Investors are lost in the fog of war and that’s why we are seeing this volatility

Wall Street indexes turned sharply lower yesterday, as news that the United States is closing its Kyiv embassy in Ukraine heightened geopolitical tensions and prompted a sell-off in choppy trading. 

All three major indexes fell after the Wall Street Journal reported on the relocation of U.S. diplomatic operations to western Ukraine, in a possible harbinger of an imminent Russian invasion. Ukraine President Volodymyr Zelenskiy urged state officials, politicians, and business leaders who have recently left the country to return within 24 hours to show unity.

Investors don’t like uncertainty, and this is obviously a period of increased uncertainty and that’s why you’re seeing this volatility. Geopolitical anxieties have been simmering in recent weeks as negotiators scrambled to find a diplomatic path forward as Russia massed troops along the Ukrainian border. Recent data showed U.S. inflation at its hottest level in decades, ratcheting up concerns that the Fed could begin hiking key interest rates more aggressively than many had anticipated.

Economic Calendar

Dow Jones Industrial Average

The Dow Jones Industrial Average fell 0.49%. The biggest gainers of the session on the Dow Jones Industrial Average were Nike Inc., which rose 1.01% or 1.41 points to trade at 141.59 at the close. Walt Disney Company added 0.92% or 1.38 points to end at 150.85 and Coca-Cola Co was up 0.65% or 0.39 points to 60.68 in late trade. The biggest losers included Walgreens Boots Alliance Inc., which lost 2.75% or 1.34 points to trade at 47.36 in late trade. International Business Machines declined 1.91% or 2.54 points to end at 130.15 and Chevron Corp shed 1.54% or 2.14 points to 136.67.

NASDAQ 100

The NASDAQ index lost 0.03%. The top performers on the NASDAQ Composite were BioDelivery Sciences International which rose 52.75% to 5.560, Knightscope Inc. which was up 32.91% to settle at 8.40 and Alpine 4 Holdings Inc. which gained 22.30% to close at 1.81. The worst performers were Dave Inc. which was down 36.91% to 5.88 in late trade, RumbleON Inc. which lost 30.22% to settle at 26.86 and Gravity Co Ltd which was down 26.45% to 45.44 at the close.

Test and automate trading

Oil

Oil dropped from a seven-year high to around $94 a barrel, pressured by a report that some troops in Russia's military districts adjacent to Ukraine are returning to bases, a move that could de-escalate tension between Moscow and the West. 

Russia's Interfax news agency cited the defense ministry as saying that while large-scale drills across the country continued, some units of the Southern and Western military districts have completed their exercises and started returning to base. U.S crude dropped $2.00, or 2.1%, to $93.46. 

There are no prizes for guessing the driving force behind this bout of volatility. The Russia-Ukraine crisis has put the energy market on high alert for possible disruptions of Russian energy supplies. Britain's Foreign Secretary Liz Truss said on Tuesday a Russian invasion of Ukraine was highly likely, although Prime Minister Boris Johnson and U.S. President Joe Biden agreed in a call on Monday there was a crucial window for diplomacy. 

Investors are also watching talks between the United States and Iran on reviving Tehran's nuclear deal with world powers.

How to trade the markets using 4 Hour Charts

Precious and Base Metals

Gold prices were steady near an eight-month high today, has heightened tensions between Russia and the West over Ukraine prompted investors to shun riskier assets and opt for safe-haven bullion. Spot gold was steady at $1,869.46 per ounce, after hitting its highest level since June 11 at $1,879.48 earlier. U.S. gold futures rose 0.5% to $1,878.00. 

Due to the Ukraine crisis, gold is supported through the inflation channel because of higher crude oil prices and through the risk aversion channel because of lower stocks, said Stephen Innes, managing partner at SPI Asset Management. If we lose that Ukraine impulse, then gold comes off quite quickly. Bullion is usually perceived as a hedge against geopolitical conflicts, and with simmering tensions surrounding Ukraine, spot gold has risen about 5% since Jan. 31 and is set for the tenth session of gains in 12. 

The (gold) market seems to be ignoring major central banks right now because investors are lost in the fog of war and it becomes very difficult to have a salient macro or fundamental view in this type of market where you really have to just go trade on a hair-trigger. 

How to trade using Divergence

Further supporting bullion, benchmark U.S 10-year Treasury yields eased, decreasing the opportunity cost of holding non-interest-paying gold, while a slightly weaker dollar helped make the metal more attractive for overseas buyers. If Russia further reduces gas supply into Europe, leading to higher energy prices across the board, that will be a positive for gold. I do however expect gold to top out around $1,920-$1,930 roughly. 

Elsewhere, spot silver fell 0.7% to $23.66 per ounce, platinum was down 0.2% to $1,025.81, and palladium dipped 2.4% to $2,303.45. Copper prices, often viewed as a gauge of global economic health, fell on Tuesday as tensions at the Ukrainian border prompted investors to scale back purchases of riskier assets. Three-month copper on the London Metal Exchange (LME) was down 0.4%.

Traditional Agricultures

Corn and wheat ended higher after earlier losses, with corn underpinned by strong export inspections and wheat weighing tensions between Russia and Ukraine that could threaten Black Sea exports. Soybean fell, pressured by rainfall in parts of South America that could refresh parched crops.

###

All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partners prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.

Tensions in Eastern Europe pushed demand for the dollar and the safe-haven yen

• The U.S dollar index reached a two-week high on growing worries about Russia-Ukraine tensions
• The euro edged up a little today but was still nursing bruises after two sessions of sharp losses
• The Canadian dollar edged lower against the greenback in yesterday’s trading session

U.S dollar index reached a two-week high yesterday on growing worries about Russia-Ukraine tensions and as St. Louis Federal Reserve President James Bullard reiterated calls for faster U.S Federal Reserve interest rate hikes.

The index briefly jumped further in afternoon trading after Ukraine President Volodymyr Zelenskiy urged Ukrainians to fly the country's flags from buildings and sing the national anthem in unison on Feb. 16, a date some Western media have cited as the possible start of a Russian invasion.

The comments spooked investors, who have fled to the safe-haven dollar amid the escalating geopolitical problem, but the dollar index quickly came off those highs. Ukrainian officials said Zelenskiy was not predicting an attack on that date but instead responding with skepticism to foreign media reports. United Nations Secretary-General Antonio Guterres said he was deeply worried about "increased speculation" about a military conflict, and urged world leaders to step up diplomacy to calm the situation. 

Economic Calendar

Washington had said Russia could invade Ukraine "any day now," and British Prime Minister Boris Johnson on Monday called the situation "very, very dangerous." The big driver clearly tensions in Ukraine. 

Markets are in risk-off mode across the board. Earlier Monday, Bullard also said four strong inflation reports in a row warranted action and that the central bank needed to "ratify" market expectations of its upcoming moves. Last week's stronger-than-expected U.S. consumer price index report has driven speculation the Fed might raise rates by a full 50 basis points in March. 

Clearly, we still have the aftershocks of last week's inflation report and St. Louis Fed president Bullard's comments. The move into safe-haven assets has overshadowed expectations for monetary policy tightening from the European Central Bank. ECB President Christine Lagarde also recently reiterated that any policy action would be gradual.

Buy and Sell over 250 crypto derivatives with ultra-low spreads

Euro

The single currency edged up a little in Asian trading today but was still nursing bruises after two sessions of sharp losses as tensions in Eastern Europe pushed demand for the dollar and the safe-haven yen. Moves were slightly more cautious elsewhere and the overall result was that the dollar index, which tracks the greenback against six peers. Overall, the EUR/USD traded with a low of 1.1278 and a high of 1.1367 before closing the day around 1.1305 in the New York session.

Yen

The Japanese Yen traded higher on growing worries about Russia-Ukraine tensions and as St. Louis Federal Reserve President James Bullard reiterated calls for faster U.S Federal Reserve interest rate hikes. Ukraine President Volodymyr Zelenskiy urged Ukrainians to fly the country's flags from buildings and sing the national anthem in unison on Feb. 16. Overall, the USD/JPY traded with a low of 114.99 and a high of 115.73 before closing the day around 115.52 in the U.S session.

British Pound

The British Pound fell to a one-week low against a stronger dollar yesterday as the possibility of war in Ukraine, along with the prospect of a Federal Reserve rate hike, gave investors reason to turn more risk-averse. Hotter-than-expected US inflation data last week also weighed on investor sentiment, as markets bet the Federal Reserve will lift rates. Overall, the GBP/USD traded with a low of 1.3493 and a high of 1.3570 before closing the day at 1.3525 in the New York session.

Trade the markets with FX Blue Labs

Canadian Dollar

The Canadian Dollar edged lower against the greenback yesterday, as investors weighed warnings that Russia could invade Ukraine at any time and a major trade route between Canada and the United States reopened. Hints by Ukraine at possible concessions to Russia helped cap the price of oil, one of Canada's major exports. Overall, USD/CAD traded with a low of 1.2717 and a high of 1.2781 before closing the day at 1.2727 in the New York session.

Australian Dollar

The Australian Dollar marked time today as global markets waited to see how events in Ukraine would unfold, while strength in energy and metals prices favored the Aussie over the kiwi. Hobbling the Aussie has been the dogged dovishness of the Reserve Bank of Australia (RBA), with minutes of its latest meeting confirming it was in no rush to raise rates. Overall, AUD/USD traded with a low of 0.7169 and a high of 0.7228 before closing the day at 0.7171 in the New York session.

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also issuing a bearish stance. The Relative Strength Index is above 41 and lies below the neutral zone. In general, the pair has lost 0.21%.

Sterling-Yen

Currently, GBP/JPY is trading below 14 and above 50, 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 45 reading and lies below the neutral zone. On the whole, the pair has lost 0.08%.

Aussie-Yen

Currently, the cross is trading above 14, 50 and below 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 43 reading and lies below the neutral region. In general, the pair has gained 0.06%.

Euro-Sterling

This cross is currently trading below 14, 50 and below 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 44 and lies above the neutral region. Overall, the pair has lost 0.12%.

Sterling-Swiss

This cross is trading above 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 46 and lies above the neutral region. In general, the pair has lost 0.21%.

###

All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partners prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.

The United States said Russia has massed enough troops near Ukraine to launch a major invasion

• A Russian attack could begin any day and would likely start with an air assault
• The dollar had been trading mostly sideways when the U.S warning hit markets
• The Canadian dollar weakened as the potential for an imminent Russian attack triggered a sell-off

The dollar rose along with other safe-haven assets on Friday after the United States said Russia has massed enough troops near Ukraine to launch a major invasion. 

A Russian attack could begin any day and would likely start with an air assault, White House national security adviser Jake Sullivan told a media briefing. The dollar had been trading mostly sideways when the U.S. warning hit markets. The dollar index, a measure of the greenback against six major currencies, rose 0.258%.

Economic Calendar

U.S crude futures jumped more than 5% to $94.66 a barrel, the highest since 2014, while gold rose more than 2% to a near two-month high at one point. The dollar's rise was due to Sullivan's comments, as well as reports that Russian President Vladimir Putin had decided to invade Ukraine, which the White House later disputed. That move up, along with moves in other safe-haven assets such as U.S. Treasuries and the Japanese yen, indicates the market is growing more and more concerned about the prospect of an invasion. 

The Japanese yen strengthened 0.63% versus the greenback at 115.29 per dollar, while the Canadian dollar weakened as the potential for an imminent Russian attack triggered a sell-off in risk-sensitive assets. Russia's currency, already lower for the day, fell further on the news. 

The rouble was last down 2.73% versus the greenback at 77.00 per dollar. Washington urged all U.S. citizens to leave the country within 48 hours. Other countries, including Britain, Japan, Latvia, Norway, and the Netherlands told their citizens to leave Ukraine immediately. 

The euro, meanwhile, weakened as markets processed the news, and was set for a weekly decline after European Central Bank President Christine Lagarde said in an interview that raising rates now would not bring down record eurozone inflation but only hurt the economy. 

Buy and Sell over 250 crypto derivatives with ultra-low spreads

The greenback had struggled to pick a direction earlier in the day as investors digested the University of Michigan’s preliminary consumer sentiment index for February. That report found that U.S. consumer sentiment fell to its lowest level in more than a decade in early February amid expectations that inflation would continue to rise in the near term.

Economists polled by Reuters had forecast the index edging up. The market's lack of clarity as to how interest rate hikes might progress has contributed to frenzied sessions this week as the dollar remains undecided on the future. I tend to think we consolidate in the short term here and am still biased toward euro downside, dollar upside against most currencies. Wall Street tumbled and safe-havens such as U.S. Treasuries and the U.S. dollar rallied after Washington said Russia has massed enough troops near Ukraine to launch a major invasion.

Share the experience and knowledge of finance professionals

Euro

The single currency fell against the U.S Dollar as traders on edge about the prospect of war in Europe and unsettled by soaring inflation. The risk of war in Ukraine pushed the euro down on Friday and it was nursing losses well below last week's top of $1.1495. Russia could invade Ukraine at any time and might create a surprise pretext for an attack. Overall, the EUR/USD traded with a low of 1.1413 and a high of 1.1461 before closing the day around 1.1441 in the New York session.

Yen

The Japanese Yen gained after the U.S said Russia has massed enough troops near Ukraine to launch a major invasion. A Russian attack could begin any day and would likely start with an air assault, White House national security adviser Jake told a media briefing. The dollar index, a measure of the greenback against six major currencies, rose 0.258%. Overall, the USD/JPY traded with a low of 114.89 and a high of 115.36 before closing the day around 115.09 in the U.S session.

British Pound

The British Pound held its ground on Friday and posted a second consecutive weekly gain as expectations of rising interest rates propped up the currency. The pound’s strength against the dollar was in stark contrast to the greenback’s other major rivals, which weakened in early trading amid rising expectations of U.S interest rate increases in the coming weeks. Overall, the GBP/USD traded with a low of 1.3488 and a high of 1.3549 before closing the day at 1.3534 in the New York session.

Day Trading or Swing Trading?

Canadian Dollar

The Canadian Dollar weakened, giving back some of this week's gains, as the potential for an imminent Russian attack on Ukraine triggered a selloff in risk-sensitive assets. Wall Street tumbled and safe-havens such as U.S Treasuries and the U.S dollar rallied after Washington said Russia has massed enough troops near Ukraine to launch a major invasion. Overall, USD/CAD traded with a low of 1.2655 and a high of 1.2754 before closing the day at 1.2664 in the New York session.

Australian Dollar

The Australian Dollar left drifting as geopolitical concerns over Ukraine offset further gains in global commodity prices as inflation becomes more broad-based. The Aussie was also under pressure given the Reserve Bank of Australia (RBA) was showing little urgency to tighten, while the market was rife with speculation the U.S Federal Reserve could hike by 50 basis points next month. Overall, AUD/USD traded with a low of 0.7169 and a high of 0.7228 before closing the day at 0.7171 in the New York session.

How to trade using Divergence

​Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also issuing a bearish stance. The Relative Strength Index is above 41 and lies below the neutral zone. In general, the pair has lost 0.15%.

Sterling-Yen

Currently, GBP/JPY is trading below 14 and above 50, 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 45 reading and lies below the neutral zone. On the whole, the pair has lost 0.01%.

Aussie-Yen

Currently, the cross is trading above 14, 50 and below 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 43 reading and lies below the neutral region. In general, the pair has gained 0.63%.

Euro-Sterling

This cross is currently trading below 14, 50 and below 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 44 and lies above the neutral region. Overall, the pair has lost 0.17%.

Sterling-Swiss

This cross is trading above 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 46 and lies above the neutral region. In general, the pair has lost 0.14%.

###

All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partners prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.

U.S crude inventories dropped by nearly 5 million barrels and fuel demand rose to an all-time high

Wall Street jumped on Wednesday, closing sharply higher as mega-cap growth stocks powered up thanks to a pause in rising interest rates, and upbeat earnings reports also encouraged investors to buy. 

The benchmark 10-year U.S Treasury yield slipped from multi-year highs hit in the previous session, helping steady sentiment across global markets and boosting demand for growth stocks. Meta Platforms surged more than 5%, ending four sessions of deep declines that saw it lose almost a third of its value. 

The biggest boosts to the S&P 500 came from Nvidia, up 2.2%, and Microsoft, up 6.4%. All 11 S&P 500 sector indexes rose, led by a 2.45% jump in real estate. The bond market basically is saying there's a cap or a limit to how much the Fed is likely to raise rates, and that is very positive for stocks in general, and especially for growth stocks that tend to be valued higher. Hit by worries about rising interest, the tech-heavy NASDAQ has fallen more than 7% so far this year after gaining nearly 21% in 2021. The S&P 500 is down about 4% year to date.

Economic Calendar

Dow Jones Industrial Average

The Dow Jones Industrial Average added 0.86%. The best performers of the session on the Dow Jones Industrial Average were Walt Disney Company, which rose 3.33% or 4.75 points to trade at 147.23 at the close. Meanwhile, Intel Corporation added 2.25% or 1.10 points to end at 49.91 and Microsoft Corporation was up 2.18% or 6.65 points to 311.21 in late trade. The worst performers of the session were Amgen Inc., which fell 1.58% or 3.82 points to trade at 237.19 at the close. Coca-Cola Co declined 1.55% or 0.96 points to end at 61.04 and Merck & Company Inc. was down 0.49% or 0.38 points to 76.53.

Join FREE online forex trading sessions and share the experience and knowledge of finance professionals

NASDAQ 100

The NASDAQ index added 2.08%. The top performers on the NASDAQ Composite were US Ecology Inc. which rose 67.73% to 47.25, Tritium Dcfc Ltd which was up 64.57% to settle at 15.70 and Gracell Biotechnologies Inc. which gained 34.10% to close at 4.09. The worst performers were Zosano Pharma Corp which was down 48.56% to 0.2431 in late trade, QuinStreet Inc. which lost 26.85% to settle at 11.39 and Society Pass Inc. which was down 23.72% to 3.57 at the close.

Oil

Oil prices rallied yesterday after U.S crude inventories dropped by nearly 5 million barrels and fuel demand rose to an all-time high, underscoring the market's ongoing tightness. U.S crude (WTI) ended up 30 cents to $89.66 a barrel. U.S crude stocks fell by 4.8 million barrels last week to 410.4 million barrels, their lowest since October 2018, while overall product supplied, a proxy for demand, hit a record 21.9 million barrels per day over the past four weeks, government data showed. 

The heavy activity and ramp-up in U.S refinery processing augur for a tight market for coming months. The data was decidedly bullish hands down - everything was bullish, with inventories at their lowest level in years. The market has also been supported by concerns about ongoing threats to supply in the United Arab Emirates, which has been hit by attacks from Yemen's Houthi group, and over Russia due to the presence of thousands of its troops near Ukraine's border. The bullish U.S energy data offset the prospect of increased supply from Iran.

Trade Commodities Today! GOLD, SILVER, and OIL

Precious and Base Metals

Gold eked out gains yesterday, helped by a weaker dollar and a retreat in U.S. Treasury yields, although prices moved in a tight range as investors refrained from making large bets ahead of U.S inflation data. Spot gold rose 0.5% to $1,834.25 per ounce. U.S gold futures settled up 0.5% at $1,836.60. 

The dollar is down a little bit and it seems somewhat supportive to gold, but overall the gold market is just kind of flat in anticipation of today's CPI number. Benchmark 10-year U.S Treasury yields were off their November 2019 highs, while the dollar eased, making greenback-priced bullion cheaper for other currency holders. 

Elliott waves signal for Gold

All eyes are on U.S. consumer price data for January due on Thursday that could provide more clarity on the Federal Reserve's rate hike trajectory. A robust inflation reading is expected to burnish gold's mettle as an inflation hedge, but U.S interest rate increases would raise the opportunity cost of holding non-yielding bullion. 

U.S central bank officials have signaled they will start raising interest rates next month to fight high inflation. Atlanta Fed President Raphael Bostic said yesterday U.S may be nearing a turn lower in inflation, but added he is still leaning towards a slightly faster pace of rate increases this year. 

Rising prices are eroding the value of fiat currencies around the world, making gold an appealing investment for many. But gold must now clear the key $1,830-$1,850 resistance range if it were to make a more serious comeback. Among other precious metals, silver rose 0.5% to $23.28 per ounce, platinum was up 0.4% at $1,036.02 and palladium climbed 1.7% to $2,286.01.

Investors have been revising their forecasts for ECB rate hikes

Traditional Agricultures

Soybean and corn futures set eight-month highs on concerns about the risk for more unfavorable crop weather in drought-stressed growing areas of South America. The U.S Department of Agriculture, in a monthly crop report, pegged Brazil’s soy crop at 134 million tonnes, down from 139 million in January, and Argentina’s soy crop at 45 million, down from 46.5 million. Analysts surveyed by Reuters, on average, expected 133.65 million for Brazil and 44.51 million for Argentina. USDA will likely need to make further cuts. Some private analysts have predicted Brazilian production dropping to around 125 million tonnes.

###

All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partners prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.

Investors have been revising their forecasts for ECB rate hikes

• The dollar slid further and the euro extended gains in yesterday’s trading session
• The CPI print may offer new indications about the pace of the Fed's monetary tightening
• Atlanta Fed President said the U.S economy may be nearing a turn lower in inflation

The dollar slid further yesterday and the euro extended gains following a hawkish shift from the European Central Bank last week and ahead of key data on U.S consumer prices due on Thursday. 

The CPI print may offer new indications about the pace of the Federal Reserve's monetary tightening, and investors are bracing for higher-than-expected numbers that would signal more aggressive interest rate hikes. That readout is expected to show a 0.5% month-over-month increase in January, and 7.3% for the year, according to economists polled by Reuters. 

Economic Calendar

Investors have been revising their forecasts for ECB rate hikes after the bank caught them off guard last week, with President Christine Lagarde flagging for the first time that monetary tightening was a possibility this year. Seeking to temper investors' growing expectations for hardline action, Lagarde calmed markets when she said on Monday there was no need for extensive tightening. But the big shift in central bank policy expectations over the past week, in particular from the ECB, has dampened the dollar's recent upside. 

As the markets work through Lagarde's comments and what Thursday's inflation numbers mean for the Fed, the dollar will likely remain range-bound. The dollar index fell 0.056%, with the euro up 0.1% to $1.1425. 

While the markets await clarity, the dollar and the euro were consolidating within yesterday's ranges. I think that the bottom line for the ECB and the Fed is there's a lot of uncertainty, and so they want to maintain maximum flexibility. The Fed and the ECB need to maintain flexibility and people read into it what they want to. 

Elliott waves forex signal for USD/JPY

Cleveland Fed President Loretta Mester said Wednesday that future rate increases after March will depend on the strength of inflation and how much it moderates or persists. Also on Wednesday, Atlanta Fed President Raphael Bostic said the U.S economy may be nearing a turn lower in inflation, though he added he was still leaning toward a slightly faster pace of interest rate increases this year.

Euro

The single currency extended gains following a hawkish shift from the European Central Bank last week and ahead of key data on U.S. consumer prices due on Thursday. The CPI print may offer new indications about the pace of the Federal Reserve's monetary tightening and investors are bracing for higher-than-expected numbers. Overall, the EUR/USD traded with a low of 1.1413 and a high of 1.1461 before closing the day around 1.1441 in the New York session.

How to trade using Divergence

Yen

The Japanese Yen gained as the dollar slid further ahead of key data on U.S consumer prices due today. That readout is expected to show a 0.5% month-over-month increase in January and 7.3% for the year. Cleveland Fed President Loretta Mester said yesterday that future rate increases after March will depend on the strength of inflation. Overall, the USD/JPY traded with a low of 114.89 and a high of 115.36 before closing the day around 115.09 in the U.S session.

British Pound

The British Pound steadied against the euro not far from a 1-1/2 month low yesterday amid continued deep uncertainty about the future path of the Bank of England’s monetary policy. Bank of England Chief Economist Huw Pill said that it was reasonable for central banks to withdraw from providing detailed guidance on the policy outlook. Overall, the GBP/USD traded with a low of 1.3488 and a high of 1.3549 before closing the day at 1.3534 in the New York session.

Choose your Forex and Crypto Broker

Canadian Dollar

The Canadian Dollar has posted slight gains yesterday. There are no Canadian events on the calendar this week, so we can expect U.S releases will have a magnified impact on the movement of the Canadian dollar. With the Fed poised to launch a series of rate hikes starting in March and inflation surging in Canada, it’s unlikely that the BoC will simply fold its hands. Overall, USD/CAD traded with a low of 1.2655 and a high of 1.2754 before closing the day at 1.2664 in the New York session.

Australian Dollar

The Australian Dollar was trying for the fourth session of gains yesterday as global equity markets rallied and commodities kept climbing, while Australian bonds formally waved goodbye to buying by the central bank. The Reserve Bank of Australia (RBA) ceased its quantitative easing campaign on Thursday having hoovered up more than A$350 billion ($251.23 billion) in bonds. Overall, AUD/USD traded with a low of 0.7169 and a high of 0.7228 before closing the day at 0.7171 in the New York session.

Types of Forex Services

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also issuing a bearish stance. The Relative Strength Index is above 41 and lies below the neutral zone. In general, the pair has lost 0.15%.

Sterling-Yen

Currently, GBP/JPY is trading below 14 and above 50, 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 45 reading and lies below the neutral zone. On the whole, the pair has lost 0.01%.

Aussie-Yen

Currently, the cross is trading above 14, 50 and below 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 43 reading and lies below the neutral region. In general, the pair has gained 0.63%.

Euro-Sterling

This cross is currently trading below 14, 50 and below 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 44 and lies above the neutral region. Overall, the pair has lost 0.17%.

Sterling-Swiss

This cross is trading above 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 46 and lies above the neutral region. In general, the pair has lost 0.14%.

Earn rebates from every trade your friends make

###

All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partners prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.

Earnings season has been top of mind for market participants

Big Tech gave major U.S stock indexes a boost yesterday and European shares ended largely unchanged as a sharp fall in oil prices took the shine off bumper profits from oil company BP. 

The euro retreated as the European Central Bank tried to cool interest rate hike expectations. Wall Street shares shook off a groggy start and early losses as Apple Inc., Microsoft Corp and Amazon.com Inc. jumped. Shares of bank stocks including Bank of America Corp, JPMorgan Chase & Co and Wells Fargo added over 1% each ahead of a U.S inflation reading due this week. 

Economic Calendar

The Dow Jones Industrial Average rose 1.06%. The S&P 500 gained 0.84%. A jump in U.S. Treasury yields lifted bank stocks on Wall Street. Shares of Bank of America Corp BAC.N, JPMorgan Chase & Co JPM.N and Wells Fargo WFC.N all gained over 1%. 

Earnings season has been top of mind for market participants for the past few weeks. Results have been, on balance, better than estimates. As we wrap up the earnings season this week, investors' focus will likely shift from the micro corporate earnings to the macro like the Federal Reserve.

Dow Jones Industrial Average

The Dow Jones Industrial Average added 1.06%. The best performers of the session on the Dow Jones Industrial Average were Amgen Inc., which rose 7.82% or 17.48 points to trade at 241.01 at the close. Meanwhile, American Express Company added 3.26% or 6.13 points to end at 194.00 and UnitedHealth Group Incorporated was up 2.01% or 9.71 points to 493.41 in late trade. The worst performers of the session were Chevron Corp which fell 1.52% or 2.11 points to trade at 136.44 at the close. Nike Inc. declined 1.11% or 1.61 points to end at 143.53 and Merck & Company Inc. was down 0.86% or 0.67 points to 76.91.

Buy and Sell over 250 crypto derivatives with ultra-low spreads

NASDAQ 100

The NASDAQ index added 1.28%. The top performers on the NASDAQ Composite were Society Pass Inc. which rose 42.68% to 4.68, Tritium Dcfc Ltd which was up 39.47% to settle at 9.54 and Ucloudlink Group Inc. which gained 38.57% to close at 2.03. The worst performers were Pulse Biosciences Inc. which was down 34.44% to 7.12 in late trade, Anghami De Inc. which lost 30.92% to settle at 13.470 and Nuvectis Pharma Inc. which was down 20.50% to 6.32 at the close.

Oil

Oil prices slipped for a third session today on profit-taking due to concerns of a possible rise in supplies from Iran despite industry data showing a surprising drop in U.S oil inventories. U.S West Texas Intermediate crude was at $89.18 a barrel, down 18 cents, or 0.2%. 

The contract slid about 2% on Tuesday as Washington resumed indirect talks with Iran to revive a nuclear deal. Such a deal could lift U.S sanctions on Iranian oil and quickly add supplies to the market, although a number of vital issues still need to be ironed out. 

What is Negative Balance Protection?

With the negotiations ongoing, the oil price is likely to lose steam in the next week, despite the bump higher we've seen today. The U.S going to Iran to reopen sanctions waiver talks shows, how tight the market is. Governments from the United States to Japan are looking at ways to tackle high oil prices as inflation soars. Undersupply is the key factor that has pumped up the oil price.

Precious and Base Metals

Gold prices advanced to a near two-week high on Tuesday, buoyed by mounting inflation concerns and Russia-Ukraine tensions, although expectations for a U.S interest rate hike limited gains. Spot gold rose 0.4% to $1,827.86 per ounce, after hitting its highest since Jan. 26 at $1,828.12 earlier in the session. U.S. gold futures settled up 0.3% at $1,827.90 per ounce, ahead of the U.S inflation data due on Thursday. 

There's this more of a wait-and-see approach with some of the bigger data that's coming out later this week. Gold has shown it's forming massive support around $1,800 and this will be an important week for gold. U.S. consumer prices for January are expected to rise 7.3% annually, according to a Reuters poll, after robust labor data last week fanned inflation fears. 

Powerful tools to integrate into your trading strategies

Gold prices have been stuck in range-bound trade since the beginning of the year, caught between rising inflation worries and growing expectations for Federal Reserve interest rate hikes. If actual (inflation) data issues as expected or higher, the dollar should strengthen along with U.S Treasury yields leaving gold with substantial downside pressure. 

Gold is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion. Higher rates also boost the dollar, pressuring the greenback-priced precious metal. The Russia-Ukraine tensions are going to remain elevated despite some of the optimism from French President Macron. 

The dollar index rose 0.3%, making bullion expensive for other currency holders, while the benchmark 10-year U.S Treasury yields hit a more than a two-year peak. Silver rose 0.9% to $23.19, platinum climbed 1.4% to $1,034.36, while palladium eased 0.2% to $2,258.87. The copper market has been subdued since the start of the year, the price is trapped in a tight trading range with volumes and open interest sliding across all three global exchanges.

Trade Commodities Today! GOLD, SILVER, and OIL

Traditional Agricultures

Soybean prices fell yesterday, a day after hitting an eight-month high, ahead of the U.S Agriculture Department’s monthly global supply and demand assessment that is expected to downgrade South American crop production. Corn also eased, while wheat firmed, underpinned by ongoing dryness across the U.S southern Plains.

###

All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partners prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.