ongoing conflicts.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.