Market Snapshot – Oil Surges As CAD Follows

The star of the day has been the oil prices which continues to surge as of this writing as news of the production cut deal being continued for the next 9 months has cheered the buyers who have shown their approval by buying more and more as the day has progress. The news of the drop in oil inventory has also helped to push the oil prices higher and it is now challenging the $50 mark, which might be a difficult one to surmount for today.

Euro Markets Surge on Oil Bounce

This rise in the oil prices helped the European stock markets to surge for a brief while at their open as the DAX burst through 12800 and the FTSE moved to 7460 on the back of some strong fundamentals. But they were met with profit taking at the highs and the indexes have since corrected back as they consolidate some of the gains and wait for the US markets to open in the hope that they would be able to give them some direction in the short term.

EUR/USD Buoyant on Merkel Victory

The EURUSD has been buoyant since morning as the regional victory in the polls for Merkel in Germany has helped to underpin the euro and helped to add to the already strong uptrend that we have been seeing in this currency. This has helped the pair to move above 1.0950 during the course of the day but it now approaches the key psychological region of 1.10, a region which it failed to clear cleanly on its first attempt and it will be interesting to see how the pair reacts here as the US markets begin for the week.