This is what you need to know to trade today tuesday march 2:
Safe-haven currency flows took control of markets in the second half on Tuesday, as Russia’s continued aggression against Ukraine despite harsh sanctions imposed by Western nations forced investors to seek refuge. Market participants are increasingly concerned about the possible negative impact of a protracted war between Russia and Ukraine on economic activity world. Eurozone inflation data and US ADP private sector employment will appear on Wednesday’s economic calendar. More importantly, the Russian and Ukrainian delegations will meet for a second round of peace talks. Finally, FOMC Chairman Jerome Powell will testify before the House Financial Services Committee at 15:00 GMT.
See: Powell Preview: Rethinking Because of the War? The Fed will stay on track and the dollar will rise
See: Previous US ADP report for February: Job creation returns
The US dollar outperformed its rivals on Tuesday and the DXY dollar index gained 0.7% before settling near 97.50 at the start of the European session on Wednesday. The 10-year US Treasury bond yield it lost almost 6% and hit its lowest level since early January below 1.7%. the barrel of West Texas Intermediate it was up more than 10%, trading at its highest level since September 2013 at $109.30. The S&P 500 lost 1.5% on Tuesday and S&P 500 futures are flat early Wednesday.
The EUR/USD fell below 1.1100 on Tuesday for the first time since June 2020. After a technical correction during Asian hours on Wednesday, the pair started to slide towards 1.1100 at the start of the European session.
The GBP/USD It came under heavy bearish pressure during the American session on Tuesday and extended its decline early on Wednesday. The pair is trading in negative territory below 1.3300.
The USD/CAD posted gains on Tuesday but remains on the defensive on Wednesday morning. Rising crude oil prices appear to be helping the commodity price-linked CAD remain relatively resilient against the US dollar. Later in the day, the Bank of Canada will announce its monetary policy decision, where it is expected to increase its rate by 25 basis points to 0.50%.
See: Bank of Canada Decision Preview: Bullish Rate Hike to Exacerbate USD/CAD Pain
Data from Australia showed earlier in the day that the economy grew 4.2% annually in the fourth quarter. This figure exceeded the market expectation of 3.7% and allowed the AUD to find demand. Despite the broad strength of the US dollar. The AUD/USD is posting small daily gains above 0.7250.
The gold continued to attract investors and soared towards $1,950 on Tuesday. XAU/USD remains relatively calm below $1,940 at the start of the European session on Wednesday.
The Bitcoin ignored the negative shift seen in risk sentiment and managed to move higher on Tuesday. BTC/USD is now trading in a relatively tight range near $44,000. The ethereum posted gains for the second time in a row on Tuesday, but appears to have entered a consolidation phase after testing the $3,000 level.
Source: Fx Street
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