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

EUR/USD clings to daily gains, still below 1.1900

EUR/USD manages to reverse two daily pullbacks in a row and advances modestly on Thursday, hovering around the 1.1880 zone amid the inconclusive price action around the US Dollar. Meanwhile, weekly Initial Claims rose more than expected last week, while attention is expected to shift to the upcoming US CPI data on Friday.

GBP/USD picks up pace, hits 1.3640

GBP/USD trades with modest gains around 1.3640 so far on Thursday. Indeed, Cable looks to leave behind the weakness seen in the first half of the week in a context of an equally erratic performance in the Greenback and disappoting UK data releases.

Gold stays offered below $5,100

Gold keeps the choppy trade well in place on Thursday, navigating the area below the $5,100 mark per troy ounce amid the lack of clear direction in the Greenback, declining US Treasury yields across the curve and caution ahead of Friday’s publication of US CPI.