US indices dropped yesterday, along with the US dollar. As a result, the euro was able to climb above 1.2000 ahead of the ECB meeting on Thursday.
With regards to the coronavirus, India recorded 257,000 new cases yesterday, indicating that the third wave is not retreating. Turkey came second with 55,000 new cases.
On the bright side, incidence in Europe is now decreasing. Both Italy and Germany listed no higher than 13,000 cases yesterday. However, it is too early to talk about the reversal of the trend, as several days of decline are needed.
Going back to the markets, Japan and China indices dipped this morning, falling by 2% and 0.4%, respectively. This happened due to expectations of correction in the US market, as well as the strengthening of the yen.
As for oil, Brent hit $ 67.70 this morning, supported by strong reports from the United States. It is projected to close around $ 65 - $70 today.
Meanwhile, WTI reached $ 64.10 on the news that US oil is under pressure amid increase in supply and production. It is projected to trade around $ 62.50 - $ 66.00 today.
Conclusion: Markets are awaiting the ECB meeting on Thursday, as well as the upcoming data from the United States. A strong pull back is highly likely.
