The euro was under pressure as intensifying Russian bombardment of Ukraine's cities

• The dollar was down on Wednesday morning in Asia, but the moves were small
• Investors flocking to safe-haven assets as Russia’s invasion into Ukraine intensified
• Investors who have assets in Russia that will be increasingly challenging to divest

The dollar was down today morning in Asia, but the moves were small. Investors flocking to safe-haven assets as Russia’s invasion into Ukraine intensified. 

The US Dollar Index that tracks the greenback against a basket of other currencies inched down 0.01%. The euro was under pressure today as intensifying Russian bombardment of Ukraine's cities and surging oil prices raised investors' concerns about a hit to Europe's economy and growth.

Economic Calendar

The common currency briefly fell below support to touch a 21-month low of $1.1090 overnight, before recovering a slightly to last trade at $1.1114. The risk is a sustained move below $1.1106 if market participants downgrade the Eurozone economic outlook. Sterling, which fell 0.7% overnight, was also squeezed at $1.3305. 

Russian forces were attempting to encircle and subdue Ukrainian cities with intensifying bombardments on Wednesday, seven days into an invasion that has sparked massive international sanctions, pushing international companies to halt sales, cut ties, and dump tens of billions of dollars worth of investments.

Best Forex Demo Account

Russia's ruble remained under pressure at 108 per dollar, having fallen as low as 120 earlier in the week. Commodity-linked currencies, such as the Australian dollar, continued to hold their own as surging prices for oil, gas, coal, and grains provided support. The Australian dollar gained 0.2% to $0.7265, also helped by data showing the Australian economy performed strongly in the fourth quarter. The Aussie is at a one-year high versus the euro. The strength of commodity prices combined with Australia's much improved current account position suggests that there is good reason to expect AUD/USD to break with its traditional role of a 'higher risk' G10 currency. 

In contrast, high energy prices have been capping gains for the safe-haven Japanese yen, despite the geopolitical turmoil, as Japan imports the bulk of its energy. It slipped back to 115.06 per dollar today. Markets were largely unmoved by U.S. President Joe Biden's State of the Union address.

CFD News: US Stock Markets

Euro

The single currency was under pressure today as intensifying Russian bombardment of Ukraine's cities and surging oil prices raised investors' concerns about a hit to Europe's economy and growth. The risk is a sustained move below $1.1106 if market participants downgrade the Eurozone economic outlook. Overall, the EUR/USD traded with a low of 1.1140 and a high of 1.1245 before closing the day around 1.1216 in the New York session.

Yen

The Japanese Yen traded lower despite the geopolitical turmoil, as Japan imports the bulk of its energy. It slipped back to 115.06 per dollar. Markets were largely unmoved by U.S President Joe Biden's State of the Union address. Biden touched on the subject of America's recent troubles with high inflation but the solutions he offered were long-term. Overall, the USD/JPY traded with a low of 114.84 and a high of 115.72 before closing the day around 114.98 in the U.S session.

Trading Signals and Trading Forecasts

British Pound

The British Pound steadied yesterday against the euro and the dollar as investors awaited speeches from Bank of England officials and watched for developments on the Russia-Ukraine crisis. Risk assets, like stocks and sterling, regained some ground after reports of ceasefire talks between Russian and Ukrainian officials began on the Belarusian border. Overall, the GBP/USD traded with a low of 1.3326 and a high of 1.3430 before closing the day at 1.3416 in the New York session.

Canadian Dollar

The Canadian Dollar edged higher as investors weighed uncertainty caused by Russia's invasion of Ukraine and domestic data showed the economy expanding at a robust pace in the fourth quarter. The Canadian economy grew 6.7% in the fourth quarter on an annualized basis, beating analyst expectations and the BoC's own forecast of 5.8%. Overall, USD/CAD traded with a low of 1.2657 and a high of 1.2807 before closing the day at 1.2672 in the New York session.

Best Forex Trading Platform

Australian Dollar

The Australian Dollar hit a one-year high on the euro today as investors were attracted by Australia's status as a net energy exporter and distance from Europe's troubles. The war in Ukraine, and the resulting spike in energy prices, have darkened the outlook for European growth and seen markets drastically scale back expectations on when the European Central Bank may tighten policy. Overall, AUD/USD traded with a low of 0.7138 and a high of 0.7235 before closing the day at 0.7231 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 40 and lies below the neutral zone. In general, the pair has lost 0.96%.

Sterling-Yen

Currently, GBP/JPY is trading below 14, 50, and 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 42 reading and lies below the neutral zone. On the whole, the pair has lost 0.43%.

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 54 reading and lies above the neutral region. In general, the pair has lost 0.07%.

Euro-Sterling

This cross is currently trading above 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 46 and lies below the neutral region. Overall, the pair has lost 0.51%.

Sterling-Swiss

This cross is trading below 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 40 and lies below the neutral region. In general, the pair has lost 0.89%.

How to trade cryptocurrencies?

###

All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's 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.

Gold is often used as a safe store of value during times of political and financial uncertainty

US Stock Markets: Wall Street ended mixed yesterday, joining a selloff that began on European bourses as the latest wave of western sanctions targeting Russia added to worries about inflation. 

The United States over the weekend announced punishing sanctions on Russia that touched on its central bank and the ability of some financial institutions to access the SWIFT financial messaging system. The impression coming off the weekend is that Russia, and all those that oppose Russia's invasion of Ukraine, are digging in for a longer and more damaging battle on the military, financial and economic fronts. 

Economic Calendar

This week's calendar includes congressional appearances by Fed Chair Jerome Powell expected to focus on the central bank's efforts to counter inflation, as well as several key economic reports, including February jobs data. As trading began in New York, investors retreated from riskier assets while seeking out precious metals, Treasury bonds, and other safe-haven investments.

Dow Jones Industrial Average

The Dow Jones Industrial Average lost 0.49% yesterday. The best performers of the session on the Dow Jones Industrial Average were Chevron Corp, which unchanged 0% or 0 points to trade at 133.42 at the close. Meanwhile, Boeing Co unchanged 0% or 0 points to end at 209.03, and Salesforce.com Inc. was unchanged 0% or 0 points to 196.84 in late trade. The worst performers of the session were JPMorgan Chase & Co, which unchanged 0% or 0 points to trade at 152.14 at the close. Goldman Sachs Group Inc. unchanged 0% or 0 points to end at 346.04 and Nike Inc. was 0% or 0 points to 142.95.

Types of Forex Services

NASDAQ 100

The NASDAQ index gained 0.41% yesterday. The top performers on the NASDAQ Composite were Mullen Automotive Inc. which was unchanged from 0% to 0.63, Neurosense Therapeutics Ltd which was unchanged 0% to settle at 1.57, and China SXT Pharmaceuticals Inc. which unchanged 0% to close at 0.1826. The worst performers were VEON Ltd. which was unchanged from 0% to 1.3500 in late trade, Lexicon Pharmaceuticals Inc. which was unchanged at 0% to settle at 2.740 and Esports Entertainment Group Inc. which was unchanged at 0% to 2.97 at the close.

Oil - Crude Oil Market

Oil prices surged today as concerns over potential supply disruptions after Russia's invasion of Ukraine and related sanctions outweighed talks of a coordinated global crude stocks release. U.S West Texas Intermediate (WTI) April crude futures were up $2.56, or 2.67%, at $98.28. 

The contract touched a high of $99.10 a barrel the previous day, ending up more than 4%. A huge Russian military convoy approached Ukraine's capital Kyiv on Tuesday after ceasefire talks between Russia and Ukraine failed to reach a breakthrough. 

Russia's economic isolation worsened as the world's biggest shipping firm Maersk on Tuesday said it would halt container shipping to and from Russia. The fragile situation in Ukraine and financial and energy sanctions against Russia will keep the energy crisis stoked and oil well above $100 per barrel in the near-term and even higher if the conflict escalates further.

Trading Signals

Precious and Base Metals - Gold Market

Gold prices edged lower today after Russian and Ukrainian officials held the first round of ceasefire talks overnight, dampening demand for the safe-haven bullion. Spot gold was down 0.1% at $1,906.00 per ounce. U.S gold futures rose 0.5% to $1,909.30. High-level talks between Kyiv and Moscow ended with no agreement except to keep talking, but Asian markets stabilized on signs of no immediate escalation of sanctions. 

There was a swing in risk sentiment during the New York session, which reversed much of the Ukraine panic seen on Monday in Asia and Europe trade after sanctions were ramped up on Russia over the weekend. Investors are, for now, less concerned that the Ukraine war will lead to a double-dip recession and that has seen a rush back into equities at the expense of havens like gold.

CFD News

China's factory activity expanded slightly in February as new orders improved, pointing to some resilience in the world's second-largest economy. Gold often used a safe store of value during times of political and financial uncertainty, had risen about 6.5% in February, having soared to an 18- month high of $1,973.96 last week. We believe that gold may experience price volatility in either direction due to potential tactical positioning but investment demand is likely to be supported longer-term by high inflation, geopolitics, and overall market pullbacks. Auto-catalyst metal palladium gained 0.6% to $2,504.81, having reached its highest level since July 2021 at $2,711.18 last week. Spot silver was flat at $24.42 per ounce, while platinum rose 0.5% to $1,048.58.

Forex News

Traditional Agricultures

Wheat futures spiked after hitting 13-1/2-year highs on Friday, lifted by concerns that Russia's invasion of Ukraine and Western sanctions will continue to disrupt grain exports from the Black Sea region. Corn and

soybean futures also rallied on worries over the crisis. Egypt's state grains buyer, the General Authority for Supply Commodities, canceled a second international tender for wheat amid supply uncertainty and market turbulence following the invasion. The impact of sanctions on Russia is also being assessed. Importers will have to switch elsewhere at a time of pretty tight global supplies.

###

All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's 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.

A bit of calm has returned since officials from Russia and Ukraine held a round of ceasefire talks

 ➡The U.S. dollar resumed its rise against major peers as traders paused for breath

➡The safe-haven yen and Swiss franc pulled back after their biggest rallies in almost seven weeks

➡The Reserve Bank of Australia held the key rate steady at a record low today

The ruble tried to regain some stability on Tuesday after its crash to an all-time low, while the U.S. dollar resumed its rise against major peers as traders paused for breath amid the fast-moving Ukraine crisis. 

A modicum of calm has returned to currency markets since officials from Russia and Ukraine held an initial round of ceasefire talks overnight, four days after Russia invaded its neighbor, allowing some of the big moves from the start of the week to retrace after many positions were cleared out.

Who knows what happens next: Russia might become more aggressive, or they might agree on something, although what that could be is very difficult to predict. People are just watching the headlines, but we're at a point where unless there's some obvious negative news, the market is trying to stabilize a little. 

Economic Calendar

The safe-haven yen and Swiss franc pulled back after their biggest rallies in almost seven weeks against the dollar on Monday. The greenback added 0.16% to 115.145 yen, after registering a 0.47% slide overnight. It rose 0.20% to 0.9185 franc, following Monday's 0.95% retreat. The euro resumed its decline, dropping 0.25% to $1.1191, but well off the low of $1.1121 from the previous session. The risk-sensitive Australian dollar slipped 0.15% to $0.72525 after earlier touching a nearly one-week high of $0.72670. The Reserve Bank of Australia held the key rate steady at a record low on Tuesday, as expected, noting that the Ukraine conflict added a new source of uncertainty to the outlook. 

The instability will keep safe-haven currencies - including the dollar - bid, and the euro under pressure. The Ukraine crisis has seen traders pare bets for a 50 basis-point rate hike on March 16, with current odds at 11.4%. Atlanta Fed President Raphael Bostic said that he's not ruling out a half-point move.

What is Negative Balance Protection?

Euro

The single currency resumed its decline, dropping 0.25% to $1.1191, but well off the low of $1.1121 from the previous session. A modicum of calm has returned to currency markets since officials from Russia and Ukraine held an initial round of ceasefire talks overnight, four days after Russia invaded its neighbor. Overall, the EUR/USD traded with a low of 1.1140 and a high of 1.1245 before closing the day around 1.1216 in the New York session.

Yen

The Japanese Yen pulled back after its biggest rally in almost seven weeks against the dollar after Western nations ramped up sanctions against Russia over the weekend, including blocking some Russian banks from the SWIFT international payments system. Concerns about the Russia-Ukraine war have filtered to U.S. funding markets. Overall, the USD/JPY traded with a low of 114.84 and a high of 115.72 before closing the day around 114.98 in the U.S session.

Trading Forecasts

British Pound

The British Pound rose against the euro but was little changed against the dollar yesterday after Western nations imposed tough new sanctions on Russia for its invasion of Ukraine. Western allies acted over the weekend to block certain Russian banks’ access to the SWIFT international payments system. Overall, the GBP/USD traded with a low of 1.3326 and a high of 1.3430 before closing the day at 1.3416 in the New York session.

Canadian Dollar

The Canadian Dollar weakened against its US counterpart as the West imposed tougher sanctions against Russia over its Ukraine invasion and domestic data showed that the current account balance returned to a deficit in the fourth quarter. Canada posted a current account deficit of C$797 million in the fourth quarter. Overall, USD/CAD traded with a low of 1.2657 and a high of 1.2807 before closing the day at 1.2672 in the New York session.

Crypto Market

Australian Dollar

The Australian Dollar proving resilient today as high commodity prices and strength in domestic economies provided a buffer against geopolitical tensions. Australia as a net energy exporter is also set to gain from higher commodity prices, with liquefied natural gas and coal up sharply, while wheat, nickel, aluminum and iron ore were all firm. Overall, AUD/USD traded with a low of 0.7138 and a high of 0.7235 before closing the day at 0.7231 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 40 and lies below the neutral zone. In general, the pair has lost 0.96%.

Sterling-Yen

Currently, GBP/JPY is trading below 14, 50 and 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 42 reading and lies below the neutral zone. On the whole, the pair has lost 0.43%.

US Stock Markets

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 54 reading and lies above the neutral region. In general, the pair has lost 0.07%.

Euro-Sterling

This cross is currently trading above 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 46 and lies below the neutral region. Overall, the pair has lost 0.51%.

Sterling-Swiss

This cross is trading below 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 40 and lies below the neutral region. In general, the pair has lost 0.89%.

Best Forex and CFD Brokers

###

All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's 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.

Trade Zone Live Market Update

DIVE INTO THE MARKETS WITH BORIS AND KATHY OF BKFOREX Boris Schlossberg and Kathy Lien are Forex experts with over 20 years of experience in the industry. Both are often quoted by media outlets around the world including Reuters, Wall Street Journal, and Dow Jones as well as making regular appearances on CNBC. This live 30-minute session is a unique opportunity to plan your next trade in real-time, as Boris and Kathy look ahead at the potential moves taking shape as the weekend approaches. Find out what is hot in indices, forex, crypto, gold, and oil, as they discuss the financial assets they are watching, as well as the key levels to look out for when placing your stops.

Reserve your place for the first installment of March’s Trade Zone Live Market Update webinar series.

When: Wednesday, March 2nd, 2022 | 10 PM AEDT (11 AM GMT)

What: Live market analysis, technical and fundamental analysis, and a live Q&A

Hosted by: BK Forex leading market experts Boris Schlossberg and Kathy Lien

REGISTER HERE

Boris will be taking you through the fundamental market movements and setups made since Monday's Trading Week Ahead. At the end of the session, he will be available to answer all your market and trade-related questions in a live Q&A.

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

Powerful Smart Tools to integrate into your trading strategies

Russia is facing severe disruption to its exports of all commodities from oil to grains

Stock markets fell and oil prices surged today as investors grew increasingly concerned about the consequences of Russia's invasion of Ukraine. Asian markets ended the day on a mixed note. Hong Kong's Hang Seng lost as much as 1.6%, before closing down 0.2%. Japan's Nikkei 225 and Korea's Kospi erased earlier losses and were up 0.2% and 0.8%, respectively. 

China's Shanghai Composite was up 0.3%. On Wall Street, Dow futures were down 490 points, or 1.4% at 3:40 a.m. ET. S&P 500 futures fell 1.9% and NASDAQ futures were 1.7% lower. 

Economic Calendar

Global markets had been turbulent last week after Russian President Vladimir Putin launched an invasion of Ukraine, and the pain has spread beyond stocks. The Russian ruble plummeted as much as 40% Monday against the US dollar after Western countries announced new sanctions against Russia, including expelling certain Russian banks from SWIFT, the high-security network that connects thousands of financial institutions around the world.

Russian rouble plunged to a record low after Russia launched an invasion of Ukraine

Dow Jones Industrial Average

The Dow Jones Industrial Average unchanged 0%. The biggest gainers of the session on the Dow Jones Industrial Average were Johnson & Johnson, which unchanged 0% or 0 points to trade at 163.36 at the close. 3M Company unchanged 0% or 0 points to end at 147.62 and UnitedHealth Group Incorporated was unchanged 0% or 0 points to 467.81 in late trade. The biggest losers included Walt Disney Company, which unchanged 0% or 0 points to trade at 151.36 in late trade. Visa Inc. Class A unchanged 0% or 0 points to end at 222.69 and Microsoft Corporation 0% or 0 points to 287.93.

NASDAQ 100

The NASDAQ index is unchanged 0%. The top performers on the NASDAQ Composite were Inspirato Inc. which was unchanged from 0% to 46.00, Guardforce AI Co Ltd which was unchanged 0% to settle at 0.38, and CarGurus which was unchanged 0% to close at 34.44. The worst performers were Baudax Bio Inc. which was unchanged 0% to 4.2300 in late trade, Everbridge Inc. which was unchanged 0% to settle at 45.54, and LivePerson Inc. which was unchanged 0% to 24.59 at the close.

Wall Street is gauging the further effect of the conflict between Russia and Ukraine on asset prices

Oil

Oil prices jumped today 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. U.S. West Texas Intermediate (WTI) crude was up $4.19, or 4.6%, at $95.78 a barrel after hitting $99.10 in early trade. 

Moves by the U.S. and Europe to remove certain Russian banks from the SWIFT system have raised fears of a disruption to supply of some sort in the near term. The risk to supply is the greatest we've seen for some time and it comes in a tight market. 

Russia is facing severe disruption to its exports of all commodities from oil to grains after Western nations imposed stiff sanctions on Moscow and cut off some Russian banks from the SWIFT international payment system. Russian crude oil grades were already hammered in physical markets. Russia accounts for about 10% of the global oil supply. Goldman Sachs bank raised its one-month Brent price forecast to $115 a barrel from $95 per barrel previously.

Markets seemed to take cheer from news of talks between the U.S. and Russia about Ukraine

Precious and Base Metals

Gold prices reversed course to slide 1% today, and palladium also slipped, as Russia's invasion of Ukraine triggered sharp swings in the precious metals market. Spot gold slipped 0.9% to $1,887.05 per ounce, swinging between gains and losses through the session. U.S. gold futures settled 2% lower at $1,887.60. 

We think the price drop is premature, there is a risk of further escalation in the conflict and it could be just a temporary correction. Some market participants believe the sanctions imposed by the West on Russia are not tough enough. Prices of the safe-haven metal rallied more than 3% to as high as $1,973.96 in the last session after Russia attacked Ukraine. They retreated more than $90 from Thursday's highs. 

The dramatic rise followed by the just as dramatic fall is very technically motivated. A rebound in the global shares markets also weighed on the safe-haven metal, even as analysts expect market volatility to remain elevated. The risk premium and safe-haven demand will continue to support gold, but the upside is limited by the possible rate hike by the U.S. Federal Reserve this March. Palladium dropped 1.3% to $2,372.19. The metal touched $2,711.18 on Thursday, its highest since July. 

Elliot Waves trading idea for Gold, Silver and Gdx

Palladium is the precious metal most exposed to Russia's invasion of Ukraine. With Russia being the largest producer of palladium, the likelihood of ever-stricter sanctions on the country and its companies raises the prospect of a supply shortage boosting prices. Spot silver fell 0.6% to $24.05 per ounce and platinum eased 0.5% to $1,051.88.

Traditional Agricultures

Wheat futures tumbled on Friday in a profit-taking setback after peaking earlier at the highest level since mid-2008 as investors turned back to equities and traders assessed potential disruption to supplies from Russia’s invasion of Ukraine. Corn eased from Thursday’s eight-month peak, while soybeans slipped from a 9-1/2-year top in the previous session as traders liquidated long positions ahead of the weekend. The market continued to gauge the consequences on grain and oilseed supplies from the conflict between two of the world’s biggest exporters. There’s a big shift in money flow ahead of the weekend.

###

All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's 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.

Annual inflation hitting rates last seen four decades ago

• The U.S dollar dipped on Friday, giving back some of the strong gains from the previous day
• The greenback on Thursday notched its biggest one-day percentage gain since Nov. 10
• U.S inflation data seen as unlikely to make the Fed overly aggressive at its next policy meeting
• U.S President hit Russia with a wave of sanctions following that country's invasion of Ukraine

The U.S. dollar dipped on Friday, giving back some of the strong gains from the previous day, as investors gauged the latest round of sanctions on Russia and U.S. inflation data was seen as unlikely to make the Federal Reserve overly aggressive at its next policy meeting. 

The greenback on Thursday notched its biggest one-day percentage gain since Nov. 10 to reach 97.74, its highest since June 30, 2020. However, it gave back some gains after U.S. President Joe Biden hit Russia with a wave of sanctions following that country's invasion of Ukraine, but refrained from imposing sanctions on Russian President Vladimir Putin and disconnecting Russia from the SWIFT international banking system.

U.S. economic data showed consumer spending increased more than expected in January even as price pressures mounted, with annual inflation hitting rates last seen four decades ago, although the personal consumption expenditures price index increased 0.6% in January after rising 0.5% in December.

Economic Calendar

The revisions to income and spending data shows the economy was very resilient to Omicron and to high oil prices. Hopefully, the situation with Russia is short-lived, but even if oil prices stay elevated, the economy should have enough fundamental strength to tolerate high energy prices. 

The inflation numbers weren’t great, but at least the month-on-month inflation numbers aren’t moving higher. That should take some wind out from under the wings of the most hawkish Fed members. The dollar index fell 0.459%, with the euro up 0.59% to $1.1257. The euro fell to $1.105 on Thursday, its weakest against the greenback since June 1, 2020. Even with Friday's pullback, the dollar was still on track for a third straight week of gains. Before Thursday's jump -- which sent the dollar to its highest level since June 30, 2020 -- the greenback had been subdued in recent weeks, as rising tensions in Ukraine fueled expectations the Fed may be less aggressive in tightening policy as it attempts to rein in inflation. Expectations for at least a 50-basis-point interest rate hike at its March meeting have fallen to 25%

Elliot Waves trading idea for Gold, Silver and Gdx

Euro

The single currency sank more than 1% after Western nations announced a harsh set of sanctions to punish Russia for its invasion of Ukraine, including blocking some banks from the SWIFT international payments system. Russian President Vladimir Putin ordered his military command to put nuclear-armed forces on high alert on Sunday. Overall, the EUR/USD traded with a low of 1.1274 and a high of 1.1273 before closing the day around 1.1271 in the New York session.

Yen

The Japanese Yen gained as the U.S dollar dipped, giving back some of the strong gains from the previous day, as investors gauged the latest round of sanctions on Russia and U.S. inflation data was seen as unlikely to make the Fed overly aggressive at its next policy meeting. U.S economic data showed consumer spending increased more than expected in January. Overall, the USD/JPY traded with a low of 115.12 and a high of 115.74 before closing the day around 115.52 in the U.S session.

British Pound

The British Pound traded lower as the UK consumer confidence survey, compiled by Gfk recorded its sharpest month-on-month drop in February since the start of the pandemic. The figure has been trending lower since November and dropped from -19 to -26. UK consumers expressed concern over energy and food price rises. Overall, the GBP/USD traded with a low of 1.3364 and a high of 1.3471 before closing the day at 1.3411 in the New York session.

Canadian Dollar

The Canadian Dollar strengthened as domestic data showed wholesale trade rising in January and currency traders walked back some of the large moves seen the day before in reaction to Russia's invasion of Ukraine. The price of oil, one of Canada's major exports, gave back some recent gains, with U.S crude oil futures falling 1.1% to $91.76 a barrel. Overall, USD/CAD traded with a low of 1.2692 and a high of 1.2818 before closing the day at 1.2702 in the New York session.

Australian Dollar

The Australian Dollar took a knock today as the escalating crisis in Ukraine clouded the outlook for global growth and inflation, overshadowing strength in Australian economic data. Higher commodity prices were supporting the Aussie given Australia was a net energy exporter, though record petrol prices at home will act as a tax on consumers and add to inflation concerns. Overall, AUD/USD traded with a low of 0.7138 and a high of 0.7235 before closing the day at 0.7231 in the New York session.

Russian rouble plunged to a record low after Russia launched an invasion of Ukraine

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 40 and lies below the neutral zone. In general, the pair has gained 0.73%.

Sterling-Yen

Currently, GBP/JPY is trading below 14, 50 and 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 42 reading and lies below the neutral zone. On the whole, the pair has gained 0.30%.

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 54 reading and lies above the neutral region. In general, the pair has gained 1.01%.

Euro-Sterling

This cross is currently trading above 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 46 and lies below the neutral region. Overall, the pair has gained 0.44%.

Sterling-Swiss

This cross is trading below 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 40 and lies below the neutral region. In general, the pair has gained 0.26%.

February has proved to be the perfect storm for gold - with inflation, falling stock markets, and geopolitical uncertainty

###

All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's 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.