We may be in for more of a placeholder kind of trading day, though equities are seeing a bit more of a positive mood. The US inflation report tomorrow is the key risk event that markets are watching this week, so we may not see much meaningful action for now.
Major currencies are little changed for the most part so there isn't much to work with for the time being. If ECB policymakers continue to walk back on more hawkish talk ahead of June, I can imagine EUR/USD easing lower from here amid a potential breakout to the upside in Treasury yields.
Besides that, oil is holding up at its 200-hour moving average @ $89.08 for now but I reckon we could still see a potential for a further correction towards $84 to $85 first before finding firmer support. But I'd argue a flush back towards the 38.2 retracement level around $81.40 would mark a "healthier" correction amid the recent run.
From a structural perspective, I don't see what's not to like for oil as the world starts to resume normality in the months ahead and with there being a tighter market outlook and underinvestment amid the transition to green energy. That would allow for a strong dip buying conviction if we do see a deeper retracement from hereon.
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