Geopolitics drives oil even higher

“Always deliver more than expected.” — Larry Page

 

 

 

HEADLINES

 

 

 

• Ukraine tensions, Fed hike talk drag on euro
• Dollar gains as Ukraine worries rise, Bullard reiterates rate comments
• Gold futures mark highest settlement since mid-November
• Geopolitics, not fundamentals, driving oil higher, UAE energy min says
• U.S. stocks slide as Russia-Ukraine tensions come to boil
• AUD/USD to drop gradually over the next months – Danske Bank
• GBPUSD Near Term: Downside favoured

 

 

 

FOREX

 

 

 

Ukraine tensions, Fed hike talk drag on euro

 

 

Tensions in eastern Europe weighed on the euro on Tuesday and pushed demand for the dollar and the safe-haven yen, while the greenback was also helped by debate about more aggressive U.S. interest rate hikes.

The euro was at $1.1308 in early Asia having touched $1.1278 the day before, its lowest in a week-and-a-half. The yen was at 115.33 per dollar, after briefly hitting 114.99 on Monday, its strongest in a week.

 

Dollar gains as Ukraine worries rise, Bullard reiterates rate comments

 

The U.S. dollar index reached a two-week high on Monday 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.

 

 

 

COMMODITIES

 

 

Gold futures mark highest settlement since mid-November

 

Gold futures climbed sharply on Monday, with concerns surrounding a possible Russian invasion of Ukraine boosting prices for the precious metal to their highest finish in nearly three months.

Comments from U.S. officials at the end of last week suggesting that an invasion of Ukraine by Russia was imminent, threw markets into a tailspin," said David Russell, director of marketing at GoldCore

 

Geopolitics, not fundamentals, driving oil higher, UAE energy min says

 

 Tensions between Russia and the West are driving oil prices, rather than the kind of fundamental fuel shortage that would justify accelerated output increases from OPEC+, UAE energy minister Suhail al-Mazrouei said on Monday.

"It looks like it is not supply and demand," he told reporters on the sidelines of the Egypt Petroleum Show. "The major hike is geopolitical tensions, that is what is causing prices to be where they are today."

 

 

STOCKS

 

 

U.S. stocks slide as Russia-Ukraine tensions come to boil

 

Wall Street indexes turned sharply lower on Monday, 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 imminent Russian invasion.

 

 

ANALYSIS

 

 

AUD/USD to drop gradually over the next months – Danske Bank

 

“The rally in commodity prices has supported AUD since late January as broad USD strengthening took a step back. Continuing easing from China is especially supportive for Australia’s key export commodity, iron ore.” 

 

 

CHART

 

 

GBPUSD Near Term: Downside favoured

 

Technical View: Short position below 1.358. Target 1.346. Conversely, break above 1.358, to open 1.362.

Comments: The pair is expected to resume descend after correction.

Source: Trading Central
 

CALENDAR

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

 

https://www.fxstreet.com/economic-calendar
https://finance.yahoo.com/m/ca4c101a-65d7-30b0-8b76-ef8eef5ef97d/gold-futures-mark-highest.html
https://www.investing.com/news/commodities-news/geopolitics-not-fundamentals-driving-oil-higher-uae-energy-min-says-2763613
https://investing.com/news/stock-market-news/germany-stocks-lower-at-close-of-trade-dax-down-202-2763706
https://www.reuters.com/business/ukraine-tension-reins-euro-drives-rush-safe-havens-2022-02-14/
https://www.reuters.com/markets/europe/ukraine-tensions-fed-hike-talk-drag-euro-2022-02-15/