Riskier assets, along with oil , received a boost from two key factors. First, a softer rhetoric on the US-Mexico trade front has partially eased concerns over global trade wars, while lack of progress in the US-China negotiations capped the optimism. Second, a more dovish Fed’s stance increased the odds of the US easing this year.
In the short term, the market will likely try to stay afloat and refrain from another sell-off. But considering the lingering risks in the trade front, Brent could attract some profit-taking at more attractive levels. The immediate upside target now comes around the $64 threshold. Should risk sentiment remain relatively positive, the will be able to hold above $63 in the near term.