Oil jumps back over $100

“Make every detail perfect and limit the number of details to perfect.” — Jack Dorsey

 

 

HEADLINES

 

 

• Euro slips, ruble slumps as Russia-Ukraine tensions boil
• Russian central bank hikes rate to 20% in emergency move, tells firms to sell FX
• Oil soars as Russian energy supply fears intensify
• Palladium, gold jump as Russia sanctions unnerve markets
• Wall Street drops as investors digest sanctions on Russia
• NYSE, Nasdaq halt trading in stocks of Russia-based companies
• EUR/USD: Break below recent low near 1.11 to put 1.10 in the crosshairs – Rabobank
• EURJPY Near Term: Downside favored

 

 

FOREX

 

 

Euro slips, ruble slumps as Russia-Ukraine tensions boil

The Russian ruble sank and the euro nursed sharp losses against the U.S. dollar on Monday as the West ramped up sanctions against Russia over its Ukraine invasion, prompting investors to shun riskier currencies.

Western allies have ramped up efforts to punish Russia with new sanctions including cutting some of its banks off the SWIFT financial network and limiting Moscow's ability to deploy its $630 billion foreign reserves and shuttering their airspace to Russian aircraft. Companies also reported divestment plans.

 

 

Russian central bank hikes rate to 20% in emergency move, tells firms to sell FX

The Russian central bank raised its key interest rate to 20% from 9.5% on Monday in an emergency move, and authorities told export-focused companies to sell foreign currency as the rouble tumbled to record lows.

 

 

COMMODITIES

 

 

Oil soars as Russian energy supply fears intensify

 

 

Oil prices jumped on Monday as Western allies imposed more sanctions on Russia and blocked some Russian banks from a global payments system, which could cause severe disruption to its oil exports.

Brent crude rose $2.94, or 3%, to $100.87 by 2:21 p.m. EDT (1921 GMT) after touching a high of $105.07 a barrel in early trade.

 

 

Palladium, gold jump as Russia sanctions unnerve markets

 

 

Palladium prices surged on Monday after the West slapping more sanctions on Russia over its invasion of Ukraine raised fears of supply disruptions and put safe-haven gold on pace to post its biggest monthly percentage gain in nine.

Palladium was up 5.1% at $2,488.20, having scaled a session high of $2,551.50. It was set to post its third consecutive monthly rise.

 

 

STOCKS

 

 

Wall Street drops as investors digest sanctions on Russia

 

 

Wall Street tumbled in volatile trading on Monday, with investors wrestling with uncertainty and bank stocks dropping following powerful Western sanctions against Russia as it continued its invasion of Ukraine. Citigroup fell 5%, helping drag the S&P 500 banks index down 2.7% as the U.S. 10-year Treasury yield slipped. The wider financial index fell 1.8%.

 

 

NYSE, Nasdaq halt trading in stocks of Russia-based companies

Nasdaq Inc and Intercontinental Exchange Inc's NYSE have temporarily halted trading in the stocks of Russia-based companies listed on their exchanges, their websites showed. The halts were due to regulatory concerns as the exchanges seek more information following economic sanctions imposed on Russia because of its invasion of Ukraine, people familiar with the matter said.

 

 

ANALYSIS

 

 

EUR/USD: Break below recent low near 1.11 to put 1.10 in the crosshairs – Rabobank

 

 

“The Eurozone maintains a healthy current account surplus and from time to time a debate arises as to whether the EUR could adopt safe haven behaviours. Clearly, this is unlikely at present.” 

“In view of the risks to gas and oil supply to Germany, the EUR could find itself stifled by a new wave of growth risks and potentially by increased concerns about stagflation. A break of the recent low close to the 1.11 level would likely focus attention on 1.10.”

 

 

CHART

 

 

EURJPY Near Term: Downside favored

 

 

Technical View: Short position below 130. Target 128.5. Conversely, break above 130, to open 130.5.

Comments: The pair breaks above the resistance.

 

Source: Trading Central
 

 

CALENDAR

*Times in GMT

 

 

Source: FX Street Economic Calendar

 

 

SOURCE

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/eur-usd-break-below-recent-low-near-111-to-put-110-in-the-crosshairs-rabobank-202202281601
https://www.reuters.com/business/rouble-set-dive-euro-slides-after-west-steps-up-russia-sanctions-2022-02-28/
https://www.reuters.com/business/finance/russia-hikes-key-rate-20-tells-companies-sell-fx-2022-02-28/
https://www.reuters.com/business/energy/oil-surges-russia-nuclear-alert-sanctions-intensify-2022-02-27/
https://www.reuters.com/business/nyse-nasdaq-halt-trading-stocks-russia-based-companies-2022-02-28/
https://www.reuters.com/markets/europe/gold-set-best-month-since-may-appeal-surges-ukraine-crisis-2022-02-28/