Fear and Panic grip markets

Market Update

Fear and panic remained the major driver on Monday morning as Russian aggression towards Ukraine intensified over the weekend. Price gaps are visible across majority of assets as investors remains risk averse.

The US Dollar was stronger than the rest of the safe haven pairs, JPY and CHF. The EU and US governments announced more sanctions on Russian over the weekend including a suspension of SWIFT payment services to Russian major banks.

It has been a critical weekend and Investors remain sensitive to the developments in Ukraine and additional sanction announcements seem to pose long-term significant impact on the global markets.

The Dollar Index shaded off some its gains during European session opening after gaping up +0.60%. The Dollar was the main beneficiary of the geopolitical crisis between Ukraine and Russia which has put a bid on Safe haven currencies. A price action gap between 97.02 and 96.548 could be filled before the market takes a significant direction.

Investors will be focusing on Production statistics from the US to be released during New York session ahead of employment data on Friday. Goods Trade, Retail Inventories for January, Chicago PMI and AIG Manufacturing Index will take the centre stage in the direction of the Dollar in the near-term.

The Russian Ruble plummeted against the USD losing -20% of its economic value early morning. The USDRUB surged to an all-time high at 105.93 before the market took a sharp retracement to 83.92 area. The Russian Central Bank doubled their interest rates to 20% in a bid to boost the Ruble.

However, the Russian Ruble remains under selling pressure against other currencies as sanctions imposed by the west have long-term effects on the Russian economy.

The EURUSD surged higher during European session open despite opening lower early Monday morning due to volatility breakout on the market. The EURUSD remains under selling pressure as long as war prolongs, and bears may target $1.1100 in the near-term.

EURUSD also got a boost from positive Spanish CPI and HCPI for February and bulls are currently attempting to cover the price action gap between 1.1270 and 1.1150 area.

On European Equity markets, the CAC40 dropped -3.69% followed by DAX tanking -2.34% as Russian invasion of Ukraine intensifies and dampens Investor mood.

During European session opening, the FTSE100 dropped -1.98% after failing to break above 7570, near-term resistance on Friday. Investors are sitting on the edge and Indices could suffer more in the near-term unless Russian and Ukraine comes to a resolution.

US stocks indices rose higher on Friday afternoon with the market rebounding for the second day from a serious market dip prior to the Russian invasion of Ukraine. The Nasdaq 100 extended gains rising +1.53% before closing at 14189.00 area. The S&P500 rose +2.24% as bulls target 4475.00 near-term resistance.

On commodities, gold bulls gained +1% early Monday morning, although gains remain capped by $1920 near-term resistance and room for further upside remains probable once price breaks above the near-term resistance.

WTI Crude Oil futures rose +4% hitting $98.17 per barrel as additional sanctions on Russian threatens oil supply in the near-term.