EUR/USD could still resume the downside in the next week.24-hour view: “Yesterday, we held the view that the ‘sharp drop in EUR could extend but the major support at 1.1105 is unlikely to come under threat’. However, EUR recovered some of its initial steep decline as it rebounded to close at 1.1219 (-0.43%). Downward pressure appears to have eased and EUR is likely to trade sideways for today, expected to be within a range of 1.1160/1.1260.”
Next 1-3 weeks: “We have held a negative view for more than 2 weeks now. After EUR plunged to 1.1105, we highlighted last Friday (25 Feb, spot at 1.1205) that further EUR weakness is not ruled out but EUR could trade above 1.1105 for a couple of days first. There is no change in our view even though downward momentum is showing tentative signs of easing. Overall, only a breach 1.1290 (no change in ‘strong resistance’ level) would indicate that EUR is not ready to move below 1.1105. Looking ahead, below 1.1105, there is another is another strong support at 1.1080.”
EUR/USD drops below 1.1200 amid Ukraine crisis, busy docket.EUR/USD is trading close to 1.1200, as the US dollar remains strongly bid amid a return of risk-off flows after the Russia-Ukraine peace talks end with no progress. The US Treasury yields advance as firmer US inflation expectations. Russia-Ukraine updates, German inflation and US ISM PMI eyed.
EUR/USD News ..GBP/USD defends 1.3400 despite USD rebound, risk-off mood.GBP/USD is defending 1.3400, having paused its rebound from two-month lows. Cable consolidates amid a cautious market mood and broad US dollar rebound, absorbing the latest Russia-Ukraine developments. UK/US PMIs awaited.
GBP/USD News …Gold stays easy near $1,900 with eyes on Ukraine.Gold begins March with mild losses after the biggest monthly jump since May. Markets await key trigger on Ukraine-Russia standoff after peace talks ended without any conclusion. Yields favor USD but Biden’s SOTU, Powell’s Testimony and US NFP will be a crucial catalyst.
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