Oil market struggling on mixed sentiment/Gold – The safest asset/Dollar rally marches on

Overnight Reviews:

Gold: 0.49%

Silver: -0.36%

US Index: 0.33%

WTI Oil: 0.00%

NDX: -0.94% 

Oil market struggling on mixed sentiment

The black commodity was traded flat near the $54 handle, after breaking out from its previous consolidation zone. The oil market is currently battling fears of the Covid-19, which dampened the outlook for global demand, with no support yet from OPEC+. Easing market fears were the EIA inventory reports, which showed less than expected buildup in US inventories last week.  

Gold – The safest asset

With the recent plunge in stock markets amid concerns that the epidemic Covid-19 spreading beyond China might jeopardize corporate earnings, gold remained the top preference for safe-haven assets, comparing with Yen and Swiss Franc, which lost their grounds against the strong dollar. Restless towards the Covid-19 issue, demand for gold had prompted its price now towards the $1,620 handle. 

Dollar rally marches on

The dollar extended its rally for the 7th day, with ongoing fears towards the global impact of Covid-19, keeping investors on risk aversion mode. Despite the global economic slowdown and outbreak of the Covid-19, the US economy remains resilient, giving the dollar strong safe-haven properties as the DXY now on course for its 3rd consecutive weekly gains.  

Main Events Today GMT +8

07:00 NZD RBNZ Gov Orr Speaks

16:15 EUR French Flash Services PMI

16:30 EUR German Flash Manufacturing PMI
16:30 EUR German Flash Services PMI
17:30 GBP Flash Manufacturing PMI

17:30 GBP Flash Services PMI

21:30 CAD Core Retail Sales m/m

22:45 USD Flash Manufacturing PMI