Market Update 24th March 2022

Good morning from Cremello, here's your Thursday market update.

Risk sentiment flows and mixed PMI data has helped maintain USD strength seen on Wednesday carry on into this morning. The cautious mood, as we long for some positive news out of Ukraine, has pushed the DXY towards 99.0. NATO leaders have called an emergency summit in Brussels today, where the next steps for Ukraine's status and the ongoing crisis will be discussed. Both Boris Johnson and Joe Biden will be in attendance.

GBPUSD has staged an intraday come back after falling to the middle of 1.31 this morning. Mixed PMI data from the UK saw bears take control of the cable, the manufacturing PMI declined to 55.5 in March from 58 in February. Services PMI however came in above expectation at 61, instead of the expected 58 and previous 60.5. A blow to the manufacturing sector could be indicative of the fears felt in the UK amid the Russian invasion, and its contribution to soaring prices, issues with supply and as a result, slowed economic growth. Rebounding to 1.32 by this point however, perhaps bulls are hoping that the NATO summit will help contribute to some sort of diplomatic solution to the Ukraine crisis. February Durable Good Orders and Weekly Initial Jobless Claims might help send the pair towards 1.316, and if it falls below this key pivot point then additional losses can't be disregarded.?

EURUSD has fell beneath 1.10 again on Thursday as USD strength weighs on the Euro within the pair. Initial momentum after positive PMI data from Germany and the Eurozone quickly fell away, and investor attention now quickly turns data from the US and the NATO summit.?

GBPEUR hasn't been effected by the mixed PMI data from the UK. GBP seems a safer option amid the climate right now and this price reflects that. Positive PMI data failed to support the Euro and in turn the pair trade above 1.20 currently. Despite both currencies respective economies faltering amid the Ukraine war, the Euro will be a victim of its location aside from anything else.

With the key data to come and headlines from the NATO summit, expect a dynamic end to the day and we'll be back for an update on Friday.