Euro lifted by hawkish ECB

"Don't look for the needle in the haystack. Just buy the haystack!" — John Bogle

HEADLINES

• Euro eases following ECB meeting, while dollar rises after inflation data
• Gold steadies near $2,000/oz as Ukraine worries lend support
• Oil settles down again; Russia to fulfil supply contracts
• World shares fall on U.S. inflation, ECB announcement
• EUR/USD: ECB tightening moderately “over-priced” – Wells Fargo
• DOW JONES Short Term: Upside favored

FOREX

Euro eases following ECB meeting, while dollar rises after inflation data

The euro retreated from its overnight gains on Thursday following the European Central Bank's announcement it will phase out its stimulus in the third quarter, while the dollar strengthened after a strong U.S. inflation report.

The statement from the ECB, which left the door open to an interest rate hike before the end of 2022, initially sent the euro higher, but the rally faded.

COMMODITIES

Gold steadies near $2,000/oz as Ukraine worries lend support

Gold steadied near the $2,000 an ounce level on Thursday, after big gyrations over the past couple of sessions, as its safe-haven appeal was supported by a lack of progress in talks between Russia and Ukraine.

Spot gold rose 0.2% to $1,996.30 per ounce by 13:53 ET (1853 GMT), after tumbling as much as 3% on Wednesday. U.S. gold futures settled up 0.6% at $2,000.40.

Oil settles down again; Russia to fulfil supply contracts

Oil prices settled lower on Thursday after a volatile session, a day after its biggest daily dive in two years, as Russia pledged to fulfil contractual obligations and some traders said supply disruption concerns were overdone.

STOCKS

World shares fall on U.S. inflation, ECB announcement

Global share markets slid on Thursday as inflation in the United States hit almost 8%, likely cementing the case for an interest rate hike by the U.S. Federal Reserve, and the European Central Bank sped up its exit from its massive stimulus program.

Data showed U.S. consumer inflation running at a 7.9% annualized clip in February, bang on analysts' expectations. Wall Street fell on the data, giving up some of the gains notched in the prior session's relief rally.

ANALYSIS

EUR/USD: ECB tightening moderately “over-priced” – Wells Fargo

“As far as our views on the euro going forward, we expect a more gradual pace of ECB policy adjustment relative to the Fed, which should place depreciation pressure on the euro over the medium-term. In addition, we continue to believe financial markets are moderately 'over-priced' with respect to ECB tightening, and as markets adjust to a more gradual pace of ECB tightening, that should also contribute to euro weakness.”

CHART

DOW JONES Short Term: Upside favored

Technical View: Long position above 32500. Target 33800. Conversely, break below 32500, to open 32000.

Comments: The pair is expected to resume an advance 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-ecb-tightening-moderately-over-priced-wells-fargo-202203101646
https://www.reuters.com/markets/europe/global-markets-wrapup-1-2022-03-10/
https://www.reuters.com/markets/europe/euro-stands-tall-investors-cheer-ukraine-talks-2022-03-10/
https://www.reuters.com/markets/europe/gold-prices-drop-1-yields-risk-appetite-rebound-2022-03-10/
https://www.reuters.com/business/energy/oil-jumps-after-uae-says-it-is-committed-opec-supply-pact-2022-03-09/