Daily Alert – Tuesday 7th April 2020: Positive risk sentiment returns; asset price moves predictable

Mark NugentApril 2020, Daily Alert

Daily Alert – Tuesday 7th April 2020: Positive risk sentiment returns; asset price moves predictable

Whether justified or not, risk sentiment was positive yesterday on scant signs of the pandemic situation improving. This improvement in sentiment is continuing today. Equities and commodity currencies are up and JPY and USD are down.

Russia is said to be ready to agree a 10 million barrels-per-day (bpd) production cut. How recently it was that a suggested 600K bpd cut seemed to trigger a falling out between Russia and the Saudis and the threat of a price war. Now the view is that 10 million bpd is hardly enough to balance the market such is the collapse in demand.

The calendar is light today and tomorrow. I will be keeping a close eye on sentiment and will trade accordingly.

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