Should We Be Wary of Price Fluctuations One Week After the Invasion of Ukraine?
04.03.2022
- U.S. Employment Report
- Canada-Ivey Purchasing Managers' Index
In the U.S. currency market the previous day, a risk-off sentiment took hold as the second round of ceasefire talks between Russia and Ukraine failed to yield progress, leading to a third round of negotiations, and the U.S. dollar rose against the euro.The EUR/USD pair fell from 1.112 to 1.100, continuing its decline in the absence of any support at lower levels. Since there appears to be no significant support near 1.085 on the weekly chart, traders should remain cautious of a continued decline without any pullbacks.
European currencies fell further following reports of Russian airstrikes near nuclear power plants, with the euro/yen pair dropping from 128.50 to 126.93.Like the euro/U.S. dollar pair, the euro/yen has already broken below its support level, so traders should be cautious as the pair could continue to fall toward the next support level at 126.00.
Today, during European trading hours, Germany’s trade balance will be released at 16:00, France’s industrial production and manufacturing production index at 16:45, the UK’s construction PMI at 18:30, and the Eurozone’s retail sales at 19:00.at 22:30, Canada’s housing permits and fourth-quarter labor productivity index, along with the U.S. employment report, and at 24:00, Canada’s Ivey Purchasing Managers’ Index are scheduled to be released. With one week having passed since Russia’s invasion of Ukraine, we will closely monitor the situation while assessing price movements.
Author: Keisuke Sakurai
