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Crude oil breaches $110

“The secret to investing is to figure out the value of something and then pay a lot less.” — Joel Greenblatt

 

 

 

HEADLINES

 

 

  • Australian dlr finds the energy to climb one-year peak on euro
  • Euro testing support as Ukraine crisis looms over growth
  • Gold slips as dollar firms, investors focus on Ukraine conflict
  • Oil jumps 3% on choked Russian supply as trade finance dries up
  • Wall Street ends sharply lower as Ukraine crisis sows fear
  • BoC Preview - TD Bank
  • EURUSD Short Term: Downside favored

 

 

FOREX

 

 

 

Australian dlr finds the energy to climb one-year peak on euro

 

 

The Australian dollar hit a one-year high on the euro on Wednesday as investors were attracted by Australia's status as a net energy exporter and distance from Europe's troubles.

The euro breached lows from last October to hit a trough at A$1.5274 , having shed five cents in the past month. A break of the 2021 low at $1.5244 would see the euro down at depths last visited in mid-2018.

 

 

 

Euro testing support as Ukraine crisis looms over growth

 

 

 

The euro was under pressure on Wednesday as intensifying Russian bombardment of Ukraine's cities and a surging oil price raised investor concerns about a hit to Europe's economy and growth.

The common currency briefly fell below support to touch a 21-month low of $1.1090 overnight, before recovering a bit to trade at $1.1131 early in the Asia session.

 

 

 

COMMODITIES

 

 

 

Gold slips as dollar firms, investors focus on Ukraine conflict

 

 

 

Gold prices dipped in early Asian trade on Wednesday, as the dollar ticked higher, outweighing safe-haven demand fuelled by the intensifying Russia-Ukraine conflict. The metal rose about 6.5% in February, hitting an 18-month high of $1,973.96 last week. The dollar index held close to a 20-month high touched on Tuesday, making gold less attractive for holders of other currencies.

 

 

Oil jumps 3% on choked Russian supply as trade finance dries up

 

 

Oil prices rose on Wednesday as sanctions on Russian banks following Moscow's invasion of Ukraine hampered trade finance for crude shipments and some traders opted to avoid Russian supplies in an already tight market.

 

On Wednesday morning, global benchmark Brent crude blew past $110 per barrel, rising more than 5.8% to $111.09, its highest since early July 2014.

 

 

 

STOCKS

 

 

 

Wall Street ends sharply lower as Ukraine crisis sows fear

 

 

 

Wall Street ended sharply lower on Tuesday, with financial stocks bearing much of the damage for a second straight day as the Russia-Ukraine crisis deepened and stirred anxiety among investors.

Wells Fargo tumbled 5.8% and the broader banks index declined 4.8% as U.S. 10-year Treasury yields slumped to five-week lows amid a flight to safe-haven debt.

 

 

 

ANALYSIS

 

 

BoC Preview - TD Bank

 

 

“The BoC loudly telegraphed a rate hike in March; we look for a 25bp increase, as the facts on the ground haven't changed enough to justify a more drastic tightening. We expect the Bank will remain in its reinvestment phase for the balance sheet, and it will signal more rate hikes to come. With the Fed and BoC set to hike next month, we don't see a huge swing factor for USD/CAD. The BoC might offer CAD a marginal first-mover advantage versus the USD but much depends on risk appetite and geopolitical developments.”

 

 

CHART

 

 

 

EURUSD Short Term: Downside favored

 

 

 

Technical View: Short position below 1.12. Target 1.108. Conversely, break above 1.12, to open 1.124.

Comments: The pair breaks below support.

Source: Trading Central
 

CALENDAR

 

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar

 

Footnotes
https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/boc-preview-forecasts-from-seven-major-banks-a-25bps-hike-with-several-more-to-come-202203011413
https://www.reuters.com/markets/rates-bonds/australian-dlr-finds-energy-climb-one-year-peak-euro-2022-03-02/
https://www.reuters.com/business/euro-testing-support-ukraine-crisis-looms-over-growth-2022-03-02/
https://www.reuters.com/markets/europe/gold-slips-dollar-firms-investors-focus-ukraine-conflict-2022-03-02/
https://www.reuters.com/business/energy/oil-jumps-3-choked-russian-supply-trade-finance-dries-up-2022-03-02/
https://www.reuters.com/business/futures-fall-russia-ukraine-crisis-escalates-2022-03-01/
https://www.reuters.com/markets/europe/global-markets-wrapup-1-2022-03-02/