March 04, 2022
EUR/USD: The EUR/USD currency pair came under heavy selling pressure after news hit the wires that Europe’s largest nuclear power plant in Ukraine was attacked by Russia. Markets started contemplating radiation risks after a fire was reported on Russia’s shelling. The risk sentiment was heavily hit, with the S&P 500 futures down 1.33% at one point while the US dollar index jumped to the highest levels since mid-2020 at 98.08. This led to the crashing of the EUR/USD close to the 1.1000 psychological level. Looking ahead, the developments related to the Russia-Ukraine war will continue to remain as the main market driver, as traders eagerly await the US Nonfarm payrolls data for fresh USD valuations.
SELL LIMIT 1.1056/TP 1.0985/SL 1.1100
GBP/USD: The GBP/USD attracted significant offers from the market participants and slipped near 1.3316 amid the Russian attack on Europe’s largest nuclear power station in Ukraine. The headline brought a broad-based selling in the risk-perceived assets as investors considered it further escalation in the Russia-Ukraine war. Meanwhile, GBP/USD has been balanced in a range of 1.3273-1.3437 since February 24 after a steep fall amid the absence of any potential trigger that could underpin the sterling against the mighty greenback. The US dollar index (DXY) is looking to reclaim 98.00 amid rising uncertainty over the geopolitical risks. Also, the upbeat US Initial Jobless Claims may strengthen the DXY further. Apart from that, investors will also focus on US Nonfarm Payrolls, which are due today.
SELL STOP 1.3320/TP 1.3280/SL 1.3340
XAU/USD: Gold is on an adrenaline rush to reclaim $1,950.00 as the Russian military has started shelling at Europe’s largest nuclear plant. This has brought a fresh wave in the risk-aversion theme and investors have started diverting their funds in the precious metal. Apart from the risk-off impulse due to geopolitical tensions, the gold prices may rally further on a modest tightening stance by the Fed. Powell’s testimony has backed a 25 bps interest rate hike against the half a percent one to coincide with the Ukraine crisis and soaring inflation. Meanwhile, the US dollar index (DXY) has slipped near 97.73 despite upbeat US Initial Jobless Claims on Thursday. Going forward, the US Nonfarm Payrolls from the Bureau of Labor Statistics will be the major event to keep an eye on today.
BUY 1942.00/TP 1956.00/SL 1935.00