- US advance trade balance for January 2022 comes in at 107.63 billion
207768 February 28, 2022 21:51 FXStreet Market News
The EUR/USD pair trades around the 1.1200 level, recovering from an intraday low of 1.1127 but lacking momentum. Safe-haven assets gapped higher at the weekly opening, as the war in Eastern Europe sees no end. Russia keeps attacking Ukrainian cities, and multiple civilian casualties have been reported. Officers from both countries have met at the Ukraine-Belarus border and are currently undergoing peace talks. Nevertheless, the West has imposed multiple and severe financial sanctions on Russia over the weekend. Overall, markets remain in risk-off mode amid fears tensions will continue to escalate.
Market participants have been ignoring macroeconomic data these days, with nothing relevant coming from Europe. The US, on the other hand, has published the January Goods Trade Balance, which posted a deficit of $-107.6 billion and Wholesale Inventories for the same month, up a modest 0.8%. ECB President Christine Lagarde will offer a speech later in the day.
The EUR/USD pair hovers around Friday’s close, maintaining its bearish stance in the daily chart. The pair keeps developing below all of its moving averages, while technical indicators head firmly lower within negative levels, reflecting sellers’ strength.
The 4-hour chart shows that a bearish 20 SMA provided intraday resistance, as the pair retreated after testing it during London trading hours. The moving average remains far below the longer ones, a sign that bears retain control. Technical indicators recovered from their intraday lows but remain within negative levels. A steeper decline could be expected on a break below 1.1160, the immediate support level.
Support levels: 1.1160 1.1120 1.1075
Resistance levels: 1.1210 1.1260 1.1305
View Live Chart for the EUR/USD
Full Article207767 February 28, 2022 21:51 FXStreet Market News
GBP/USD extended its rebound on Friday. However, strength stays seen as corrective ahead of a retest of medium-term support at 1.3173/35, in the view of analysts at Credit Suisse.
“GBP/USD has been capped well below the 55-day average and mid-February lows as well as its uptrend from December, seen starting at 1.3487 and stretching up to 1.3500 and this rebound is viewed as a temporary bounce prior to the risk turning lower again.”
“Support is seen at 1.3329 initially, below which should see a fall back to 1.3272 and then medium-term support at 1.3173/35 – the 2021 lows, 38.2% retracement of the 2020/2021 uptrend and 200-week average. We continue to look for a good floor here. Should weakness directly extend though, we would see little then in terms of meaningful support until 1.2855/29.”
Full Article207765 February 28, 2022 21:49 Forexlive Latest News Market News
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207764 February 28, 2022 21:49 FXStreet Market News
The AUD/USD pair built on its steady intraday move up and climbed to a fresh daily high, around the 0.7220-0.7225 region heading into the North American session.
Following a bearish gap opening on Monday, the AUD/USD pair attracted some dip-buying in the vicinity of mid-0.7100s and was supported by a combination of factors. The early uptick followed the upbeat release of the Australian Retail Sales data, which reaffirmed market bets for an eventual interest rate hike by the Reserve Bank of Australia in 2022. Apart from this, a recovery in the equity markets prompted some intraday selling around the safe-haven US dollar and further benefitted the perceived riskier aussie.
The initial reaction to the weekend developments surrounding the Ukraine crisis seemed short-lived, which was evident from an intraday bounce across the global equity markets. It is worth recalling that
Western nations ramped up efforts to punish Russia for its invasion of Ukraine and imposed tough new sanctions, including cutting some of its banks off the SWIFT financial network. Moreover, Russian President Vladimir Putin upped the ante on Sunday and put the country’s strategic nuclear forces on high alert.
The market nervousness, however, eased after the Russian negotiator said that they are interested to reach an agreement with Ukraine as soon as possible. Adding to this, reports indicated that the Ukraine-Russia dialogue has already started in Belarus and Russian media is coining this as ‘peace talks’, raising expectations for some de-escalation of tensions. This, in turn, helped the risk sentiment to stabilize a bit and provided modest lift to the AUD/USD pair amid some repositioning trade ahead of the RBA on Tuesday.
That said, any optimistic move in the markets is likely to remain capped as the focus remains glued to fresh developments surrounding the Russia-Ukraine saga. Hence, it will be prudent to wait for some follow-through buying, possibly beyond the 100-day SMA hurdle, before positioning for any further gains amid absent relevant market moving economic releases.
207763 February 28, 2022 21:49 FXStreet Market News
Canada’s Current Account was a C$ 0.8B deficit in Q4 2021, according to data released by Statistics Canada on Monday. That was well below the expected surplus of C$ 4.8B and marked a drop from Q3’s C$ 0.8B surplus.
The latest weaker than expected Canada trade figures do not seem to have impacted the loonie, with USD/CAD at present largely unmoved in the 1.2740s area. The BoC will be the main event of note this week for the loonie though the overarching direction of FX market sentiment will remain predominantly influenced by geopolitics.
Full Article207761 February 28, 2022 21:45 Forexlive Latest News Market News
There’s been little real push for more oil from OPEC+. The UAE has refrained from criticizing Russia’s invasion so they’re certainly not isolated from OPEC.
OPEC argues that there’s geopolitical premium in oil and that barrels aren’t missing.
Of course, they certainly don’t mind the windfall in revenues from oil near $100 and I don’t think they want to spoil their own party.
Today, WTI crude oil rose as high as $99.10 but its slipped back to $95.37.
Full Article207759 February 28, 2022 21:40 FXStreet Market News
After coming within a whisker of printing fresh annual lows near the 1.1100 level at the re-open of Monday Asia Pacific trade as markets digest the weekend’s geopolitical developments, EUR/USD has been erratic but staged a reasonable comeback. Having been as much as 1.3% lower on the day when trading at lows in the 1.1110s, the pair now trades down closer to 0.7% on the day at the 1.1200 level. Uncertainty regarding the economic impact of the latest round of EU/Western sanctions against Russia, which include the blocking of some Russian banks from SWIFT and the freezing of a large portion of the CBR reserves will likely knee-cap short-term rallies.
An emergent consensus view of the past few sessions since Russia’s invasion of Ukraine has been that ECB tightening, previously thought to begin as soon as Q4 this year, will now be substantially delayed. The Eurozone economy now faces potentially significant disruption to its energy supply, with higher associated energy costs set to further eat into living standards, as well as a generalised hit to economic confidence with a war on its doorstep. This likely explains why the euro is the major underperforming G10 currency on Monday.
US data this week in the form of the January jobs report January ISM surveys, as well as Fed, speak with Chair Jerome Powell delivering his semi-annual testimony before Congress is likely to remind markets that the Fed remains on the tightening path. That, coupled with a continued safe-haven-related USD bid as the Ukraine war rumbles on and euro underperformance on economic uncertainty is likely to keep EUR/USD gains capped. One risk event to watch on Monday is talks between a Ukrainian and Russian delegation on the Ukraine/Belarus border. If talks were to deliver a ceasefire (not expected), that could see safe-haven demand unwound and the euro rebound back towards 1.1300.
Full Article207758 February 28, 2022 21:36 Forexlive Latest News Market News
For the full report CLICK HERE
Full Article207757 February 28, 2022 21:36 FXStreet Market News
The GBP/USD pair climbed to a fresh daily high during the mid-European session and is now looking to build on the momentum beyond the 1.3400 round-figure mark.
The pair rallied around 100 pips from the vicinity of the 1.3300 mark on Monday and has now filled the weekly bearish gap amid the emergence of some intraday US dollar selling. The nervousness over the worsening situation in Ukraine eased after the Russian negotiator said that they are interested to reach an agreement with Ukraine as soon as possible. This, in turn, led to a goodish recovery in the equity markets, which dented demand for the safe-haven greenback and was seen as a key factor behind the GBP/USD pair’s strong intraday bounce.
According to the latest reports, the Ukraine-Russia dialogue has already started in Belarus and Russian media is coining this as ‘peace talks’, raising expectations for some de-escalation of tensions. Apart from this, a steep decline in the US Treasury bond yields, along with diminishing odds for a 50 bps Fed rate hike move in March, further undermined the greenback. The recent geopolitical developments now seem to have convinced investors that the Fed would not adopt a more aggressive policy stance to combat stubbornly high inflation.
It, however, remains to be seen if the GBP/USD pair is able to build on the move or meets with a fresh supply at higher levels amid the risk of a further escalation in tensions between Russia and the West. It is worth recalling that Western nations ramped up efforts to punish Russia for its invasion of Ukraine and imposed tough new sanctions, including cutting some of its banks off the SWIFT financial network. Moreover, Russian President Vladimir Putin upped the ante on Sunday and put the country’s strategic nuclear forces on high alert.
This makes it prudent to wait for some follow-through buying before positioning for any meaningful upside. In the absence of any major market-moving economic releases, the market focus will remain clues to fresh headlines surrounding the Ukraine crisis. This will continue to play a key role in influencing the broader market risk sentiment and the USD price dynamics, which, in turn, should provide some impetus to the GBP/USD pair.
207756 February 28, 2022 21:35 FXStreet Market News
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207753 February 28, 2022 21:35 Forexlive Latest News Market News
This is a fresh record.
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