Asian shares surged, tracking Wall Street's overnight gains as planned diplomatic talks

US stock markets: U.S. stocks surged yesterday led by financial and tech shares, rebounding from several down days as oil prices pulled back sharply and investors gauged developments in the Ukraine crisis. 

Oil tumbled on Wednesday after reports that the United Arab Emirates will call on fellow OPEC members to boost production, potentially easing some of the supply concerns caused by sanctions on Russia after its conflict with Ukraine. A steep rise in oil and other commodities has sparked concerns about a further jolt to rising inflation and the potential for slowing economic growth. Financials and the heavyweight technology group were among the top-gaining S&P 500 sectors.

Economic Calendar

Energy, which has been the standout sector performer in 2022, fell as benchmark Brent crude slid to around $110 a barrel from over $130 earlier in the week. Travel and leisure stocks, which have been hit hard recently, also soared, including shares of Carnival Corp and United Airlines Holdings.

Dow Jones Industrial Average

The Dow Jones Industrial Average gained 2.00%. The best performers of the session on the Dow Jones Industrial Average were Salesforce.com Inc., which rose 5.77% or 11.08 points to trade at 203.16 at the close. Meanwhile, American Express Company added 5.37% or 8.60 points to end at 168.65 and Nike Inc. was up 4.74% or 5.74 points to 126.95 in late trade. The worst performers of the session were Chevron Corp, which fell 2.50% or 4.26 points to trade at 166.27 at the close. Verizon Communications Inc. declined 0.32% or 0.17 points to end at 53.08 and McDonald’s Corporation was down 0.14% or 0.32 points to 222.47.

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NASDAQ 100

The NASDAQ index climbed 3.59%. The top performers on the NASDAQ Composite were Direct Digital Holdings Inc. which rose 107.50% to 2.49, Revelation Biosciences Inc. which was up 83.82% to settle at 1.70 and Sentage Holdings Inc. which gained 47.27% to close at 1.62. The worst performers were Hycroft Mining Holding Corporation which was down 37.00% to 0.63 in late trade, Natera Inc. which lost 32.79% to settle at 36.80 and Cyren Ltd which was down 31.89% to 7.09 at the close.

Oil price - Crude Oil market, Brent Oil market

Oil prices rose on Thursday in volatile trade following a sharp drop in the previous session as the market contemplated whether major producers would boost supply to help plug the gap in output from Russia due to sanctions for its invasion of Ukraine. Brent crude futures were up $2.53, or 2.28%, at $113.67 a barrel after trading in about a $5 range. 

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The benchmark contract slumped 13% in the previous session in its biggest one-day drop in nearly two years. U.S crude futures were up $1.64, or 1.51%, at $110.34 a barrel, after trading in a $4 range. The contract had tumbled 12.5% in the previous session in the biggest daily decline since November. Uncertainty over where and when supply will come from to replace crude from the world's second-largest exporter Russia in a tight market has led to wide-ranging forecasts for oil prices between $100 and $200 a barrel. 

Comments from the UAE energy minister and the country's ambassador to Washington sent conflicting signals.

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Precious and Base Metals - Gold price, Silver price, Palladium price

Gold prices extended declines today after recording their worst drop in nearly 14 months in the previous session as a retreat in oil prices and planned diplomatic talks between Russia and Ukraine boosted risk appetite. Spot gold fell 0.5% at $1,981.80 per ounce after tumbling as much as 3% on Wednesday. U.S gold futures shed 0.4% to $1,980.90. 

Elliott waves trading idea for Copper update

Suspect, there are still plenty of long positions put on in the last couple of days out there that are still being squeezed. With no new Ukraine headlines to change the dynamic, and with equities rallying strongly in Asia, the downward pressure on gold continues. A rush to safe-haven assets due to the Ukraine crisis has led to a rally in gold prices, which have jumped about 8.5% in the last two weeks, bringing them closer to their record levels hit in August 2020. 

Asian shares surged, tracking Wall Street's overnight gains as planned diplomatic talks between Russia and Ukraine buoyed sentiment. However, with Russia being a major commodity producer, sanctions are intensifying the stagflation risk. We believe heightened geopolitical risks and higher inflation will support gold prices. A steep rise in oil and other commodities has sparked concerns about a further jolt to rising inflation and the potential for slowing economic growth. 

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Investors now await the February U.S. consumer price index data later in the day, ahead of the Federal Reserve's next policy statement on March 16. Palladium, used by automakers in catalytic converters to curb emissions, slipped 1.4% to $2,897.62 per ounce. The metal hit a record high of $3,440.76 on Monday, driven by fears of supply disruptions from top producer Russia.

Traditional Agricultures - Corn futures, Wheat futures,  Soybean futures

Wheat futures hit their daily trading limit on the downside for the second straight day on Wednesday, as the U.S government cut domestic wheat exports and global markets continue to be roiled by supply disruptions stemming from Russia’s invasion of Ukraine. Soybean futures turned lower after the U.S Department of Agriculture (USDA) forecast domestic and world soybean supplies will be smaller than previously thought but still came in above the average of market forecasts. Corn futures slid to session lows as oil markets dropped sharply.

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The euro was trading at $1.1047 after jumping 1.6% yesterday, its best day

• The main event due today is U.S inflation data, a particular focus given the Fed meets next week
• Sterling was steady having jumped 0.65% overnight along with the euro
• Traders now await a meeting of the European Central Bank later in the day

Forex market

The euro held most of its overnight gains today, having posted its steepest daily jump in nearly six years after a meeting between Ukraine's and Russia's foreign ministers and easing oil prices took some of the recent panics out of markets. 

Traders now await a meeting of the European Central Bank later in the day for any signs of how Russia's invasion of Ukraine will affect monetary policy. U.S inflation figures are also due, which could further guide expectations for the Federal Reserve's meeting next week. 

The euro was trading at $1.1047 after jumping 1.6% yesterday, its best day since June 2016, along with gains in European stocks and a selloff in bonds. The common currency had dropped to a 22-month low of $1.0804 earlier in the week, weighed down by the impact of Russia's invasion of Ukraine on European growth.

Economic Calendar

 A glance across the market, in all things eurozone especially, could leave any casual observer forgiven for assuming that the war in Ukraine might have ended overnight. Not so, sadly. They attributed the euro's gains to some optimism ahead of a meeting between Russia and Ukraine's foreign ministers - the first meeting between the two since Russia invaded Ukraine two weeks ago - and reports that the European Union was discussing bond issuance to finance energy and defense spending.

Elsewhere, sterling was steady at $1.3163 having jumped 0.65% overnight along with the euro, while the safe-haven yen was at 116.09 per dollar, its lowest in a month. The dollar index was at 98.163, after tumbling 1.2% overnight amid the euro's surge, and hurt, along with the yen, by a rise in sentiment towards riskier assets like equities. The other main event due today is U.S inflation data, a particular focus given the Fed meets next week and is widely expected to raise its benchmark overnight interest rate by a quarter of a percentage point.

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Euro

The single currency held most of its overnight gains today, having posted its steepest daily jump in nearly six years after a meeting between Ukraine's and Russia's foreign ministers and easing oil prices took some of the recent panics out of markets. Traders now await a meeting of the European Central Bank later in the day. Overall, the EUR/USD traded with a low of 1.0884 and a high of 1.0665 before closing the day around 1.0934 in the New York session.

Yen

The Japanese Yen traded lower yesterday. Japanese investors in February sold the most overseas debt in a month in nearly two years on concerns over monetary tightening by the world's major central banks and an escalation in the Russia-Ukraine conflict. The total sales of foreign bonds and equities in the first two months of this year stood at 2.46 billion yen. Overall, the USD/JPY traded with a low of 114.63 and a high of 115.53 before closing the day around 114.83 in the U.S session.

British Pound

The British Pound rebounded against the U.S. dollar in yesterday’s session as a drop in oil prices and an upswing in sentiment pushed the greenback rally triggered by Russia’s invasion of Ukraine into reverse. European and U.S. stock markets were staging a tentative rebound after four straight sessions of heavy losses. Overall, the GBP/USD traded with a low of 1.3200 and a high of 1.3353 before closing the day at 1.3238 in the New York session.

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Canadian Dollar

The Canadian Dollar strengthened against its U.S counterpart yesterday as global equity markets rallied after they were pressured by Russia's invasion of Ukraine and the price of oil pulled back from a 14-year high. Global oil prices posted their biggest plunge since the early pandemic days nearly two years ago. Overall, USD/CAD traded with a low of 1.2667 and a high of 1.2789 before closing the day at 1.2735 in the New York session.

Australian Dollar

The Australian Dollar suffering a case of whiplash today as a sudden change in market mood saw stocks swing back in the black and commodity prices ease, leaving the near-term direction uncertain. In Australia, Goldman Sachs became the latest bank to bring forward its forecast for rate hikes, predicting moves in August and September rather than just one hike in November. 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.

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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 1.70%.

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 1.35%.

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 0.06%.

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 0.35%.

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 0.86%.

Trading Signals

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Elliot Waves trading idea for S&P500 and Dow Jones UPDATE

Hello traders and investors. I am Radi Valov, a professional trader and today I will share with you an update to my analysis of S&P500 and Dow Jones. Anyone who wants to see larger time frames can see them in my previous Elliot waves market analysis from:

25.02.2022: Elliot Waves trading idea for SP500 DowJones and Nasdaq 

15.02.2022: Elliot waves trading idea for SP500 and the Dow Jones 

04.02.2022: Elliott waves signal for S&P500  

31.01.2022: Elliott waves signals for SP500 and Dow Jones

S&P500-Daily Chart

Ever since my previous analysis, I have considered the correction for wave 4 as completed with the bottom in 4100 for SP500, 32200 for Dow Jones. From there, upward movements developed, which have a rather complex structure and can be considered as the initial diagonal for wave 1 (with red on the trading chart), the alternative scenarios allow this upward movement to be the last intermediate X wave (with blue on the trading chart). 

According to the first option, the price has already found support and we will not see a new SELL but will start a new upward movement with an initial target area around 4500-4580 for SP500,34500-35000 for Dow Jones.

The alternative scenario allows in the coming days to see a final downward movement for wave Z that will eventually reach the area around 3980-4040 for SP500 and 31800-32100 for Dow Jones.

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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.

The crisis in Ukraine is giving the Bank of Japan a headache not facing major central banks

• The euro in yesterday’s trading session climbed from 22-month lows against the U.S dollar
• Investors were also hesitant to sell the euro ahead of a European Central Bank policy meeting
• The British pound edged higher against the U.S. dollar but was little changed against the euro

Forex market

The euro today climbed from 22-month lows against the U.S. dollar hit the previous session, lifted in part by expectations that the eurozone will increase fiscal spending to help offset the economic effects of Russia's invasion of Ukraine. 

Investors were also hesitant to sell the euro ahead of a European Central Bank policy meeting on Thursday. The prospect of stagflation has prompted economists to suggest policymakers might delay rate hikes until late in the year. 

Europe's single currency, which has been pummeled since the start of the latest geopolitical turmoil, also gained versus other currencies such as the yen, Swiss franc and sterling. Bloomberg News reported today that the European Union plans as soon as this week to jointly issue bonds on a potentially massive scale to finance energy and defense spending. 

Economic Calendar

There is a risk that the ECB president may acknowledge euro weakness as among the headwinds facing the bloc's economy. That's been enough to offer the euro at least a momentary reprieve. In addition, the international oil benchmark Brent crude backed off yesterday's 14-year high of just under $140 per barrel, which helped boost euro sentiment. Brent was still up 4.3% on Tuesday at $128.50 per barrel. The euro regained some ground after five sessions of declines versus the dollar. It was up more than a cent from a trough of $1.0806 yesterday, its lowest since March 2020 when the COVID-19 pandemic gripped Europe. 

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The euro briefly traded at parity with the Swiss franc on Monday for the first time in seven years. It rose 0.9% on Tuesday to 1.0134 francs. Traders are expecting choppy markets over the next few months, with euro/dollar volatility gauges at their highest since the market chaos of March 2020. As the euro gained, the dollar index, which measures the greenback against a basket of six global peers, was flat to slightly lower at 99.15. That said, the safe-haven dollar remains an in-demand asset despite today's slight pullback. 

Since Russia's invasion on Feb. 24, the dollar has gained around 3.3% as the crisis has intensified. Besides the commodities' rally, the war and subsequent Western sanctions have crushed Russian assets, with the rouble falling to a record low of 160 to the dollar in erratic offshore trade yesterday.

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Euro

The single currency climbed from 22-month lows against the U.S. dollar hit the previous session, lifted in part by expectations that the eurozone will increase fiscal spending to help offset the economic effects of Russia's invasion of Ukraine. Investors were also hesitant to sell the euro ahead of a European Central Bank policy meeting on Thursday. Overall, the EUR/USD traded with a low of 1.0884 and a high of 1.0665 before closing the day around 1.0934 in the New York session.

Yen

The Japanese Yen traded lower as the crisis in Ukraine is giving the BoJ a headache not facing other major central banks, forcing it to maintain a more dovish stance on monetary policy despite rising inflationary pressures and a dearth of tools to combat another economic downturn. Unlike other advanced economies, Japan is still shackled by COVID-19 curbs. Overall, the USD/JPY traded with a low of 114.63 and a high of 115.53 before closing the day around 114.83 in the U.S session.

British Pound

The British Pound edged higher against the U.S dollar today but was little changed against the euro after an earlier bounce in the single currency proved short-lived. The Sterling has been at the mercy of dollar strength in recent days, which led to the currency pair dropping to its lowest level since Nov. 2020 during Asia-Pacific trading hours today. Overall, the GBP/USD traded with a low of 1.3200 and a high of 1.3353 before closing the day at 1.3238 in the New York session.

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Canadian Dollar

The Canadian Dollar fell to its lowest level this year against the greenback as the U.S banned Russian oil imports, adding to an uncertain outlook for the global economy. U.S crude prices settled up 3.6%. Oil is one of Canada's major exports but the historic link between the Canadian dollar and energy prices has weakened during the Russia-Ukraine crisis. Overall, USD/CAD traded with a low of 1.2667 and a high of 1.2789 before closing the day at 1.2735 in the New York session.

Australian Dollar

The Australian Dollar surrendered some ground today amid concerns booming commodity prices would drag on global growth, and Australia's central bank sounded in no rush to raise rates. Reserve Bank of Australia (RBA) Governor Philip Lowe warned the jump in commodity prices would likely lift inflation further and could feed through to wage claims. 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.

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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 1.70%.

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 1.35%.

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 0.06%.

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 0.35%.

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 0.86%.

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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.

The Russia-Ukraine war has exposed a weak spot for Europe's economy

US stock markets: U.S. stocks ended sharply lower in yesterday’s session as the United States and European allies considered banning Russian oil imports, leading oil and other commodity prices to soar with investors worried about how it will dent growth. 

Oil prices rose to their highest levels since 2008 and are up more than 60% since the start of 2022. Brent rose $5.10, or 4.3%, to settle at $123.21 a barrel, and U.S West Texas Intermediate (WTI) rose $3.72, or 3.2%, to settle at $119.40 a barrel. All major stock indexes posted sharp losses. The Dow Jones Industrial Average held up the best of the main indexes, posting a loss of 2.4%, while the Nasdaq Composite fell the most, ending down 3.6%. Of the 11 major S&P 500 sectors, nine ended in the red. 

Economic Calendar

Consumer discretionary, communications services, and information technology were the weakest groups. The energy was the best performer, with utilities also posting solid gains of more than 1%.

The Russia-Ukraine war has exposed a weak spot for Europe's economy - the reliance on energy imports - and with crude at 2008 levels.

Dow Jones Industrial Average

The Dow Jones Industrial Average lost 2.37% to hit a new 6-months low. The best performers of the session on the Dow Jones Industrial Average were Chevron Corp, which rose 2.14% or 3.39 points to trade at 162.04 at the close. Meanwhile, Johnson & Johnson added 1.61% or 2.73 points to end at 172.21 and Amgen Inc. was up 0.62% or 1.45 points to 234.36 in late trade. The worst performers of the session were American Express Company, which fell 7.99% or 13.82 points to trade at 159.13 at the close. Boeing Co declined 6.45% or 11.67 points to end at 169.17 and Nike Inc. was down 5.14% or 6.74 points to 124.44.

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NASDAQ 100

The NASDAQ index lost 3.62%. The top performers on the NASDAQ Composite were Imperial Petroleum Inc. which rose 121.89% to 7.50, Oceanpal Inc. which was up 101.60% to settle at 1.26 and Marine Petroleum Trust which gained 69.85% to close at 12.11. The worst performers were Atreca Inc. which was down 38.27% to 3.21 in late trade, Inspirato Inc. which lost 37.26% to settle at 26.65 and IO Biotech Inc. which was down 31.77% to 4.21 at the close.

Oil price - Crude Oil market, Brent Oil market

Oil prices jumped to their highest levels since 2008 as the United States and European allies considered banning Russian oil imports while it looked less likely that Iranian crude would return swiftly to global markets. Brent rose $5.1, or 4.3%, to settle at $123.21 a barrel, and U.S. WTI rose $3.72, or 3.2%, to settle at $119.40 a barrel. 

Negative Balance Protection?

During the session, both benchmarks hit the highest since July 2008 with Brent hitting $139.13 a barrel and WTI $130.50. Global oil prices have spiked about 60% since the start of 2022, raising concerns about global economic growth and stagflation. China, the world's No. 2 economy, is targeting slower growth of 5.5% this year. On Sunday, U.S. Secretary of State said the United States and European allies were exploring banning imports of Russian oil. 

The White House on Monday said President Joe Biden has not made a decision on a ban on Russian oil imports. Oil prices could climb to over $300 per barrel if the U.S and EU ban imports of oil from Russia, Deputy Prime Minister Novak said.

Precious and Base Metals - Gold price, Silver price, Palladium price

Gold slid from the key $2,000-mark today as investors paused to reassess the Russia-Ukraine conflict after talks hardly advanced, with a strong U.S dollar weighing further on the safe-haven metal. Spot gold was down 0.5% at $1,988.78 per ounce, after scaling a 1-1/2-year peak of $2,002.40 yesterday. U.S gold futures were down 0.2% to $1,992.40. 

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Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.8% to 1,062.7 tonnes on Monday - their highest since March 2021. It's not simply a case of the West turning a switch and banning Russian imports. It's going to take a lot longer than that. So, markets are readjusting, absorbing all the information. 

There's a little bit less demand for gold, but at the same time it's not really giving back its gains. Russian negotiators said they did not have positive developments to report following talks with Ukraine. The dollar index held close to a 21-month peak hit on Monday, making gold less attractive for holders of other currencies, following news of a potential U.S oil import ban on Russia. 

Spot gold may retest a resistance at $1,999 per ounce, a break above could lead to a gain at $2,028, according to Reuters' technical analyst Wang Tao. Palladium was up 0.7% to $3,019.22 per ounce but was off an all-time high of $3,440.76 scaled on Monday. 

The auto-catalyst metal prices have rocketed 80% this year to all-time highs as financial sanctions on Russia could disrupt shipments and worsen a supply shortage. Among other metals, spot silver fell 0.7% to $25.47 per ounce, while platinum rose 0.7% to $1,130.78.

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Traditional Agricultures - Corn futures, Wheat futures,  Soybean futures

Wheat futures gapped higher yesterday, notching a limit-up move as it neared an all-time high on concerns that global supply shipments will be disrupted until the Russia-Ukraine conflict is resolved. 

European wheat has already hit record highs as deepening Western sanctions against Russia fueled concerns about exports from the Black Sea region. The two countries combined account for about 29 percent of wheat exports. Soybean futures ended slightly weaker after trading both sides of unchanged. Corn futures were weaker, easing from the 9-1/2-year high hit on Friday after some rains in key growing areas of South America.

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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.

The conflict and subsequent Western sanctions have crushed Russian assets

• The euro was pinned near a 22-month low as the war in Ukraine darkens Europe's economic outlook
• Sterling roared to 5-1/2 year high versus the euro but dropped to its weakest since 2020 against the dollar
• European currencies have been falling fast since Russia invaded Ukraine
• Investors have pared back their expectations for policy tightening from the Bank of England

Forex market

The euro was pinned near a 22-month low today as the war in Ukraine darkens Europe's economic outlook, while commodity currencies took a breather in their weeks-long rally. The euro attempted a bounce in Asia, after six straight sessions of selling, but at $1.0859, it was not carried terribly far from yesterday's trough of $1.0806. 

The common currency is down 4% on the dollar since Russia launched what it calls a "special military operation" in Ukraine where fighting is showing no signs of abating. It flirted with parity on the Swiss franc yesterday for the first time in seven years and traders are bracing for a bumpy ride ahead, with euro/dollar volatility gauges at their highest since the market chaos of March 2020. 

Economic Calendar

Russia-Ukraine Peace talks have made scant progress and though Germany's opposition to a ban on Russian energy imports knocked oil futures from Monday's 14-year peak, analysts expect the supply shock to persist and hurt growth. Barring a clear improvement in the geopolitical conflict, the playbook for the pair should be to sell on rallies. In this case, expect selling pressure to pick up above 1.0900. A further downside cannot be ruled out, with the European Central Bank (ECB) decision on Thursday unlikely to provide sustained relief.

The ECB meets on Thursday with the specter of stagflation prompting economists to figure that policymakers might delay rate hikes until late in the year. Sterling, which had been battered along with the euro was also parked near the 16-month low it struck yesterday, last buying $1.3121. The yen dipped slightly to 115.44 per dollar with surging oil import costs pushing Japan to its biggest current account deficit since 2014 January. 

CFD News: US Stock Markets

Besides commodities' parabolic rally, the conflict and subsequent Western sanctions have crushed Russian assets, with the ruble sliding to a record low of 160 to the dollar in erratic offshore trade yesterday. Commodities and exporters' currencies paused for breath today.

Euro

The single currency was pinned near a 22-month low today as war in Ukraine darkens Europe's economic outlook, while commodity currencies took a breather in their weeks-long rally. The common currency is down 4% on the dollar since Russia launched what it calls a "special military operation" in Ukraine where fighting is showing no signs of abating. Overall, the EUR/USD traded with a low of 1.0884 and a high of 1.0665 before closing the day around 1.0934 in the New York session.

Yen

The Japanese Yen reversed almost all of its earlier gains. Japan recorded its largest current account deficit since the start of 2014 in January as a jump in oil import costs offset gains in investment income, with continuing uncertainty due to the Ukraine crisis and COVID-19 pandemic. Japan posted a current account deficit of 1.1887 trillion yen. Overall, the USD/JPY traded with a low of 114.63 and a high of 115.53 before closing the day around 114.83 in the U.S session.

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British Pound

The British Pound roared to another 5-1/2 year high versus the euro but dropped to its weakest since December 2020 against the dollar, as another volatile session sent investors to buy dollars. European currencies have been falling fast since Russia invaded Ukraine as investors worry about the impact on their economies of the war. Overall, the GBP/USD traded with a low of 1.3200 and a high of 1.3353 before closing the day at 1.3238 in the New York session.

Canadian Dollar

The Canadian Dollar drifted aimlessly despite soaring oil prices and renewed risk-aversion trading in other G-10 currencies. The U.S is considering a bipartisan bill to ban imports of Russian oil and there is talk that the rest of the Western nations including the European Union may follow suit. Politicians are outraged by reports the Russian military is targeting civilians. Overall, USD/CAD traded with a low of 1.2667 and a high of 1.2789 before closing the day at 1.2735 in the New York session.

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Australian Dollar

The Australian Dollar edging higher again today as wild swings in oil prices made for erratic markets and analysts revised up expectations for rate hikes at home. While the Antipodeans were still drawing support from sky-high commodity prices, these also act as a tax on consumers and a brake on world growth that might not be positive for risk-sensitive currencies in the longer run. 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 1.70%.

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 1.35%.

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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 0.06%.

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 0.35%.

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 0.86%.

Elliott waves forex trading idea for AUD/USD

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