One Month After the Invasion of Ukraine: Concerns Over a Resurgence of Geopolitical Risks?
23.03.2022
- UK Consumer Price Index
- Remarks by U.S. Federal Reserve Chair Powell
The U.S. dollar weakened against the euro the previous day, with the EUR/USD pair rebounding by about 80 pips from 1.096 to 1.104.From a technical perspective, the EUR/USD pair rebounded from the lower boundary of its 4-hour upward channel, leading to yesterday’s rise. We will be watching closely to see if the rally continues toward the upper boundary of the channel, around 1.114.
With Ukrainian President Zelenskyy set to deliver an online address to the European Parliament today at 6:00 p.m., European currencies are trading mixed. While the euro rebounded against the U.S. dollar, it has been weakening against Oceania currencies, with the euro/Australian dollar pair falling for the fourth consecutive day and trading around 1.475.
Today’s schedule includes the UK Retail Price Index, UK Consumer Price Index, and UK Producer Price Index at 16:00 European time; the Turkish Consumer Confidence Index at 17:00; the South African Consumer Price Index at 20:00; the U.S. MBA Mortgage Applications Index at 21:00 U.S. time; and, at 21:00 U.S. time, remarks by UKremarks by BOE Governor Bailey and remarks by Fed Chair Powell; at 23:00, U.S. New Home Sales; at 23:30, U.S. Weekly Crude Oil Inventories; and at 28:00, remarks by U.S. St. Louis Fed President Bullard.Tomorrow marks one month since Russia’s invasion of Ukraine, but I intend to continue monitoring the euro’s direction while taking geopolitical risks into account.
