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 yesterday, 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 until around 1.085 on the weekly chart, we should remain cautious of a decline without any pullbacks.
European currencies have fallen 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/dollar pair, the euro/yen has already broken below its support level, so traders should be cautious of a continued decline toward the next support level at 126.00.
Today, at 4:00 p.m. CET, Germany’s, at 16:45 French industrial production and the manufacturing PMI, at 18:30 the UK construction PMI, at 19:00 Eurozone retail sales, at 22:30 Canadian housing starts and the fourth-quarter labor productivity index, U.S. employment data, and at 24:00 the Canadian Ivey PMI.With one week having passed since Russia’s invasion of Ukraine, we will monitor the situation closely while assessing price movements.
Author: Keisuke Sakurai
