EURUSD hits 3-week low in risk-off mood

“Don’t be afraid to be a loner but be sure that you are correct in your judgement.” - Walter J. Schloss

 

 

HEADLINES

 

 

• Euro hits three-week low, Aussie skids as Putin orders troops into Ukraine
• BOJ won't roll back stimulus soon but watching rising costs, says Kuroda
• Gold rises as escalating Ukraine crisis spurs safe-haven bids
• Oil rises as U.S. says Russian attack on Ukraine may occur soon
• Stocks dive, oil surges as Putin issues warning on Ukraine
• S&P 500 Index to suffer a substantial drop towards 3855/15 on a break below 4199 – Credit Suisse
• EURUSD Short Term: Downside favoured

 

 

FOREX

 

 

Euro hits three-week low, Aussie skids as Putin orders troops into Ukraine

 

The euro sank to a three-week low to the safe-haven dollar on Thursday while riskier commodity-linked currencies like the Australian dollar weakened amid intensifying fears that a full-scale Russian invasion of Ukraine was imminent.

The rouble held near a two-year trough, sterling touched its weakest level in more than a week, and bitcoin sank to a one-month low after Russian President Vladimir Putin said he had authorised military action in Ukraine's breakaway region of Donbass.

 

BOJ won't roll back stimulus soon but watching rising costs, says Kuroda

 

The Bank of Japan has no immediate plans to roll back its massive stimulus but will scrutinise how rising import costs could affect public perceptions on the inflation outlook, Governor Haruhiko Kuroda said on Thursday.

Kuroda also said the yen was moving in line with economic fundamentals, countering recent growing criticism among politicians the BOJ's ultra-low interest rates and a subsequent yen decline were pushing up households' living costs.

 

 

COMMODITIES

 

 

Gold rises as escalating Ukraine crisis spurs safe-haven bids

 

Gold prices rose on Thursday towards a nine-month high hit earlier this week, as investors sought refuge in safe havens after Ukraine declared an emergency and the West imposed more sanctions on Russia for sending troops into eastern Ukraine.

Spot gold rose 0.3% to $1,912.40 per ounce by 0035 GMT, after having hit its highest since June 1 at $1,913.89 per ounce on Tuesday.

 

Oil rises as U.S. says Russian attack on Ukraine may occur soon

 

Oil prices gained more than $1 on Thursday, trading below seven-year highs hit earlier this week, as fresh developments on the Russia-Ukraine crisis sparked concerns that supported prices.

Brent crude rose 73 cents, or 0.75%, to $97.57 a barrel at 0130 GMT, after soaring as high as $98.08.

 

 

STOCKS

 

 

Stocks dive, oil surges as Putin issues warning on Ukraine

 

Global stocks and U.S. bond yields dived on Thursday, while the dollar, gold and oil prices rocketed higher after Russian President Vladimir Putin issued a blistering warning against Ukraine and authorised special military operations in Ukraine's Donbass region.

Several explosions were heard in the Ukrainian capital, Kyiv, before dawn, after an initial series of sounds similar to artillery fire, a Reuters witness reported, shortly after Russia announced the military operation.

 

 

ANALYSIS

 

 

S&P 500 Index to suffer a substantial drop towards 3855/15 on a break below 4199 – Credit Suisse

 

“We maintain our negative outlook for a retest of a cluster of supports at 4223/4199. Although a fresh hold here should be allowed for, downside risks are seen increasing and with weekly RSI momentum maintaining a large top we are now biassed to a break lower.”

“Below 4199 on a weekly closing basis would complete a large ‘head & shoulders’ top to warn of a further fall to the 38.2% retracement of the entire 2020/2021 bull trend at 3855/15.”

“A close above 4595 remains needed to ease the threat of a top.”

 

 

CHART

 

 

EURUSD Short Term: Downside favoured

 

Technical View: Short position below 1.141. Target 1.128. Conversely, break above 1.141, to open 1.145.

Comments: The pair remains under pressure. Further weakness favoured.

Source: Trading Central

 

 

CALENDAR

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar

SOURCES

https://www.fxstreet.com/economic-calendar
https://www.reuters.com/world/india/euro-skids-versus-safe-havens-ukraine-tensions-ramp-up-2022-02-24/
https://www.reuters.com/markets/currencies/boj-wont-roll-back-stimulus-soon-watching-rising-costs-says-kuroda-2022-02-24/
https://www.reuters.com/markets/europe/gold-rises-escalating-ukraine-crisis-spurs-safe-haven-bids-2022-02-24/
https://www.reuters.com/business/energy/oil-rises-us-says-russian-attack-ukraine-may-occur-soon-2022-02-24/
https://www.reuters.com/markets/europe/global-markets-wrapup-1pix-2022-02-24/