Geopolitical Tensions intensifies

Market Update

Markets remains under pressure on Friday morning as Ukrainian conflict forces global powers to intervene. The Dollar Index maintained gains as investors remain risk averse amid ongoing war crackdown on Ukrainian cities.

The Dollar index found a near-term support at 96.800 early Friday as demand for safe haven currencies diminishes. A break above 97.20 could see the dollar targeting 97.80, near-term resistance.

The EURUSD slid from 1.1220 high during European session dropping down to 1.1166 as signs of nervousness are rising on the market. The early morning fundamentals indicates the European economy has been gradually growing from between December and January although consumer confidence continue to decline.

However, the EURUSD will continue to face selling pressure as USD remains on the Bid in the near-term. Investors will be paying close attention to US Core Durable goods data and Monetary policy report due for release later in New York Session.

AUDUSD rebounded early Friday morning, as bulls attempt to recover Thursday loses in the near-term. The risk-sensitive pair found a near-term support at 0.7100 area before surging upside to reclaim 0.7200 gaining +0.63%.

The USDRUB traded lower, shedding off its Thursday gains on Friday morning as Russian Central bank ordered brokers to suspend short selling on Russia market late Thursday after hitting 90.00 high. The US has targeted Russian financial system in a bid to stop Russian aggression towards Ukrainian people.

There is a big recovery on European equity markets, with Dax recovering +1.49% as bulls attempt to cover the price action gap between 14200 and 14600. The better-than-expected German GDP indicates a great improvement in the economy and investors may price in this positive reading in the near-term.

However, gains remain capped with on-going Russia/Ukraine conflict which could affect energy supply and trade agreements with Europe in the near-term.

The CAC40 is currently rangebound only rising 0.07% after bouncing back from a low at 6440. The index remains capped by a near-term resistance at 6650, which coincides with a 50-day moving average on a 1-hour chart. A break above this resistance could attract bullish participation in the near-term.

The FTSE 100 index surged 1.34% during European session opening crossing above the 50-day moving average as bulls target 7400 area. The US equities closed higher on Wednesday, with Nasdaq surging +3.44% and S&P 500 following with +1.50% in a big market reversal after US announced new harsh sanctions on Russia.

In commodities, Gold traded rebounded Friday morning as the yellow metal retreats from $1875.00/oz low. Prices seem to stabilize after investors turn cautious after Thursday’s volatility in reaction to Russian invasion into Ukraine. Investors continue to eye $2000 as a possible target in the near-term.