Equities Surge on Russia-Ukraine Talks, ECB Decision and US CPIs in Focus

RISK APPETITE IMPROVES ON RUSSIA’S AND UKRAINE’S WILLINGNESS FOR DIPLOMACY

The US dollar pulled back against most of the other major currencies on Wednesday and during the Asian session Thursday. It gained only against JPY, while it was found virtually unchanged against CHF. The main gainer was EUR.

S&P 500 — TECHNICAL OUTLOOK

The S&P 500 cash index traded higher yesterday, after it hit support at 4150 on Tuesday. However, the recovery was paused near the 4300 zone, still below the downside resistance line drawn from the high of January 4th. In our view, this keeps the door open for another round of selling.

ECB AND US CPIS TO RESHAPE MARKET EXPECTATIONS ON ECB AND FED PLANS

As for today, there are two important economic events on the agenda and those are the ECB monetary policy decision and the US CPIs for February.

EUR/USD — TECHNICAL OUTLOOK

EUR/USD rebounded strongly, overcoming the 1.0960 zone, but hitting resistance at 1.1095, still below the downside resistance line taken from the high of February 10th. In our view, this still keeps the short-term downtrend intact.

UK MONTHLY GDP, IP AND MP, ON TOMORROW’S EARLY AGENDA

Tomorrow, during the early European session, we get the monthly UK GDP for January, alongside the industrial and manufacturing production rates for the month. No forecast is available for the GDP, while both the IP and MP rates are expected to have held steady at +0.3% mom and +0.2% mom respectively.

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JFD is a leading Group of Companies offering financial and investment services and activities.