Several days ago, global markets fell into frenzy on the Russia-Ukraine conflict going on. The Russian military sent troops the the border between the two countries, although recent reports claim that some of the troops have been sent back to base. There are still no clear signs that de-escalation has occurred on the borders, but diplomatic engagement still seems on the table for Russia although it is hard to tell. The outcome of this occurrence is completely uncertain, and the relation between Russia and forex is causing some wild behavior.
If one thing is for certain, the growing tensions cause the USD to fly higher on the risk-off sentiment from investors. At the same time, when we heard report of calling troops back, the dollar fell while currencies like GBP, EUR, CAD, AUD and CHF began to rise over the USD. Sadly, escalating conflict leads to a higher dollar and gold price, so if we disregard trading for a minute, we should just hope that the tensions ease even at the cost of a falling USD.
Oil prices rose to the highest level in 8 years to the high $95s yesterday on escalating conflict. Investors fear that if this incident gets worse, oil drilling will cease. This caused a surge in oil price on the anticipation of lower production. USOil dropped 2.89% at the time of writing this after news of some troops returning home.
American, German and British indices rose this morning on the recent news. However, if tensions were to get worse, we could probably see another decline on all sides. Indices are probably not the best thing to trade during this time due to the higher volatility that can come into play in the global equities markets. This is true especially during attempts at negotiations ahead because we can't say who will agree to what and if Russia will accept control over a small part of Ukraine or if there will be a military pullback.
We are still waiting for updates and will be keeping up with further news.
GDP numbers came in lower than expected in the US, marking the third straight drop in economic output. This is usually good news for the stock market indices and gold, however, bond yields continue to hold up above 5.1%. Here are some potential trade setups for both dollar and index longs depending on how the […]
Hi, I’m Nick! I am the founder of A1 Trading, market analyst, YouTuber, and creator of the EdgeFinder software tool. I caught a huge winner on USoil with the help of the EdgeFinder! In this article, I’ll walk you through my thought process behind the trade and how I found this crazy runner! Finding My […]
Last Friday's report showed a significant change in global market sentiment from smart money. What COT signaled has turned ultra-risk-off for traders who have been hoping for Fed fears to subside. This news could spark up worries about higher interest rates for the long term. EdgeFinder Analysis GBPUSD is now a -12 on the EdgeFinder […]
