US dollar shows slight recovery, reducing its losses
The US dollar is recovering as markets anticipate Friday's job market data.
Stocks rise as risk appetite persists
Oil prices stabilize around $81 per barrel
Dollar index shows limited losses
US dollar makes a comeback amidst job data uncertainty
The US dollar has recently shown signs of recovery after significant declines since the beginning of weekly trading. The dollar index rebounded from levels of 101.80 to trade near levels of 102.00.
This comes at a time when markets are closely watching the upcoming US job data, which may affect the movement of the dollar and the future direction of the Federal Reserve. Yesterday's manufacturing sector data revealed a contraction, putting further pressure on the Federal Reserve in upcoming meetings. Most major currencies were affected by the dollar's rise, as the EURUSD fell back to levels of 1.09, while the GBPUSD fell to 1.2490.
Oil prices continue to climb due to supply shortages, despite efforts to resume exports
Oil prices continue to rise due to supply shortages. Oil prices continued to rise on Tuesday after the sudden reduction in production by OPEC+ producers, which resulted in more than 1.16 million barrels being pumped into the markets. Brent crude rose by 0.89% to $85.69 per barrel, while West Texas rose by 0.97% to $81.20 per barrel.
It is worth noting that the federal Iraqi government and the Kurdistan regional government signed an agreement to resume oil exports from the north on Tuesday. A government official in Baghdad said that an official request was sent to Turkey to resume oil exports through a pipeline between Iraq and Turkey, and "pumping will resume in the coming hours." The interrupted flows represent about 0.5% of global oil supplies, but the stoppage forced oil companies operating in the region to stop production or transfer production to fast-fill storage tanks, which helped raise oil prices last week to nearly $80 per barrel.
Risk appetite drives continued demand for stocks despite oil supply concerns
Risk appetite supports continued demand for stocks. Futures for the Dow Jones Industrial Average rose by 48 points or 0.1%, while futures for the S&P 500 and Nasdaq-100 rose by 0.3% and 0.4%, respectively.
The Dow and S&P 500 indexes are recording gains for the fourth consecutive day, rising by 1% and 0.4% respectively on Monday. Meanwhile, the Nasdaq index fell by 0.3%. Despite concerns about the repercussions of the oil supply shortage, which may lead to inflation rising in the future, risk appetite still dominates global markets and supports the stock market index.