March 30, 2022
USD/CHF: The USD/CHF pair has met strong resistance at the 0.9375 level and fell after reaching it as the improved risk appetite slowed down the rally in the US dollar. The positive outcome of the peace talks between Russia and Ukraine supported the market sentiment. The US dollar index has lost its gains, while positive US Consumer Confidence and JOLTS Job Openings data has failed to provide any optimism for the greenback buyers. US ADP Employment Change and annualized Gross Domestic Product will also be important to watch. This data is going to be published today as well as the Monetary policy report by the Swiss National Bank.
EUR/USD: The major currency pair was back under pressure during the US session trading in the positive after correcting from the peace talk rally highs of 1.1140, its highest level in the last two weeks. In response, the safe-haven US dollar fell against a basket of its counterparts yesterday as measured by the DXY index, which pulled back from the lows. Meanwhile, steps toward a potential peace deal in Ukraine would be expected to significantly support the euro, as Europe suffers from high energy prices triggered by the conflict and the ban on Russian energy. The markets are very much driven by headlines, and the volatility is starting to wipe out some of the risk-on gains made at the start of the day.
WTI: West Texas Intermediate crude oil prices started to show bearish dynamic again but managed to recover from below the 100 level. The market is also dealing with the impact of lockdowns in China which are weighing on crude oil demand. Analysts said that a sharp slowdown in mobility in Shanghai, which accounts for 4% of China’s oil consumption, could slow down consumption in China. OPEC members kept following a cautious tone ahead of this week’s meeting. Saudi Arabia and UAE have suggested that it’s not necessary to accelerate output increases, with several ministers highlighting how their production strategy has stabilized the oil market.