Ukraine-Russia Worries Ease, Fed Minutes Under the Limelight

SENTIMENT IMPROVES ON EASING GEOPOLITICAL TENSIONS, FOMC MINUTES ON THE AGENDA

The US dollar traded lower against all but two of the other major currencies on Tuesday and during the Asian session Wednesday. It gained only versus JPY and CHF, while it lost the most ground versus AUD and NZD.

S&P 500 — TECHNICAL OUTLOOK

The S&P 500 cash index traded higher yesterday, but the advance remained limited near the 4525 zone. Even if the index continues a bit higher, given that it remains below the upside line taken from the low of January 24th, we will consider the short-term picture to still be cautiously negative.

USD/CAD — TECHNICAL OUTLOOK

USD/CAD traded lower, after it hit resistance slightly below the 1.2785 zone, which has been acting as the upper end of the sideways range that’s been containing the price action since January 26th. The lower end is the area between the 1.2648 and 1.2664 levels, and as long as the pair is trading between those boundaries, we will hold a flat stance.

AS FOR THE REST OF TODAY’S EVENTS

During the early European morning, we already got the UK CPIs for January, with both the headline and core rates rising slightly more than expected. The pound strengthened slightly as this keeps the door open for a double hike at the BoE’s upcoming gathering. Remember that at the last one, officials voted 5–4 for a hike by 25bps, with the 4 dissenters calling for a 50bps increase. Thus, only one member needs to be convinced for that to happen in March.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
JFD

JFD

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