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Stocks repeat sell-off and bounce

“I never dreamed about success, I worked for it.” — Estee Lauder

 

 

 

HEADLINES

 

 

 

  • Euro falls to one-month low as Ukraine tensions simmer
  • In surprise move, Singapore tightens monetary policy on inflation risks
  • Oil rises on concerns global political risks could tighten supplies
  • Gold scales over 2-month peak as Ukraine worries dent risk appetite
  • Wall Street ends down as markets whipsaw ahead of Fed meeting
  • GBP/USD to plummet to the 1.32 level on a break below 1.34 – Scotiabank

 

 

 

FOREX

 

 

 

Euro falls to one-month low as Ukraine tensions simmer

 

 

The euro fell to a one-month low on Tuesday as tensions between Russia and the West over Ukraine drew investors to the dollar, a day before the Federal Reserve is expected to reveal details on its plans to tighten monetary policy.

Western leaders stepped up preparations for any Russian military action in Ukraine while Moscow said it was watching with great concern after 8,500 U.S. troops were put on alert to deploy to Europe in the event of an escalation.

 

 

In surprise move, Singapore tightens monetary policy on inflation risks

 

 

Singapore's central bank tightened its monetary policy settings on Tuesday in its first out-of-cycle move in seven years, as global supply constraints and brisk economic demand elevate inflation pressures across the region.

 

 

 

COMMODITIES

 

 

 

Oil rises on concerns global political risks could tighten supplies

 

 

Oil prices rose over 2% on Tuesday on concerns supplies could become tight due to Ukraine-Russia tensions, threats to infrastructure in the United Arab Emirates and struggles by OPEC+ to hit its targeted monthly output increase.

 

 

Gold scales over 2-month peak as Ukraine worries dent risk appetite

 

 

Gold hit a more than two-month high on Tuesday as geopolitical concerns over Ukraine pushed investors toward safe havens including bullion, ahead of the U.S. Federal Reserve's meet that could offer cues on its monetary policy tightening plan.

 

 

 

STOCKS

 

 

 

Wall Street ends down as markets whipsaw ahead of Fed meeting

 

 

U.S. stocks gyrated in afternoon trading to close lower with interest rate sensitive tech stocks weighing most heavily as uncertainties surrounding an increasingly hawkish Federal Reserve and rising geopolitical tensions contributed to the market's churn.

In a pattern similar to Monday, U.S. stocks whipsawed between steep losses and modest gains. Equities ended well off session lows, where the S&P 500 flirted once again with confirming a correction.

 

 

 

ANALYSIS

 

 

 

GBP/USD to plummet to the 1.32 level on a break below 1.34 – Scotiabank

 

 

GBP/USD is still holding above Monday’s intraday low of 1.3440 that stands as support, followed by the 50-day MA at 1.3421 and the big figure area.” 

“A break under 1.34 will spell more trouble ahead for the pound and target a move to the 1.32 zone.”

“Resistance is 1.3495/500 (failed test this morning) followed by the 100-day MA at 1.3536 and the mid-figure area.”

 

 

 

CHART

 

 

 

DAX 40 index – Weekly Candlesticks

Source: GKFX Prime Metatrader 4

DAX40 has bounced off a clear horizontal support at 14,800, which has been in place for 10 months. A break below could begin a new downtrend. - Prepared by Trading Writers*

 

 

 

CALENDAR

 

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

SOURCE:

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/gbp-usd-to-plummet-to-the-132-level-on-a-break-below-134-scotiabank-202201251357
https://www.reuters.com/business/energy/oil-prices-rise-supply-disruption-jitters-geopolitical-tensions-grow-2022-01-25/
https://www.reuters.com/markets/currencies/singapores-central-bank-tightens-monetary-policy-inflation-risks-2022-01-25/
https://www.reuters.com/markets/europe/gold-flat-caution-ahead-fed-meeting-offset-ukraine-risks-2022-01-25/
https://www.reuters.com/business/futures-fall-ahead-fed-meeting-corporate-earnings-2022-01-25/