OIL EXTENDS GAINS
The dollar held on to its gains against major peers, consolidating its recent mini-rebound with the euro unable to make inroads despite data showing eurozone economic sentiment at its highest since 2000.
However, with Mr Trump’s tax cuts already built in and the European Central Bank expected to begin winding down its stimulus, analysts say the greenback will likely face further pressure from the single currency down the line.
On oil markets, both main contracts continued their positive start to the year as major producer Iran is hit by unrest and Venezuela’s economy remains depressed.
“Protest in Iran, and decreasing US crude inventories are providing a stable floor on WTI,” said Stephen Innes, head of Asia-Pacific trading at Oanda, said in a note.
He added that while a severe freeze in the northeast of the US would boost demand for heating oil, the temperatures were keeping drivers off the road.
However, he said: “With geopolitical risk extending from Tehran to Venezuela’s economic demise, the market remains on a bullish tack.”