Sunday, March 13, 2022
Sri Lanka tightens trade rules to boost currency reserves
from Forex News https://www.investing.com/news/economy/sri-lanka-tightens-trade-rules-to-boost-currency-reserves-2783338
via IFTTT
Increased mining supply pushing Peruvian currency higher -cenbank
from Forex News https://www.investing.com/news/economy/increased-mining-supply-pushing-peruvian-currency-higher-cenbank-2783258
via IFTTT
Russian rouble drops a further 8% this week in Moscow
from Forex News https://www.investing.com/news/stock-market-news/russian-rouble-drops-a-further-8-this-week-in-moscow-2783250
via IFTTT
Why Rishi Sunak must tighten the government’s purse strings
There must be moments when Rishi Sunak wonders why he ever accepted the job of chancellor. Only months after he moved into No. 11 he had the Covid-19 crisis to deal with. Now he has the war in Ukraine as well. Already he is under pressure to find a way of alleviating the inevitable pain that is going to cause for the economy.
Oil and gas prices are soaring as Russian supplies start to get cut off, and if there is a ban on importing its energy they will go a lot higher still. Food prices will start rising very soon as it becomes clear how much the world has relied on the wheat fields of Ukraine to feed itself. And all the sales lost as company after company pulls out of the Russian market and stops buying raw materials from the country will very soon feed through into output and profits.
There is a very real possibility of a quarter or two of negative growth, and at the very least there will be a slowdown. Against that backdrop, it wouldn’t be a great surprise if the government, and certainly one as free-spending as this one has proved, decided that some kind of rescue package is needed. That would be a big mistake. Here’s why.
The war has made us poorer
First, we have to accept that the war has made us poorer. The vast supplies of Russian oil and gas, plus all the other raw materials it exported, as well as the vast quantities of wheat from Ukraine, lowered global prices. As all that stuff starts to disappear from the market, as with sanctions it inevitably will, then prices will be permanently higher. At some point, we will start to replace that. If Europe, including the UK, starts fracking in the same way the US has done, there will be plenty of gas available, and if we build nuclear plants as well as more wind turbines, then there will be plenty of electricity as well. If we allow gene editing we can almost certainly boost farm yields enough to replace the lost wheat and corn. But none of that is going to happen quickly and until then we will simply have to consume less. That is what happens in war.
Next, we have to get off the treadmill of permanent rescues. Over the last 15 years we spent tens of billions bailing out the financial system following the crash of 2008-2009. We spent five or ten times as much coping with the Covid-19 pandemic. And now here we are again, with a fresh crisis, and another round of demands for the government to rescue the economy. We need to get off that track. The state can’t always step in with a rescue package to magic away every downturn in the economy. Our debt levels have already soared from less than 50% of GDP before the crash to close to 100% now and are set to rise even higher over the next few years. If we keep borrowing more and more money with no plan for ever paying it back the accumulated debt will eventually crush us.
More cash will pour into defence
Finally, we will have to start spending more on defence. A new Cold War is starting and will only end when Vladimir Putin’s corrupt, autocratic regime collapses, just as the last one only ended with the fall of the Soviet Union. How long that takes remains to be seen. One point is certain, however: it will involve spending a lot more on defending ourselves. Along with the rest of Nato, the UK will need to spend more on military equipment, on stationing troops along the eastern frontier to deter aggression, and on helping the Ukrainians. None of that will be cheap. During the last Cold War the UK was spending an average of 5% of GDP on defence, compared with 2% today. If we have to find another two or three per cent of our total output to spend on our armed forces that inevitably means that we have less to spend on everything else. That includes bailing out the economy.
The very poorest among us may well need extra money to stay warm and pay for food. But we can do that through the welfare system and far more effectively than with price caps and controls for everyone. We will just have to tighten our belts and adjust – and stop expecting the chancellor to bail us out with printed cash every time there is a crisis.
from Moneyweek RSS Feed https://moneyweek.com/economy/uk-economy/604551/why-rishi-sunak-must-tighten-the-governments-purse-strings
via IFTTT
Speculators' net long bets on U.S. dollar edge higher -CFTC, Reuters
from Forex News https://www.investing.com/news/stock-market-news/speculators-net-long-bets-on-us-dollar-edge-higher-cftc-reuters-2783246
via IFTTT
C$ rallies as jobs surge raises bets on 50 basis points hike
from Forex News https://www.investing.com/news/economy/c-rallies-as-jobs-surge-raises-bets-on-50-basis-points-hike-2783024
via IFTTT
Saturday, March 12, 2022
Глава Occidental Petroleum: хотим, да не можем
Нефтедобывающие компании США не могут быстро заполнить дефицит на рынке восстановив производство до уровня, предшествовавшего пандемии, заявил глава компании Occidental Petroleum Вики Холлуб.Для американских компаний складывается непростая ситуация, так как рынок «кричит» о том, что добычу нужно наращивать, но из-за разрушенных цепочек поставок пандемии быстро восстановиться не получается.Рост добычи возможен пока только в Пермском бассейне. Он самый большой в США и в принципе уровень добычи там вернулся к докризисному уровню. Среди других факторов, сдерживающих рост добычи – нехватка рабочей силы и дефицит сырья.Пандемия сильно изменила нефтяную индустрии. Раньше все внимание было на том, чтобы нарастить добычу как можно быстрее, сейчас приоритетами являются рациональное использование капитала, заявил Холлуб. Компаниям приходится сосредотачиваться на своевременном погашении долгов, выплате дивидендов и минимизации издержек.Occidential Petroleum объявила в феврале о том, что планирует повысить дивиденды с $0.01 на акцию до $0.13. CEO компании заявил, что пока цены находятся на максимумах компания будет возвращать деньги акционеров в виде байбеков либо в виде дивидендов, чтобы в случае падении стоимости барреля нефти до 40$ не оказаться в убытке.
from Tickmill Expert Blog - Forex Traders Blog https://www.tickmill.com/blog/glava-occidental-petroleum-khotim-da-ne-mozhem"
via IFTTT
from Tickmill Expert Blog - Forex Traders Blog https://www.tickmill.com/blog/glava-occidental-petroleum-khotim-da-ne-mozhem"
via IFTTT
Ukraine official plays down risks of hryvnia devaluating further
from Forex News https://www.investing.com/news/forex-news/ukraine-official-plays-down-risks-of-hryvnia-devaluating-further-2783352
via IFTTT
Russian aggression is a big blow for the world’s “net zero” ambitions
Western nations are scrambling to cut exposure to Russian energy, and a rapid shift to green energy is looking ever more like a national security issue.
Russia’s war on Ukraine “should motivate us to accelerate our transition to a clean energy future”, tweeted US president Joe Biden on Wednesday. “To protect our economy over the long term, we need to become energy independent” – and clean energy “means tyrants like Putin won’t be able to use fossil fuels as a weapon”. Optimistic climate campaigners foresee a win-win: what could be better than starving the Putin war machine of funds while also saving the planet?
In future, clean energy will be seen as the “energy of freedom”, reckons Christian Lindner, Germany’s new finance minister. But others are sceptical. Renewables’ capacity will be slow to ramp up, and weaning Europe off Russian gas will be a slow process. Meanwhile, energy prices are spiralling, emissions are rising, and some analysts expect fossil fuels to remain vital in the short-term as a bridge to net zero.
What will the effect of sanctions be?
As part of the wide-ranging sanctions on Russia, Biden signed an executive order blocking US imports of Russian coal and gas, with the aim of sending a “powerful blow to Putin’s war machine”. The US can afford to act swiftly; it gets only 7% of its imported oil from Russia.
By contrast, the EU gets 40% of its gas and just over 25% of its oil from Russia. It announced cuts to imports of Russian gas by two-thirds within a year – though this target would obviously become moot if Putin follows through on threats to cut off the gas in response to Western sanctions.
In the UK, the Boris Johnson government is briefing media that it is looking at “alternative sources of energy that are cheaper and more reliable and less vulnerable to the whims of a dictator”. Kwasi Kwarteng, the business and energy secretary, said Britain would “phase out” imports of Russian oil by the end of 2022 and was “exploring options” to end Russian gas imports.
What is Johnson’s plan?
The government’s new “energy supply strategy”, which it has signalled it will unveil within days or weeks, is likely to include an increase in North Sea oil and gas production, and more investment in nuclear and renewables, including offshore wind. It could also include looking again at fracking for shale gas, which has been under a moratorium for the past two years, although Kwarteng is reportedly not a fan. A policy paper is due within the next couple of weeks.
The UK’s approach broadly reflects the fact that, in the short term, the Ukraine war means that Europe may be burning more coal, but in the long term it could drive a speeded-up green transition. Meanwhile, the whole question of the UK’s net-zero ambitions is becoming more central to politics. Pressure is growing on the right of the Conservative party for a watering down of net-zero targets.
What about consumers?
Unlike many countries in mainland Europe, the UK gets very little gas from Russia: the proportion varies between 2% and 4% . However, gas is a global market, and constrained Russian supply dramatically affects the price we pay. On Monday, UK wholesale gas prices spiked wildly to a fresh record of 800p per therm, before falling back to 501p – up 8% on the day and more than 12 times the level of a year ago, when prices were around 40p per therm.
Brent crude oil soared to $139 a barrel, and fuel prices have surged over the past fortnight. When it costs £100 to fill up a car, the benefits of going electric might start to outweigh the doubts. Alternatively, high fuel prices could help motivate a backlash against net zero. It seems increasingly clear that this tension will be at the centre of UK politics for the next decade or more.
What about China?
China has been sending mixed messages on Ukraine. While it may be in Beijing’s interests for a weakened Russia to be drawn further into its orbit, it is not in China’s interests for the international system to collapse, fuelling a global recession and regional conflicts.
Like the UK, China directly gets relatively little gas from Russia (5% of gas imports, 10% of oil). But overall it is a net importer of energy, and a big emitter of carbon, and will be heavily affected by the rocketing prices for oil and gas.
“Typically, when China experiences energy shock, its response is to burn more coal,” says Leslie Hook in the Financial Times. “So as oil and gas prices rise, we are likely to see China turn back to coal, which it can produce domestically, to keep power stations going.” China is still building new coal plants, and emissions there rose 4% last year, accounting for a quarter of the global rise in emissions.
So the war could derail progress?
The transition was already in trouble before the Ukraine crisis. Last year the surging post-pandemic recovery boosted global demand for power, and coal power output in Europe rose 18%, its first jump in nearly a decade. Coal use globally surged to record levels over the northern hemisphere winter, and 80% of the world’s energy is still from fossil fuels.
Most analysts, including within the industry, think the jump in coal will be short-lived. Yet there’s a risk that the economic instability created by Russia’s war of aggression will prove a long-term setback for the green transition, rather than an incentive, says energy economist Dieter Helm. What has happened this year is the first “net-zero price crisis”, he says. It is a bitter reminder of just how costly the green transition will be – and also how necessary.
from Moneyweek RSS Feed https://moneyweek.com/investments/commodities/energy/604563/net-zero-carbon-russian-aggression
via IFTTT
Carl Icahn: “King Kong” takes a bite of McDonald’s
In his terrifying heyday, the veteran corporate raider Carl Icahn went by the moniker “King Kong” on Wall Street. He was also known as “The Lone Wolf” and “The Great White Shark”. At 86, the fearless boardroom challenger is still predatory, says the Financial Times.
His latest prey is McDonald’s, where he has installed two new directors and is agitating for change. So far, so Icahn. What really surprised observers, though, was his stated rationale, which showed a distinctly “softer side”. He doesn’t like the way McDonald’s suppliers treat their pigs.
Activism in the blood
Icahn, who is known to have inspired Gordon Gekko’s “If you want a friend, get a dog” quote from the 1980s movie Wall Street, says he has felt “very emotional” about the pigs’ plight ever since they were brought to his attention by his vegetarian daughter, Michelle, says Forbes. Cynics reckon the “bigger mission” of the octogenarian billionaire (he is worth $16.6bn) is to set his legacy straight. Icahn’s new-found interest in sow husbandry coincides with a new HBO documentary, The Restless Billionaire – a retort against those who paint activist investors as “bad guys”, spliced with entertaining scenes of family life at his home in Indian Creek, Miami, an area known as the “Billionaire Bunker”.
The film gives a full rundown of Icahn’s “greatest hits” down the decades – from Texaco to Apple, says The Wall Street Journal. He also expounds upon his “methods and philosophy”, outlining what he sees as a crisis in corporate governance that is feeding into America’s current economic predicament. “Part of the reason for inflation is [poor] productivity,” he says. “And that’s because [some] of these CEOs are inept. They don’t care a hell of a lot.” His calling in life has always been to make them care. “He has activism in his blood,” says one Wall Street analyst.
Born in 1936 and raised in Far Rockaway, Queens, his father was a synagogue cantor and his mother a schoolteacher, with whom he had a “stormy” relationship, says Bloomberg. He got to Princeton to study philosophy, funding himself from poker winnings; dropped out of medical school to join the US army, before heading for Wall Street in 1961. Icahn’s first hostile takeover campaign in 1978 targeted appliance-maker Tappan: he sold off its assets and ultimately doubled his initial investment, says Forbes. “The thrill of the hunt got him hooked.” Future targets included the airline TWA (a campaign funded with debt from junk-bond king Michael Milken), RJR Nabisco, Marvel, Time Warner and eBay.
The Icahn lift
Some campaigns bombed, but collectively they reshaped the landscape. CEOs lived in dread of the terrifying words, “Carl Icahn is on the phone”. Investors followed his every move. When Icahn bought into a company, the subsequent upswing of shares became a phenomenon known as the “Icahn lift”. In 2013, Apple’s market capitalisation jumped by $17bn on the back of one of his tweets. In the run-up to the 2016 presidential election, Donald Trump floated the idea of making Icahn his Treasury Secretary. The idea came to nothing, though, as Icahn’s biographer later noted, his cold-blooded smarts would have been the perfect foil to Vladimir Putin.
In recent years, Icahn has been stumbling, says the FT. His contrarian philosophy of buying something “when no one wants it” sat at odds with the momentum-driven, tech-led bull market. But he may have the last laugh as bets in energy companies such as Occidental start paying off big time. “As the famous saying goes,” Icahn says gleefully, “the trend is your friend, till the end.”
from Moneyweek RSS Feed https://moneyweek.com/economy/people/604560/carl-icahn-profile
via IFTTT
Friday, March 11, 2022
Events to Look Out for Next Week
- Interest Rate Decision, Statement and Conference (JPY, GMT 03:00 & 06:00) –In February, BoJ steps in as yields continue to rise. The BoJ announced that it will buy an unlimited amount of bonds at a fixed rate, on February 14 in a bid to stop upward pressure on interest rates and re-affirm its commitment to an accommodative policy stance. The BoJ has been opting out of the general move towards policy normalisation that has become the mantra at many central banks and BoJ’s Kuroda has been adamant that for Japan there is still the need to keep easing.
- Retail Sales (CAD, GMT 13:30) – The Retail Sales are seen in cotnraction at -2.1% in January, with the core at -2.0% m/m from -2.5% m/m.
Click here to access our Economic Calendar
Andria Pichidi
Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
from HF Analysis /319016/
via IFTTT
Spring sees iconic art going under the auctioneer’s hammer
The spring auction season has arrived. Last week saw a flurry of high-profile sales, including the debuts of three modern masterpieces. First up was Pablo Picasso’s La fenêtre ouverte at Christie’s in London. The surrealist piece portraying Picasso’s muse and lover, Marie-Thérèse Walter, was painted on 22 November 1929, “in the midst of a heady moment of creativity”, according to Christie’s.
Picasso had met Walter just two years earlier. Forming part of the Atelier series of works, other examples reside in New York’s Museum of Modern Art and in the Musée National d’Art Moderne, in Paris. In the painting, Walter had yet to take on the appearance displayed in so many of Picasso’s later works. But even so, the young woman’s profile and neat 1920s bob are recognisable. Picasso, who put himself in the painting too, is much less so. The artist takes the form of two large feet crossed with an arrow. La fenêtre ouverte fetched £16.3m on 1 March.
Later that same evening at Christie’s in London, Francis Bacon’s Triptych 1986-7 was also up for sale for the first time. A meditation on the passing of time and the solitude of the human condition, Bacon’s familiar format of three paintings together draws on events in 20th-century history and the artist’s own life and experiences. The left-hand panel was inspired by a photograph of US president Woodrow Wilson leaving the Treaty of Versailles negotiations in 1919, the right by a photo of Leon Trotsky’s study taken after his assassination in 1940. And in the middle, a figure resembling John Edwards, Bacon’s partner at the time, in a similar pose to one struck by George Dyer, his former lover, who took his own life in 1971, and whom Bacon immortalised in Triptych August 1972, that now hangs in the Tate gallery, in London. Triptych 1986-7 sold for £38.5m, slightly above its low estimate.
Several other big names also passed under the hammer that week. Jean-Michel Basquiat’s Il Duce (1982), sold for ¥94.2m (£11.2m), again with Christie’s, but this time in Shanghai, underlining the growing importance of the Asian market. Back in London two days later, Self-Portrait on the Terrace (1984), by David Hockney, fetched £4.9m at Phillips. Singer Robbie Williams unloaded his two Banksy pieces, Girl with Balloon (2006) and Vandalised Oil (Choppers) (2006), for a combined £7m.
The stand-out sale of last week, however, went to yet another auction debutante: L’empire des lumières (1961), by Belgian surrealist René Magritte. The iconic work (pictured), one of 17 that form a series, contrasts day and night over a typical suburban house on a quiet street in Brussels. One possible inspiration for the piece is André Breton’s poem L’Aigrette, which opens: “If only the sun were to come out tonight”. It certainly came out for Sotheby’s in London that evening – the painting sold for £59.4m.
Luxury assets boom
© Phillips
Collectables had a good year in 2021. According to the Knight Frank Wealth Report 2022, released last week, alternative investments in all classes rose as investors sought stability away from the volatility in stocks.
The Knight Frank Luxury Investment index (KFLII), which tracks ten classes of collectables, from classic cars and art to wine and whisky, rose 9% on the previous year in the strongest annual growth since 2018. Watches and fine wine were the best-performing luxury assets, both appreciating by 16%, no doubt helped along by the series of high-profile watch auctions held at Phillips towards the end of last year.
November, for example, saw the sales of an “extremely important” Patek Philippe wristwatch (pictured), reference 2499 from 1952 for CHF3.5m (£2.9m), and a repeating grande and petite sonnerie wristwatch made by Philippe Dufour, which sold for CHF4.7m (£3.9m). As for fine wine, Champagne was the fastest appreciating region, rising 31% from a year earlier, with the 2008 vintage in particular attracting investors. Burgundy also had a good year, rising in value by a quarter.
Art was the third highest riser in Knight Frank’s index. Sales rose 13% year-on-year, driven by artworks by “blue-chip” artists, such as Jackson Pollock, whose Number 17 fetched $61.2m. Of the big auction houses Sotheby’s led the way, racking up sales worth $7.3bn in 2021, followed close behind by Christie’s with $7.1bn. But a shift is underway. Last year also saw the rise of “ultra-contemporary ‘red-chip’” artists, who use social media to build their followings, says Veronika Lukasova of analysts Art Market Research. The craze for all things NFT (non-fungible tokens) is the most visible expression of this trend. Leading auction houses sold “crypto art” worth a total of $227m in 2021, and that trend looks set to continue.
Auctions
Going…
Jewellery belonging to the late Vera Lynn is heading to the auction block with Toovey’s in West Sussex in aid of the singer’s charitable trust on 16 March. Lynn famously “captured the hearts of the nation during World War II with her uplifting musical performances and recordings”, says The Independent. She became known as the Forces’ Sweetheart for playing her part in rallying the troops as far away as Burma with the Entertainments National Service Association. Her family is now selling the rings, bracelets, necklaces, and brooches worn by Lynn to continue her charitable work. Headlining the sale is a large late-Victorian diamond-set heart-shape pendant locket pavé, set with cut diamonds and carrying a pre-sale estimate of between £7,000 and £10,000.
Gone…
© Heritage Auctions
The leather flying cap (pictured) worn by pioneering US pilot Amelia Earhart when she became the first woman to cross the Atlantic by aeroplane sold with Texas-based Heritage Auctions last week, says CNN. In 1928, Earhart had boarded the Fokker F.VIII “Friendship” piloted by Wilmer Stultz and Lou Gordon, as a passenger for the 21-hour journey between Newfoundland, in eastern Canada, and south Wales. Four years later, she would go on to make the journey alone. Then, in 1937, she and her navigator, Fred Noonan, disappeared somewhere over the Pacific when their Lockheed L10 Electra ran out of fuel. Their whereabouts have remained a mystery ever since. Her legend, however, lives on, says Heritage. Her leather flying cap sold for $825,000, ten times its pre-sale estimate.
from Moneyweek RSS Feed https://moneyweek.com/investments/alternative-investments/604542/spring-sees-iconic-art-going-under-the-auctioneers
via IFTTT
Evo Yachts V8 – a design masterpiece
Valerio Rivellini, the young Neapolitan designer of the new Evo Yachts V8, is a man who likes to sail, says Alan Harper in Power & Motoryacht magazine. His background is in dinghies and small cruising yachts, and the huge carbon steering wheels on each side of the cockpit of the Evo V8 are a “visible homage to the world of creaking masts and flapping canvas”. You could save a lot of space by swapping them for joysticks. But that’s not the point. “The Evo V8 is a design-led vessel, from its origami cockpit to the platform on the roof, with its miniature helm station and telescopic guardrails.”
Nostalgic it may be, but there are some clever modern touches too. The tender and the crane both stow under the hatches of the aft deck, and the crane serves as a hoist for the parasol. The rear window doubles as a backlit cinema screen; the salon windows open to turn it into an open-air area.
The yacht houses an “agreeable” VIP cabin in the bow, a small twin cabin, and “a rather magnificent midships owner’s suite with its own aft-facing lounge”, says Harper. From this private lounge, it’s “but a hop, step and jump into the sea”. “In the mornings, I like to leap into the water straight from bed,” says Rivellini, explaining the design.
The aft wings fold out to expand the entertainment area on the beach club deck to 25 square metres, and the seven-metre beam (width), on a boat just 24 metres long, “creates a lot of real estate”, says Sam Fortescue for Boat International. Up on the sun deck, complete with four “flush” sun loungers, “it’s not silent exactly with the engine running, but it is calm up here and the view is unbeatable. It is just one of this boat’s many surprises”. It’s fun to drive too: the twin Volvo Penta IPS 1,350 engines take the boat to a top speed of 24 knots, and the Bay of Cannes, in the south of France, “rushes out from under the hull in a mesmerising smooth sheet”. This V8 is a big step up from the previous flagship 18-metre R6 model.
Price: £3.2m plus tax. Length: 24 metres. Beam: 7 metres. Draught: 1.5 metres. Contact: evoyachts.com/en/v8
from Moneyweek RSS Feed https://moneyweek.com/spending-it/toys-and-gadgets/604544/evo-yachts-v8-a-design-masterpiece
via IFTTT
EURUSD – ECB maintained interest rates and accelerated APP reductions
EURUSD, H4
The European Central Bank (ECB) left interest rates unchanged yesterday, but surprised by announcing the end of the APP asset purchase program in Q3, with accelerating cuts in April at 40 billion euros, 30 billion euros in May and 20 billion euros in June compared to the previous schedule of EUR 40 billion in Q2, EUR 30 billion in Q3 and EUR 20 billion in Q4. It also revised down its forecast for 2022 GDP growth from 4.2% down to 3.7%, and amid the uncertainty of the war in Ukraine, the ECB raised its 2022 inflation forecast to 5.1% from 3.2%.
Meanwhile, on the US side yesterday, February inflation numbers were reported at a record 7.9% year-on-year increase from the 7.5% seen in January. This is the highest record since January 1982 (40 years) and will likely bolster the Fed’s aggressive policy tightening decisions at the meeting next week. As Fed Chair Powell said last week, he supports a further 0.25% interest rate hike (to 0.5%), but the Fed may move more aggressively if inflation does not fall as expected.
The higher-than-expected inflation report helped support the US Dollar overnight. The USDIndex rose to a high of 98.63 from yesterday’s low of 97.68, while last week’s unemployment numbers rose from a week earlier to 227k from 216k (modified from 215k).
Despite the surprise of the ECB accelerating the cuts in APP purchases, overall the ECB is still moving slower than the Fed. Meanwhile, Europe is experiencing price pressure from the Ukraine war, especially the price of energy which is fluctuating heavily.
Technical View:
EURUSD is regaining its foothold at 1.1000 below the MA50 after moving to a high of 1.1120 this week on the volatility of the US Dollar. And at the lower MA50 level, this short-term view of the pair is skewed again downward, where the MACD is now crossing the signal line near the 0 line and the RSI is falling back down to the 50 level, so the first support is at the bottom. It is now at the round number 1.1090 and the next key support is in the nearly two-year low zone of 1.1080. On the other hand, if the price is able to rise above the MA50 line, there will be the next resistance in the high zone first at 1.1125.
Important information on today’s economic calendar includes the February inflation report for Germany that was in-line with expectations at 0.9% and 5.1% y/y. Later today there is the UoM Consumer Sentiment Index, which is expected to have declined to 61.4 from 62.8.
Click here to access our Economic Calendar
Chayut Vachirathanakit
Market Analyst – HF Educational Office – Thailand
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distribution.
from HF Analysis /318995/
via IFTTT
Subscribe to:
Comments (Atom)
-
The new strain of covid found in South Africa could disrupt plans by governments and central banks to rebuild economies. Financial markets a...
-
Fidelity “FIS” is a global financial services technology company and a leader in providing technology solutions to merchants, banks and cap...
-
Asian Equities Sink on Covid FearsIt’s been a mixed start to the week for global equities benchmarks with US and European asset markets rema...
