March 10, 2022
USD/CHF: The USD/CHF pair met a significant resistance level near the 0.9300 level as investors shifted to risky assets during easing Russia-Ukraine tensions. Previously, investors preferred the US dollar instead of the Swiss Franc. Investors expect a 50 basis point interest rate hike at the upcoming monetary policy meeting. To deal with the rising inflation, Federal Reserve may limit the liquidity injections in the economy. In addition, investors will also focus on US Consumer Price Index data and Initial Jobless Claims due to be released today, while Switzerland will report Trade Balance later next week.
GBP/USD: Cable has rebounded from Wednesday’s lows after investors cheered the much-awaited compromise between the Kremlin and Kyiv. This led to a strong reversal in the undertone of the market as investors were getting rid of the risk-sensitive assets earlier on the escalation in geopolitical tensions while the demand for safe-haven assets was growing. Market participants dumped the cable amid the ban of Russian oil for imports. It seems that positive expectations will shift traders’ attention towards US CPI numbers mentioned before.
WTI: WTI oil showed a bearish impulse yesterday during the US trading session after the head of the International Energy Agency hinted that member nations could agree to release 60 million barrels. Some traders also said that markets were taking a more relaxed view on the US ban on Russian oil imports announced yesterday, and this was pressing on bulls. With Iran’s chief negotiator in the nuclear talks having arrived back in Vienna yesterday to keep discussing, most probably there will be a deal that would open the way for over 1.3 million barrels per day of Iranian crude oil exports to return to global markets. In the more immediate future, the focus will return to the global crude oil inventory situation with the release of weekly official US data.