European Open Market Update
Heritage Adisa, CMSA?
Financial Market Professional | Helping You Understand and Navigate Financial Markets through CFDs.
Wednesday, February 16, 2022 (European Session)
Light Risk On Market Environment?
Risk assets hold on to gains on hope of further easing of tensions as Russia withdraws some troops from Ukraine borders.?
Although comments from President Biden that withdrawal has not been verified by the US and Ukraine reporting Cyber attacks on their defense network and 2 banks not long after the announcement have capped further gains.?
Markets are still very sensitive to further Russia-Ukraine headlines as well as the back drop of rising inflation and Central Bank tightening as UK CPI prints hot (30-year high at 5.5%) and incoming FED meeting minutes.???
Equities mostly hold on to yesterday's gains but US bourses have failed to create fresh highs so far, trading mostly flat -US500 trades at 4450. USOil bounces off yesterday's low but is currently capped close to $91/bbl.?
领英推荐
VIX continues to ease -now trading just above 25; USDIndex heads lower amid positive environment towards previous range high around 95.70 ahead of Retail Sales and FED minutes.??
In FX, it is the antipodeans that lead the Majors, AUD first, followed by Kiwi and CAD while Safe Haven JPY and USD along with CHF lag so far.?
Further upside on AUDJPY could be expected if we get a break and retest of 83.000 or a pull back towards yesterday’s high while GBPJPY upside from a break and retest of 156.800 on hot inflation and 3rd consecutive rate hike expectation could also be looked at.?
Key risk to these outlooks will be any negative headline on Russia-Ukraine tensions that signals that we are not out of the woods yet or focus turning back to incoming Central Bank rate hikes which is a negative for Equities and by extension overall risk sentiment.
In the day ahead, Canadian Monthly CPI, US Retail Sales and FED meeting minutes are all scheduled on the calendar.
Click the link to watch the video