The US dollar rose on Tuesday, to consolidate above the 6-week low it hit earlier, while on track for the first daily gain in 4 days, thanks to renewed demand and ahead of a testimony by Fed chair Jerome Powell before the US Congress.

The dollar index rose 0.2% to 90.19 points, after opening at 90.02 points, and hit the lowest since January 13 at 89.94, after losing 0.4% yesterday, amid hopes over the global economic recovery.

Demand for the greenback was renewed today as investors eschewed ahead of the Fed Chair's statements before the US Congress.

At 15:00 GMT, Fed Chair Jerome Powell will testify on the Semiannual Monetary Policy Report before the Senate Banking Committee, via satellite.

If Powell succeeds in calming the market about the Fed’s ability to withstand high inflation rates without hiking interest rates, the US bond market would stabilize, and the US dollar will fall against its peers.

European stocks fell on Tuesday, to continue falling for the second straight day, and hit a 3-week low, due to a broad sell-off in the tech sector, and investors' risk aversion ahead of the Federal Reserve Chief's testimony before the US Congress.

The Stoxx Europe 600 index fell 0.9% as of 11:33 GMT, and hit the lowest since February 3 at 406.7 points, after closing lower by 0.4% yesterday due to fears about the rising US Treasury yields.

The tech sector saw the largest losses in Europe today, falling around 3.5%, after a broad sell-off wave of the US tech companies during the after-market trading on Wall Street.

At 15:00 GMT, Fed Chair Jerome Powell will testify on the Semiannual Monetary Policy Report before the Senate Banking Committee, via satellite.

S&P 500 futures fell 1%, and hit a 3-week low after the index closed lower by 0.8% yesterday at Wall Street.

Back to Europe, the Euro Stoxx 50 index fell 0.9%, France's CAC 40 fell 0.25%, and Germany DAX index fell 1.2%.

The UK's FTSE 100 fell 0.4%, due to fears over the British export companies' losses as the pound continues to jump above the $1.4 barrier for the first time in three years.

Oil prices rose on Monday, extending gains for the second straight day, and jumped to a 13-month high, on estimates of supply shortages during the first quarter of 2021, while fears over the US inventories build up eased after the cold weather conditions receded and refineries in Texas resumed production, which comes ahead of the American Petroleum Institute's preliminary data on the US crude inventories.

US crude rose 1.3% to the highest level since January 2020 at $62.97 a barrel, after opening at $62.15, and hit a low of $61.55, and Brent crude rose 1.4% to the highest since January 2020 at $66.76 a barrel, after opening at $65.81, and hit a low of $65.36.

US crude rose 5.5% on Friday, while Brent crude futures rose 5%, in their first daily gain in 3 and the largest daily gain since January 5.

Goldman Sachs Group estimated that the oil market would have a deficit during the first quarter of 2021, as the global demand for fuel would recover, in addition to OPEC-Plus supply cuts and Saudi Arabia's 1 million barrels voluntary cut in February and March.

Morgan Stanley also projected that the global oil market suffers from supply shortage of about 2.8 million barrels per day, and raised its forecast for Brent crude during the third quarter to reach $70 a barrel.

The cold weather that hit the central, western and southern regions of the US started to improve, as temperatures started to rise near zero levels, which is currently helping in the re-opening of refineries in Texas.

A deep freeze in the US forced most oil wells and refineries in Texas to suspend production as temperatures plummeted to minus 18 degrees, which has not happened since 1989.

Bearing in mind that Texas produces about 4.6 million barrels per day, with more than 31 refineries, according to US Energy Information Administration's data.

The American Petroleum Institute will release its preliminary data on US crude inventories, and the Energy Information Administration will release its official report on Wednesday.

Oil prices rose on Monday, extending gains for the second straight day, and jumped to a 13-month high, on estimates of supply shortages during the first quarter of 2021, while fears over the US inventories build up eased after the cold weather conditions receded and refineries in Texas resumed production.

US crude rose 1.3% to the highest level since January 2020 at $62.97 a barrel, after opening at $62.15, and hit a low of $61.55, and Brent crude rose 1.4% to the highest since January 2020 at $66.76 a barrel, after opening at $65.81, and hit a low of $65.36.

US crude rose 5.5% on Friday, while Brent crude futures rose 5%, in their first daily gain in 3 and the largest daily gain since January 5.

Goldman Sachs Group estimated that the oil market would have a deficit during the first quarter of 2021, as the global demand for fuel would recover, in addition to OPEC-Plus supply cuts and Saudi Arabia's 1 million barrels voluntary cut in February and March.

Morgan Stanley also projected that the global oil market suffers from supply shortage of about 2.8 million barrels per day, and raised its forecast for Brent crude during the third quarter to reach $70 a barrel.

The cold weather that hit the central, western and southern regions of the US started to improve, as temperatures started to rise near zero levels, which is currently helping in the re-opening of refineries in Texas.

A deep freeze in the US forced most oil wells and refineries in Texas to suspend production as temperatures plummeted to minus 18 degrees, which has not happened since 1989.

Bearing in mind that Texas produces about 4.6 million barrels per day, with more than 31 refineries, according to US Energy Information Administration's data.