Articles
GBP/USD retakes 1.3400 mark, fills the bearish gap amid modest USD pullback
207752 February 28, 2022 21:35 FXStreet Market News
Chile Industrial Production (YoY): -1.1% (January) vs previous 1.7%
207751 February 28, 2022 21:34 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
WSJ: US/Other major oil consuming nations consider releasing 70M barrels from SPR
207749 February 28, 2022 21:29 Forexlive Latest News Market News
The Wall Street Journal is reporting that US, and other major oil consuming nations are considering releasing 70 million barrels of oil from its emergency strategic petroleum reserves.
OPEC is scheduled to meet this week. The US has informed Saudi Arabia they expect that the plan production increases will continue unabated (expected production increase to remain at 400,000 barrels a day)
For the full story CLICK HERE
US, major oil-consuming nations considering release of over 70M barrels of oil reserves as prices surge – WSJ
207748 February 28, 2022 21:29 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Full Article
CBR Governor Nabiullina: Further monetary policy decisions will be driven by assessment of external risks
207747 February 28, 2022 21:29 FXStreet Market News
Central Bank of Russia (CBR) Governor Elvira Nabiullina said on Monday that further monetary policy decisions from the central bank would be driven by assessments of external risks. Explaining the decision over the weekend to hike interest rates by 1050bps to 20.0%, Nabiullina said that our financial system and economy faces a non-standard situation. Going forward, the central bank will be very flexible in its decisions.
Additional Remarks:
“High demand for cash has sent the banking sector into a structural deficit of liquidity.”
“The central bank sold $1B in the market on Thursday.”
“We did not carry out interventions on Monday due to new restrictions.”
“We are in constant contact with banks and are ready to support them.”
Full Article
Russia closes airspace to flights from 27 countries
207745 February 28, 2022 21:12 Forexlive Latest News Market News
All this airspace closing will make it extremely difficult for anyone from Europe to fly east, and anyone from Russia to fly almost anywhere.
Flights to Japan from Europe will be particularly impacted as the detour is enormous. Even flights from London to Singapore cross considerable parts of Russia.
Full Article
Ukraine demans retreat of all Russia forces from its territory, including Donbas
207743 February 28, 2022 21:05 Forexlive Latest News Market News
Ukrainian media cites the office of the President saying that the Ukrainian delegation at talks in Belarus has demanded the retreat of all Russian forces from its territory, including Donbas.
This doesn’t sound like a negotiation that’s going anywhere. That said, I’m not convinced this is the real negotiating position.
Full Article
Putin calls west ‘an empire of lies’ after imposing sanctions on Russia
207741 February 28, 2022 20:56 Forexlive Latest News Market News
On state TV, Putin called the west an ’empire of lies’ after the latest sanctions on Russia.
Russian foreign minister Lavrov was supposed to travel to Geneva today but their mission in Switzerland said the visit has been called off; they cited countries blocking Russia’s flight path. He may address the mission remotely.
Yesterday, Putin ordered Russian nuclear forces placed on enhanced combat duty — the highest level of readiness. The defense minister confirmed that’s been put in place.
The Russian foreign ministry also summoned the Canadian ambassador to Moscow and complained about hostile protests outside the Russian embassy in Washington.
Full Article
Reserve Bank of Australia Preview: Inflationary pressures and wage growth take center stage
207739 February 28, 2022 20:56 FXStreet Market News
- The Reserve Bank of Australia will likely maintain its benchmark rate at 0.1%.
- The aussie has been quite resilient to the risk-off environment, trading near its yearly high.
- AUD/USD needs to clear the 0.7280/0.7310 region to gather bullish momentum.
The Reserve Bank of Australia will announce its decision on monetary policy on Tuesday, March 1st. The central bank has so far resisted inflationary pressures, although it was forced by market conditions to lift the yield-curve control at the end of 2021. At this point, Australian policymakers continue to pledge for a rate hike in 2024, despite speculative interest having moved forward chances of a rate hike to the second half of this year. Generally speaking, financial markets expect two rate hikes before year-end, totalling 0.50% of hikes.
Consumer Price Index and salaries
Australian price pressures remain elevated and are expected to keep rising throughout 2022. On the other hand, wage growth remains subdued. The RBA has made it clear that future rate hikes are dependent on signs of wage inflation. Policymakers said they want to see it rise beyond 3% to help them make up their minds on pulling the trigger.
Last week, the country reported that the Q4 Wage Price Index rose by 0.7% in the three months to December, the most since early 2014, and by 2.3% YoY, slightly below the 2.4% expected. It was the highest annual reading since the second quarter of 2019 when the coronavirus pandemic hit the world. The figures, while encouraging, are still well below the RBA’s target.
Even further, the RBA is now expecting real wages to keep falling well into 2023, according to their latest estimates, while they also believe that inflation will outpace wage growth until mid-2023. Inflation in the country is currently running at 3.5% YoY, slightly above policymakers’ comfort zone, but hardly as bad as in the rest of the major economies.
The Reserve Bank of Australia is expected to maintain its benchmark rate at a record low of 0.1%, and market players will focus on hints about upcoming decisions. Will the central bank be more worried about inflation and less about salaries? Or will policymakers keep their stubborn view and dismiss inflation-related concerns?
AUD/USD possible scenarios
The Australian dollar has been quite resilient to the risk-off environment that is leading financial markets these days. The AUD/USD pair trades around the 0.7200 figure, not far from a February monthly high of 0.7283. The pair fell to 0.7094 when Russia invaded Ukraine but quickly recovered from that level, somehow hinting at buyers’ dominance.
A hawkish stance from the RBA should push the pair higher, at least temporarily. The pair topped at 0.7313 in January, which makes the 0.7280/0.7310 price zone quite a strong resistance area. Beyond it, the pair has room to extend its advance towards the 0.7400 figure, where buying interest should recede.
Should investors feel disappointed, the pair will likely fall toward the 0.7100 region, although it will need to clear the 0.7070 support to turn bearish in the mid-term and test the psychological 0.7000 threshold.
Senior Biden Admin official: Actions will prevent Russia from using USD, EUR, GBP, JPY to defend its currency
207738 February 28, 2022 20:45 FXStreet Market News
A Senior Biden Administration official said on Monday that recent actions taken by the US and its allies to impose new restrictions on the Central Bank of Russia (CBR) will prevent the central bank from using its dollars, euros, pounds and yen to defend its currency.
Additional remarks:
“US sanctions against Russia’s central bank were months in the planning… ‘we were ready'”.
“Putin’s war chest of $630bln in reserves only matters if he can use them and after today’s action that will no longer be possible.”
“We will continue to scope our measures to ensure steady supply of energy.”
“Our strategy is to make sure the Russian economy goes backwards as long as Putin continues with his Ukraine campaign.”
“Our relationships with allies… ‘trust and solidarity’ were important in taking collective action against Russia.”
“The Russian central bank has been attempting to bring assets to Russia and other safe havens since Saturday’s sanctions announcement.”
“Today’s action to prohibit transactions with the Russian central bank will hinder Russia’s ability to access hundreds of billions of dollars.”
“Coordinated action will cause weakening of the Russian currency and make financing more difficult.”
“We always saw Russia’s $630bln in reserves as an insurance policy, action today ‘removes that insurance policy’.”
“If Belarus continues to aid and abet Russia’s aggression in Ukraine, they will also face consequences.”
“Sanctions against the central bank were immediately effective and we wanted to put them in pace before US markets open.”
“Russian inflation is very likely to spike while purchasing power and investment are likely to plummet.”
“The US remains in close contact with the EU to finalize a list of Russian banks that will be cut off from SWIFT.”
“Actions by the US and its allies will prevent Russia from using its dollars, euros, pounds or yen to defend its currency.”
“We don’t want rising prices to benefit Putin given Russia’s role as leading energy supplier.”
“The US and its allies also have a collective interest to degrade Russia’s capacity to be a leading energy supplier over the long term.”
Full Article
India Gross Domestic Product Quarterly (YoY) below expectations (6%) in 4Q: Actual (5.4%)
207737 February 28, 2022 20:40 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Gold Price Forecast: XAU/USD pares intraday gains, holds above $1,900 amid Russia-Ukraine war
207734 February 28, 2022 20:40 FXStreet Market News
Update: Gold slipped below the $1,900 mark during the early part of the European session and filled a major part of its bullish gap opening on Monday, though bulls managed to defend the 200-hour SMA. The incoming headlines surrounding the Ukraine crisis continued weighing on investors’ sentiment, which, in turn, acted as a tailwind for the safe-haven XAU/USD. In the latest development, 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. 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 a bit after the Russian negotiator said that they are interested to reach an agreement with Ukraine as soon as possible. In fact, the Ukraine-Russia talks have reportedly started in Belarus and expectations for a likely ceasefire led to modest recovery in the equity markets. This was seen as a key factor that exerted some intraday downward pressure on gold. That said, the emergence of fresh US dollar selling at higher levels helped limit any meaningful slide for the dollar-denominated commodity. Nevertheless, the XAU/USD, so far, has managed to hold just above the $1,900 mark as the market focus remains on the Russia-Ukraine saga.
Previous update: Gold (XAU/USD) defends the week-start gap-up around $1,905, up 0.80% intraday amid the rush to risk-safety during Monday’s Asian session.
The yellow metal snapped a three-week uptrend even after rising to July 2021 high. However, the weekend headlines concerning the Russia-Ukraine tussles amplified the risk-off mood and portrayed an upside gap as the NFP week begins.
Among the latest headlines, the UK Times’ report suggesting Russia ordered 400 mercenaries “to assassinate (Ukraine) President Zelenskyy and his government and prepare the ground for Moscow to take control,” gain major attention. Also important were the comments from European Commission President Ursula von der Leyen who said to the EU News that the European Union (EU) wants Ukraine in the bloc while also adding, “They’re one of us.”
The weekend headlines were rather mixed as the West levied harsh sanctions on Moscow but President Vladimir didn’t step back and put nuclear arsenal on high alert, raising fears of a nuclear war. On the same line are the latest headlines from Belarus that the nation wants to renounce its non-nuclear neutral status. However, both the nation’s readiness for negotiations trigger the ray of hope.
While portraying the mood, the US Dollar Index (DXY) extends a three-week uptrend while the US 10-year Treasury yields print six basis points (bps) of a daily downside to 1.90% at the latest. Further, stocks in Asia-Pacific are also in the red whereas the S&P 500 Futures pare drop nearly 2.50% at the latest.
Moving on, the Russia-Ukraine talks will be in focus for near-term directions while US trade numbers for January and Chicago Purchasing Managers’ Index for February may direct intraday moves. It’s worth noting that the monthly US Nonfarm Payrolls (NFP) will be crucial this week as traders slow down on their hopes of a 0.50% rate hike in March.
Technical analysis
Gold failed to provide a decisive upside break of a seven-month-old rising channel, despite marking an uptick to the September 2020 highs during the last week.
The pullback move gains support from the RSI’s retreat from the overbought territory and receding bullish bias of the MACD, which in turn challenges the recent upside moves of the XAU/USD prices.
However, the November 2021 peak of $1,877 and a three-week-long rising trend line near $1,875 restricts the bullion’s immediate downside.
Gold: Daily chart
Also acting as nearby support for gold prices is the confluence of the 100-SMA and a monthly ascending trend line near $1,865.
Meanwhile, the 50-SMA level surrounding $1,895 and the $1,900 threshold will challenge gold’s short-term recovery.
Gold: Four-hour chart
Following that, a broad resistance area between $1,911 and $1,915, comprising multiple levels marked since May 2021 and the aforementioned channel’s upper line, will be crucial for XAU/USD bull’s re-entry.
In a case where gold buyers remain dominant past-$1,965, a run-up towards January 2021 near $1,960 and the latest swing top near $1,975 can’t be ruled out.
To sum up, gold is likely to weaken further but the buyers aren’t out of the woods yet. Hence, any recovery beyond $1,915 could recall the bulls.
Full Article