March 09, 2022
USD/JPY: The USD/JPY has been showing a bullish dynamic for the second day in a row during the Asian trading session. The risk-off market mood on Wall Street seems to affect Asian equity futures, pushing them lower. Geopolitical headlines keep boosting the market volatility while the US and UK announce more sanctions. Both countries banned imports of Russian oil, which could lead to another upside in this rally. The US released featured Trade Balance, which printed a deficit, while Imports increased. The Japanese macroeconomic data showed that Gross Domestic Product rose less than expected in the fourth quarter, which also will probably send the USD/JPY prices higher.
USD/CAD: Loonie has crossed February’s high and reached the highest level this year. The rally was quite surprising taking the growing oil prices and improved risk appetite among investors. The US has banned all imports of Russian energy, including gas and oil. This has sent the oil prices near $12 per barrel. Canada, being the largest exporter of oil to the US has failed to capitalize on growing oil prices and return of risk-on impulse. Additionally, US Energy Information Administration will provide a weekly crude oil stockpiles report today, which will have a major impact on oil prices.
Gold: Yellow metal is edging lower in the early Asian session after it has almost reached all-time highs. Meanwhile, the three main US indexes ended up lower yesterday as traders took on board the latest developments around the Eastern Europe crisis. Gold pulled back the majority of the session’s gains and met buyers at the 2000 level. Generally, demand for the American currency eased, as concerns about developments in Eastern Europe cooled down a bit. Meanwhile, markets are in anticipation of this week’s inflation data and next week’s results of the Federal Open Market Committee’s meeting. Overall, however, risk sentiment remains low as the US announced the ban of oil and gas imports from Russia.