Markets panic as Russia invades Ukraine

"In trading, you have to be defensive and aggressive at the same time. If you are not aggressive, you are not going to make money, and if you are not defensive, you are not going to keep the money." - Ray Dalio.

 

 

HEADLINES

 

 

• Euro tries to recover after tumbling on Russian invasion of Ukraine
• Russia's rouble hits record low as Ukraine attack prompts more Western sanctions
• Gold rises with Russia-Ukraine situation in focus
• Oil prices surge as Russian invasion of Ukraine rings supply alarm bells
• Wall St rallies as West hits Russia with new sanctions
• EUR/USD to drop towards 1.11 as energy costs spike further – Danske Bank
• DOW JONES Short Term: Downside favored - Trading Central

 

 

FOREX

 

 

Euro tries to recover after tumbling on Russian invasion of Ukraine

 

The euro was struggling to recover from its plunge the previous day in early Asia trading on Friday, after Russia's invasion of Ukraine had hit the common European currency and sent investors scrambling to the safety of the dollar, yen and Swiss franc.

The euro was last at $1.1196 having touched as low as $1.1106 on Thursday, its lowest since May 2020, plunging from the $1.13045 at which it had finished on Wednesday.

 

Russia's rouble hits record low as Ukraine attack prompts more Western sanctions

 

Russia's rouble plunged to a record low on Thursday before recovering slightly as investors digested a fresh wave of Western sanctions against Russia after it launched a full-blown invasion of Ukraine.

U.S. President Joe Biden unveiled harsh new measures that would limit Russian access to the U.S. financial system while hammering its access to global exports of everything from commercial electronics to semiconductors and aircraft parts.

 

 

COMMODITIES

 

 

Gold rises with Russia-Ukraine situation in focus

 

Gold prices rose on Friday, steadying after a volatile session, as investors reassessed the situation surrounding Russia's invasion of Ukraine and fresh sanctions against Moscow from the West. The metal jumped more than 3% on Thursday to hit its highest level since September 2020 at $1,973.96, before reversing course to close lower.

 

Oil prices surge as Russian invasion of Ukraine rings supply alarm bells

 

Oil prices jumped nearly 3% on Friday as Russia's invasion of Ukraine stoked global supply concerns as markets brace for the potential impact of trade sanctions on major crude exporter Russia.

The attack on Ukraine caused prices to surge to more than $100 a barrel for the first time since 2014 on Thursday, with Brent touching $105, before paring gains by the close of trade.

 

 

STOCKS

 

 

Wall St rallies as West hits Russia with new sanctions

 

U.S. stocks ended sharply higher on Thursday, led by a 3% gain in the Nasdaq, in a dramatic market reversal as U.S. President Joe Biden unveiled harsh new sanctions against Russia after Moscow began an all-out invasion of Ukraine.

The S&P 500 rose more than 1%, ending a four-day slide amid worries over the escalating crisis. The Dow also ended in positive territory.

 

 

ANALYSIS

 

 

EUR/USD to drop towards 1.11 as energy costs spike further – Danske Bank

 

“At present, it seems unlikely to talk about de-escalation and further downside to EUR/USD is probably realistic at the present stage in the conflict (as energy costs potentially spike further, spot can drop towards 1.11) – assuming next up we see pictures of war and politicians need to step up.”

“Downside in EUR/USD is equally amplified by many turning EUR-positive after the recent ECB meeting.”

 

 

CHART

 

 

DOW JONES Short Term: Downside favored

 

 

Technical View: Short position below 33600. Target 32000. Conversely, break above 33600, to open 34100.

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

Source: Trading Central
 

 

 

CALENDAR

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar

SOURCES

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/eur-usd-to-drop-towards-111-as-energy-costs-spike-further-danske-bank-202202241233
https://www.reuters.com/markets/europe/rouble-plummets-record-low-russia-invades-ukraine-2022-02-24/
https://www.reuters.com/markets/europe/euro-tries-recover-after-tumbling-russian-invasion-ukraine-2022-02-25/
https://www.reuters.com/markets/europe/gold-rises-with-russia-ukraine-situation-focus-2022-02-25/
https://www.reuters.com/business/energy/oil-prices-surge-2-russian-invasion-ukraine-rings-supply-alarm-bells-2022-02-25/
https://www.reuters.com/business/futures-sink-after-russia-invades-ukraine-bear-market-sight-nasdaq-100-2022-02-24/