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Stocks end 4-day win streak

“Business opportunities are like buses, there’s always another one coming.” - Richard Branson

 

 

HEADLINES

 

 

  • Euro rises vs dollar as eurozone inflation fans rate hike expectations 

  • Sanctioned Russian bank VTB sees strong demand for gold bars
  • Oil up 3% on tight supply, prospects of new Russia sanctions
  • U.S. crude stocks fall, but demand also drops as prices rise
  • EUR/USD: Risks tilted toward a larger decline – Wells Fargo
  • EURUSD Short Term: Upside favoured

 

 

FOREX

 

 

Euro rises vs dollar as eurozone inflation fans rate hike expectations 

 

The dollar dropped to a nearly two-week low on Wednesday as optimism over peace talks between Russia and Ukraine faded and investors' attention shifted to economic data and interest rate expectations. 

Much of that weakness was due to strength in the euro, which had rallied on Tuesday following Russia's promise during peace talks to reduce its attacks on Kyiv.

 

 

COMMODITIES

 

 

Gold gains 1% as dollar slips, Ukraine optimism wanes

 

Gold prices rose nearly 1% on Wednesday, supported by a retreat in the U.S. dollar and renewed dThe U.S. dollar =USD fell 0.6% to nearly a two-week low, making greenback-priced gold less expensive for other currency holders. The Kremlin on Wednesday welcomed that Kyiv had set out its demands for an end to the conflict in Ukraine in written form, but said there was no sign of a breakthrough yet.

 

Oil up 3% on tight supply, prospects of new Russia sanctions

 

Oil prices gained about 3% on Wednesday as another U.S. crude stock drawdown indicated tight supplies and investors worried about new Western sanctions against Moscow with Russian forces continuing to bomb the outskirts of Ukraine's capital.

On Tuesday, Russia promised to scale down operations around Kyiv in what the West dismissed as a ploy to regroup by invaders suffering heavy losses.

 

 

STOCKS

 

 

Dow, S&P close lower after 4 days of gains as Russia bombs Ukraine

 

U.S. stocks fell on Wednesday, with the Dow and S&P 500 snapping four-session winning streaks, on waning signs of progress for peace talks between Ukraine and Russia against a backdrop of a hawkish Federal Reserve curbing economic growth.

Russian forces bombarded the outskirts of Kyiv and a besieged city in northern Ukraine, a day after promising to scale down operations.

 

 

ANALYSIS

 

 

EUR/USD: Risks tilted toward a larger decline – Wells Fargo

 

“We forecast a period of extended euro weakness; however, the risks are potentially tilted toward a larger decline than we currently expect.”

“Growth slowed significantly in late 2021, and we expect a relatively gradual rebound in growth from early 2022. However, with higher energy prices likely to weigh on consumer purchasing power and given possible Ukraine uncertainties, Eurozone economic growth could be even more sluggish than we expect.”

 

 

CHART

 

 

EURUSD Short Term: Upside favoured

 

Technical View: Long position above 1.098. Target 1.115. Conversely, break below 1.098, to open 1.093.

Comments: The pair remains supported. Further advance favored.

Source: Trading Central
 

 

CALENDAR

 

 

*Times in GMT

 

Source: FX Street Economic Calendar


SOURCES

https://www.reuters.com/business/hopes-peace-ukraine-keep-euro-afloat-2022-03-30/
https://www.reuters.com/business/sanctioned-russian-bank-vtb-sees-strong-demand-gold-bars-2022-03-30/
https://www.reuters.com/business/energy/oil-rises-supply-tightness-despite-constructive-ukraine-russia-talks-2022-03-30/
https://www.reuters.com/business/energy/us-crude-stocks-drop-fuel-inventories-higher-eia-2022-03-30/
https://www.fxstreet.com/news/eur-usd-risks-tilted-toward-a-larger-decline-wells-fargo-202203301620
https://www.reuters.com/article/global-precious/gold-gains-as-dollar-u-s-treasury-yields-weaken-idUSKCN2LR0NX