The risk in the market faded again in the New York session last Wednesday as the US dollar continued to move weakly, failing to maintain the momentum as the previous day's trading.
However, the harbourer sees that the situation is still in an uncertain state with the development of the Russia-Ukraine war crisis going to continue to be monitored which may raise concerns at any time.
In addition to market sentiment, investors are also paying attention to central bank fundamentals where the Canadian central bank (BOC) overnight increased its profitability to 0.50% from 0.25% previously as the market had expected.
On the other hand, the Canadian dollar has shown its strengthening in the New York session and will also be supported by the positive sentiment of the global crude oil market in the current uncertainty.
Crude oil prices posted strong spikes following concerns over supply disruptions sparked by the Russo-Ukraine war.
Petroleum exporting countries (OPEC+) have agreed to increase oil output to 400,000 barrels a day in April. The price of Brent oil so far this morning reached the level of the price of $ 115.20 while WTI oil rose again to the level of $ 111.30.
For the US dollar, investors were hinted by Federal Reserve (Fed) Chair Jerome Powell that a rate hike would apply to the Mac's notes on the 25 base currency.
This factor is seen as supporting the increase in the US dollar while market players are placing expectations for a rate increase by the Fed to 50 principals. However, the movement of the US dollar will be influenced by developments during the ongoing war crisis.
Russia's attack on Ukraine is still seen as showing no signs of stopping although the second round of talks will continue today. The period of the ceasefire will be discussed.
