Oil edges up amid decline in US stockpiles

Oil edges up amid decline in US stockpiles
Oil edges up amid decline in US stockpiles

Thank you for reading the news about Oil edges up amid decline in US stockpiles and now with the details

Jeddah - Yasmine El Tohamy - TOKYO: The dollar traded near a two-month high versus the euro on Wednesday as investors looked to a widening disparity between the strength of the US and Europe’s pandemic recoveries.

The view was bolstered by moves in Washington toward fast-tracking more stimulus spending that contrasted with concerns about extended European lockdowns and expectations for a decline in euro zone growth this quarter.

The dollar was little changed at $1.2038 per euro early in the Asian session, after strengthening to $1.20115 overnight for the first time since Dec. 1. The broader dollar index was mostly flat at 91.081 after rising to a two-month high of 91.283 in the previous session

The greenback’s advances come despite a rise in equities amid improving risk sentiment, defying the currency’s historic inverse directional relationship with stocks.

However, many analysts expect the correlation to reassert itself as the year progresses, and for the dollar to decline as global growth recovers amid massive fiscal stimulus and ultra-easy monetary policy.

“The relative growth dynamics between Europe — weak — and the US — better — are favoring the USD at the moment, but it remains to be seen if this can be a longer-lasting theme,” wrote National Australia Bank FX strategist Rodrigo Catril, who expects the euro to weaken below $1.20 in the near-term.

The dollar also benefited from a massive bout of short-covering, especially against the yen where hedge funds had racked up their biggest short bets against the greenback since October 2016.

The US currency was little changed at 105.025 yen after gaining to 105.17 overnight for the first time since Nov. 12.

Many see the dollar’s rebound since early last month as a correction after its relentless decline last year, although some think the dollar’s new-found firmness could reflect a retreat of the bearish sentiment on the currency.

The dollar index has rebounded 1.2% this year after an almost 7% decline in 2020. “The bear case is facing a short-term stress test,” Westpac strategists wrote in a note.

“Our base case is that without short-term yield support there’s a limit to how far US recovery optimism can boost the USD,” they wrote. “Global reflation and the Fed’s determined dovish stance limits upside potential beyond that.”

These were the details of the news Oil edges up amid decline in US stockpiles for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.

It is also worth noting that the original news has been published and is available at Arab News and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.

NEXT Barclays and BNP Paribas report bumper Q1 profits