Posted at 22 February 2022 / Categories Market Roundups
Market Roundup
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Currency Summaries
EUR/USD: The euro's initial gains fizzled on Monday after the Kremlin said there were no concrete plans for a summit over Ukraine between the Russian and U.S. presidents. Weekend reports that Vladimir Putin and Joe Biden had agreed in principle to discuss finding a possible path out of Europe's biggest military crisis in decades had prompted investors to cautiously buy stocks and the euro. But the latest news, along with reports of border skirmishes, prompted investors to take shelter. Immediate resistance can be seen at 1.1345(50%fib), an upside break can trigger rise towards 1.1383(61.8%fib).On the downside, immediate support is seen at 1.1300(Psychological level), a break below could take the pair towards 1.1269 (23.6%fib).
GBP/USD: Sterling weakened slightly against dollar on Monday as optimism about a diplomatic solution to the Russian-Ukraine standoff faded, dampening risk appetite. The Kremlin said there were no concrete plans for a summit over Ukraine between Russian President Vladimir Putin and his U.S. counterpart Joe Biden, after the French president said the two leaders had agreed on a meeting in principle. Sterling had steadied versus the greenback as investors took rising Russia-Ukraine tensions in stride to focus on relative UK-U.S. rate hike expectations, which they saw as pound-positive. Immediate resistance can be seen at 1.3621(38.2%fib), an upside break can trigger rise towards 1.3684(Higher BB).On the downside, immediate support is seen at 1.3569(5DMA), a break below could take the pair towards 1.3586 (50%fib).
USD/CAD: The Canadian dollar fell against U.S. counterpart on Monday, despite higher oil prices as Russia-Ukraine crisis escalated. In a lengthy televised address, the Russian president recognised two breakaway regions Donetsk and Luhansk in eastern Ukraine as independent entities and described Ukraine as an integral part of Russia’s history. Tensions have already rattled global markets this year and wiped tens of billions of dollars off the value of Russian and Ukraine assets, but Monday’s escalation is expected to cause much worse. The loonie was last trading 0.11% lower at 1.2759 to the greenback . Immediate resistance can be seen at 1.2762 (23.6%fib), an upside break can trigger rise towards 1.2803 (Higher BB).On the downside, immediate support is seen at 1.2732 (5DMA), a break below could take the pair towards 1.2698(38.2%fib).
USD/JPY: The dollar declined against the yen on Monday as demand for yen increased as Russia ordered troops into breakaway parts of eastern Ukraine and the region stood on the brink of war. Russian President Vladimir Putin recognised two breakaway regions in eastern Ukraine as independent on Monday and ordered the Russian army to launch what Moscow called a peacekeeping operation into the area.The yen edged about 0.2% higher to 114.50 to the dollar. Strong resistance can be seen at 115.15(50%fib), an upside break can trigger rise towards 115.43(61.8%fib).On the downside, immediate support is seen at 114.78(38.2%fib), a break below could take the pair towards 114.42(23.6%fib).
Equities Recap
European stocks closed lower on Monday, extending recent weakness, amid worries about escalating tensions in Eastern Europe.
UK's benchmark FTSE 100 closed down by 0.39 percent, Germany's Dax ended down by 2.07 percent, France’s CAC finished the day up by 2.04 percent.
U.S. stock index futures tumbled on Monday after Russian President Vladimir Putin recognized two breakaway regions in eastern Ukraine, increasing concerns about a major war.
Dow Jones closed down by 0.68% percent, S&P 500 closed down by 0.72 % percent, Nasdaq settled down by 1.23% percent.
Commodities Recap
Gold prices eased in volatile trade on Monday even as doubts over a potential summit between the U.S. and Russian presidents to discuss the crisis kept bullion supported near an eight-month high reached earlier.
Spot gold fell 0.2% to $1,895.06 per ounce by 1544 GMT, down from a session high of $1,908.03, its best level since June 3. U.S. gold futures also fell 0.2% to $1,895.70.
Oil jumped to a seven-year high n Tuesday as Europe's eastern flank stood on the brink of war after Russian President Vladimir Putin ordered troops into breakaway regions of eastern Ukraine.
Brent crude futures jumped US$2.74, or 2.91 per cent, to US$96.28 a barrel at Tuesday morning, Singapore time. US West Texas Intermediate crude futures rose US$2.79, or 3.06 per cent, to US$93.86 a barrel.