Here is what you need to know on Tuesday, March 8: The greenback weakened slightly against its major rivals in the early America
Here is what you need to know on Tuesday, March 8:
The greenback weakened slightly against its major rivals in the early American session on Monday but didn’t have a difficult time regathering its strength with safe-haven flows remaining in control of markets. After rising 0.75% on Monday, the US Dollar Index seems to have gone into a consolidation phase above 99.00 early Tuesday. Fourth-quarter Employment Change and GDP data will be featured in the European economic docket ahead of January Goods Trade Balance and IBD/TIPP Economic Optimism Index figures from the US.
Following the third round of talks between the Russian and Ukrainian delegations on Monday, sides have failed to make any progress in reaching a truce or ceasefire. Speaking on the matter, a Ukrainian negotiator noted that “small positive developments” were made on the issue of humanitarian corridors. The S&P 500 Index lost nearly 3% on Monday and US stock index futures are losing between 1.2% and 1.5% in the early European morning.
According to the Financial Times, the European Union is planning to cut Russian gas imports by two-thirds in the next 12 months. Meanwhile, Reuters reported that the US could act alone to ban Russian oil imports without the participation of its European allies. The barrel of West Texas Intermediate gained 5% on Monday and was last seen rising 2% on a daily basis at $122.70.
EUR/USD came within a touching distance of 1.0800 during the European trading hours on Monday but managed to erase a small portion of its daily losses. The pair is moving sideways near 1.0850 early Tuesday.
GBP/USD lost more than 100 pips on Monday and struggles to make a meaningful recovery on the second day of the week. The pair is trading at its lowest level since October 2020 near 1.3100.
USD/JPY closed in positive territory on Monday and continues to edge higher toward 115.50 on Tuesday. Earlier in the day, Bank of Japan (BOJ) Governor Haruhiko Kuroda said that it would not be appropriate to tighten the policy or withdraw stimulus even if energy and commodity costs push up inflation.
After staying surprisingly resilient against the dollar last week, the AUD came under selling pressure during the Asian trading hours. Australia announced that it will be imposing new targeted sanctions on the Armed Forces of the Russian Federation. AUD/USD was last seen losing 0.5% on the day at 0.7285.
Gold continues to capitalize on safe-haven flows and trades at its highest level since August 2020 above $2,010 in the early European session.
Bitcoin declined to $37,000 on Monday but staged a modest recovery. BTC/USD is trading in a narrow band above $38,000. After posting losses in the previous two days, Ethereum stays relatively quiet and clings to modest daily gains near $2,500 on Tuesday.
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