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 holds lower ground near 1.1850 ahead of EU/ US data

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1850 in European trading on Friday. A broadly cautious market environment paired with modest US Dollar demand undermines the pair ahead of the Eurozone GDP second estimate and the critical US CPI data.

GBP/USD keeps losses around 1.3600, awaits US CPI for fresh impetus

GBP/USD holds moderate losses at around 1.3600 in the European session on Friday, though it lacks bearish conviction. The US Dollar remains supported amid softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold trims intraday gains to $5,000 as US inflation data loom

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains heading into the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.