EURUSD retakes 1.10 ahead of ECB

"Bottoms in the investment world don't end with four-year lows; they end with 10- or 15-year lows." — Jim Rogers

 

 

HEADLINES

 

 

• Euro rallies as commodity prices ease and investors embrace risk
• Biden orders government to study digital dollar, other cryptocurrency risks
• Oil slides 7% as UAE calls for OPEC boost amid Russian supply shock
• Gold, palladium beat fast retreat as risky assets bounce back
• World stocks rise, oil retreats in 'less panicked' trading session
• Fed not expected to announce the start of the balance sheet reductions next week – Wells Fargo
• EURJPY Near Term: Upside favored

 

 

FOREX

 

 

Euro rallies as commodity prices ease and investors embrace risk

 

The euro gained more than 1% against the dollar on Wednesday as risk appetite returned to financial markets and commodity prices eased from recent peaks that were driven by Russia's ongoing invasion of Ukraine.

After touching a 22-month low on Monday of $1.0806, the euro was last at $1.1019, up 1.15% on the day, after a report citing unnamed officials said the EU was discussing joint bond issuance to finance energy and defence spending.

 

Biden orders government to study digital dollar, other cryptocurrency risks

 

U.S. President Joe Biden signed an executive order on Wednesday requiring the government to assess the risks and benefits of creating a central bank digital dollar, as well as other cryptocurrency issues, the White House said.

Biden's order will require the Treasury Department, the Commerce Department and other key agencies to prepare reports on "the future of money" and the role cryptocurrencies will play.

 

 

COMMODITIES

 

 

Oil slides 7% as UAE calls for OPEC boost amid Russian supply shock

 

Oil slid over 7% 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 invasion of Ukraine.

Oil was already pulling back earlier in the session from a rally to peaks not seen in more than a decade, as some investors' fears over a disruption in Russian supplies eased and the International Energy Agency said oil reserves could be tapped further.

 

Gold, palladium beat fast retreat as risky assets bounce back

 

Palladium slid as much as about 9% on Wednesday to lead a sharp reversal in precious metals, while gold shed over 3%, as a retreat in oil prices helped riskier assets rebound after sharp declines spurred by the Ukraine war.

Palladium , used by automakers in catalytic converters to curb emissions, fell 3.2% to $3,080.04 per ounce after hitting a record high of $3,440.76 on Monday driven by fears of supply disruptions from top producer Russia.

 

 

STOCKS

 

 

World stocks rise, oil retreats in 'less panicked' trading session

 

Global stock markets rallied in Europe and North America on Wednesday after three straight days of selling, and oil prices retreated from the peaks scaled over the last week as investors digested the news of Russian oil import bans.

Moscow accused the United States on Wednesday of declaring an economic war on Russia, and said it was considering a response to the U.S. ban on Russian oil and energy imports.

 

 

ANALYSIS

 

 

Fed not expected to announce the start of the balance sheet reductions next week – Wells Fargo

 

“We do not expect the FOMC to announce the start of balance sheet reductions at the March 16 meeting. Numerous policymakers have made clear that the Fed will only begin reducing the size of its balance sheet after rate hikes have commenced. That said, it is clear that discussions have ramped up in recent months regarding the timing, size and composition of balance sheet shrinkage. We do not anticipate any major new balance sheet policies in the meeting materials, and we suspect Chair Powell's press conference will simply reinforce that the expectation that the Federal Reserve will begin reducing its Treasury and mortgage-backed security holdings at some point in the near future.”

 

 

CHART

 

 

EURJPY Near Term: Upside favored

 

Technical View: Long position above 125.5. Target 127.5. Conversely, break below 125.5, to open 125.

Comments: The pair breaks above the resistance.

Source: Trading Central
 

 

CALENDAR

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar

SOURCES

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/fed-not-expected-to-announce-the-start-of-the-balance-sheet-reductions-next-week-wells-fargo-202203091629
https://www.reuters.com/business/oil-extends-rally-after-us-bans-russian-imports-prompting-supply-fears-2022-03-09/
https://www.reuters.com/business/unloved-euro-catches-breath-ahead-ecb-2022-03-09/
https://www.reuters.com/business/finance/biden-orders-government-study-digital-dollar-other-cryptocurrency-risks-2022-03-09/
https://www.reuters.com/markets/europe/gold-slips-stronger-dollar-yields-palladium-gains-2022-03-09/
https://www.reuters.com/markets/europe/global-markets-wrapup-1-2022-03-09/