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Midday Update
Commodities opened higher as the progress of peace talks are not as big as expected. European leaders will be discussing the energy crisis today and President Biden will be speaking to European leaders in a bid to synchronize a line up to pressure China against helping Russia against Ukraine.
Investors will be following speeches from Fed and ECB policy markers this week as they attempt to guide the market from their previous policy meetings.
Oil extended gains on Monday, as Ukraine war tightens supply while an attack on Saudi Aramco facilities over the weekend is causing supply jitters in the near term. US WTI jumped +3.34% after opening above $104/barrel on Monday and bulls remain challenged by $110 near-term resistance. A break above that high may give room towards $114.75 near-term resistance.
Brent futures were up +1.5%, a second-day gain after rebounding from 97.20 near-term support. The high energy prices and inflationary pressure will weigh on consumer spending and business climate which may be tough for the Eurozone to keep up with the present cost pressures. A break above $110/barrel may give room for a retest of $120 near-term resistance.
Gold is slightly higher +0.19% while the price is currently sitting on top of critical support at 1917 with a possibility of trading towards 1950 near-term resistance.
EURJPY dropped -0.18% as German PPI figures for February miss expectations while renewed risk-off the market increases bids on safe haven pairs. The bullish momentum receded early morning after slightly trading above 131.912, 16 February 2022 high, ahead of German Buba President Nagel’s speech in the New York session.
AUDCAD traded lower -0.45% after finding a near-term resistance of 0.93500 as the Canadian dollar was supported by firm commodity prices. The conflict in Ukraine seems far from over and more volatility is expected in the near term especially after Australia bans Aluminium exports to Russia. A failure by bulls to defend near-term support at 0.9300 the pair may trade lower in the near-term towards 0.92500 while a break above 0.93500 may open room towards 0.9400.
CHFJPY extended gains with +0.14% after closing above 127.00 on Friday. The pair has room to trade higher ahead of the SNB press conference on Tuesday and possibly bulls may target 130.00 near-term resistance.
European Equities markets were rangebound during the Monday European trading session, with FTSE trading at the opening price after paring earlier losses. The index has near-term support at 7381.6 and near-term resistance at 7450.00. The DAX is down -0.54% from 6640.00 near-term high and a break above that area may give room for a 6800.00 near-term high.
US equities markets closed higher on Friday logging their biggest weekly gain ahead of President Biden and President Xi talks over Russia. Dow Jones Industrial Index closed +0.80% to 34754.93 as the trend turns bullish in the near term.
The Nasdaq rose +2.14% although bulls need to challenge the near-term barrier at 14500.00 for further upside gains. S&P 500 gained +1.17% as the trend crosses above the 50-day moving average at 4432.00 and a possible rise above 4475.00 in the near term.
