News

Europe Roundup: Euro trim earlier losses as Russia begins talks with Ukraine, European shares falls, Gold gains, Oil soars as Russian energy supply fears intensify-February 28th,2022

Posted at 28 February 2022 / Categories Market Roundups


Market Roundup

•Swiss Jan Retail Sales (YoY) 5.1%, 0.4% forecast,-0.4% previous

•Swiss GDP (YoY) (Q4) 3.7%, 3.7% forecast,4.1% previous

• Swiss GDP (QoQ) (Q4) 0.3% ,0.4% forecast,1.7% previous

•Spanish CPI (YoY), 7.4%, 7.1% forecast,6.1% previous

•Portuguese GDP (YoY) (Q4) 5.8%,5.8% previous

Looking Ahead Economic Data (GMT)

•13:30 Canada Current Account (Q4) 4.8B forecast,1.4B previous

•13:30 Canada Jan RMPI (MoM) -2.9% previous

•13:30 Canada Jan Retail Inventories Ex Auto 3.3% previous

•13:30 US Jan  Goods Trade Balance -99.60B,-100.47B previous

•13:30 US ADP Nonfarm Employment Change 19.2K previous

•13:30 US Wholesale Inventories (MoM) 1.3%,2.1% previous

•14:00 French 12-Month BTF Auction -0.586%

•14:00 French 3-Month BTF Auction -0.685%

•14:00 French 6-Month BTF Auction -0.678%

•14:45 US Feb Chicago PMI 63.0 forecast, 65.2 previous

•15:30US Feb Dallas Fed Mfg Business Index 2.0 previous

Looking Ahead - Events, Other Releases (GMT)

•15:50 ECB President Lagarde Speaks    

Fxbeat

EUR/USD: The euro reversed course  on Monday as ceasefire talks begin four days after Russian invasion of Ukraine while assessing European Central Bank’s future monetary policy decisions.A decision by Western allies on Saturday to block selected  Russian banks from the SWIFT payments system will inflict a crippling economic blow and cause much pain to their own companies and banks. President Vladimir Putin put Russia’s nuclear deterrent on high alert on Sunday in the face of a barrage of Western reprisals for his war on Ukraine. The euro fell initially but rebound to trade at 1.1226.Immediate resistance can be seen at 1.1221(50%fib), an upside break can trigger rise towards 1.1266(61.8%fib).On the downside, immediate support is seen at 1.1169(38.2%fib), a break below could take the pair towards 1.1112 (23.6%fib).

GBP/USD: Sterling rebounded sharply against the dollar on Monday after Western nations imposed tough new sanctions on Russia for its invasion of Ukraine. Western allies moved over the weekend to block the access of certain Russian banks to the SWIFT international payments system and announced plans to implement restrictions on the Russian central bank’s international reserves. The impact of the Russian invasion of Ukraine on the Bank of England’s future path for interest rates continues to be a theme in the near-term. Immediate resistance can be seen at 1.3412(Daily high), an upside break can trigger rise towards 1.3493(50%fib).On the downside, immediate support is seen at 1.3384(38.2%fib), a break below could take the pair towards 1.3309(23.6%fib).

USD/CHF: The dollar dipped against the Swiss franc on Monday as safe-haven Swiss franc   was in demand after Western nations imposed tough new sanctions on Russia for its invasion of Ukraine. Western allies have ramped up efforts to punish Russia with new sanctions including cutting some of its banks off the SWIFT financial network and limiting Moscow’s ability to deploy its $630 billion foreign reserves and shuttering their airspace to Russian aircraft. Companies also reported divestment plans. Adding to market nerves, Russian President Vladimir Putin put Russia’s deterrence forces which wield nuclear weaponson high alert. Immediate resistance can be seen at 0.9234 (38.2%fib), an upside break can trigger rise towards 0.9264 (23.6% fib).On the downside, immediate support is seen at 0.9209 (50% fib), a break below could take the pair towards 0.9184(61.8% fib ).

USD/JPY: The dollar strengthened against yen on Monday after Western nations announced fresh sanctions to punish Russia for its invasion of Ukraine, and Vladimir Putin put nuclear-armed forces on high alert. The United States and its allies on Saturday moved to block certain Russian banks' access to the SWIFT international payment system, which traders and analysts said could disrupt Russian exports of all commodities from oil and metals to grains.Putin put Russia's nuclear deterrent on high alert on Sunday, the fourth day of the biggest assault on a European state since World War Two. The dollar was last trading 0.02 percent higher versus the Japanese yen at 115.50 .Strong resistance can be seen at 115.30(38.2%fib), an upside break can trigger rise towards 115.74(23.6%fib).On the downside, immediate support is seen at 115.11(50%fib), a break below could take the pair towards 114.81(61.8%fib).

Equities Recap

European stocks plunged   on Monday   investors switched to safer assets after Western nations imposed tough new sanctions on Russia.

At (GMT 12:55 ),UK's benchmark FTSE 100 was last trading down  at 0.80 percent, Germany's Dax was down by 1.62 percent, France’s CAC was last down by 2.33 percent.

Commodities Recap

Gold firmed on Monday as fresh Western sanctions on Russia increased demand for gold.

Spot gold rose 1% to $1,907.08 per ounce, after gaining as much as 2.2% earlier in the session. U.S. gold futures advanced 1% to $1,907.10.

Oil prices jumped on Monday as Western allies imposed more sanctions on Russia and blocked some Russian banks from a global payments system, which could cause severe disruption to its oil exports.

Brent crude rose $4.82, or 4.9%, to $102.75 by 1028 GMT after touching a high of $105.07 a barrel in early trade.


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