Equities Pull Back as US Pr. Biden Visits Brussels

RISK APPETITE DETERIORATES AHEAD OF BIDEN’S MEETINGS WITH EU LEADERS

The US dollar traded mixed against the other major currencies on Wednesday and during the Asian session Thursday. It gained versus GBP, EUR, and JPY, in that order, while it underperformed against AUD, CHF, and NZD. The greenback was found virtually unchanged versus CAD.

EUR/AUD — TECHNICAL OUTLOOK

EUR/AUD has been n a sliding mode since March 15th, when it hit resistance at 1.5335. Overall, the rate continues to trade below the downside line drawn from the high of February 4th, and thus, we will consider the near-term picture to be negative.

USD/CHF — TECHNICAL OUTLOOK

USD/CHF traded lower yesterday, but it was once again stopped by the key support zone of 0.9295, which was also recently tested on Monday. Despite the rate trading between a downside line drawn from the high of March 16th, the fact that it cannot fall below 0.9295 keeps us to the sidelines for now.

AS FOR TODAY’S EVENTS

The main items on the economic agenda may be the preliminary Markit PMIs for March. We get the manufacturing, services and composite indices from the Eurozone, the UK and the US, and they may provide a first glimpse as to how those major economies have been affected by the war in Ukraine.

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