Investors Worry Again Over Ukraine, Powell Stays Hawkish

EQUITIES PULL BACK ON UKRAINE, USD GAINS ON POWELL’S HAWKISH REMARKS

The US dollar traded higher against all but one of the other major currencies on Monday and during the Asian session Tuesday. It gained the most versus JPY, EUR, NZD, and CHF, in that order, while it lost some ground only versus CAD.

DJIA — TECHNICAL OUTLOOK

The Dow Jones Industrial Average cash index traded lower yesterday, but hut support slightly below the 34415 level, staying above the 34120 barrier, which acted as the upper bound of the sideways range that contained the price action between February 21st and March 17th. In our view, this keeps the door open for another leg north.

EUR/USD — TECHNICAL OUTLOOK

EUR/USD traded lower yesterday, breaking back below the round figure of 1.1000. The slide came after the pair hit resistance near the downside resistance line drawn from the high of February 10th, on Thursday, and thus, the fact that it stays below that line keeps the short-term picture negative.

AS FOR TODAY’S EVENTS

The calendar appears very light today, with no major data releases on the agenda. However, we will hear from several monetary policy officials, including ECB President Lagarde again, SNB Chairman Thomas Jordan, Fed’s Williams, Mester, and Daly, as well as BoE member Cunliffe.

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