The Russian ruble has dropped to a fresh 15-month low against the US dollar on Tuesday after Russian President Vladimir Putin signed a decree to recognize two breakaway regions of eastern Ukraine as independent entities.
"I deem it necessary to make a decision that should have been made a long time ago - to immediately recognize the independence and sovereignty of the Donetsk People's Republic and the Lugansk People's Republic", Putin said.
EQUITIES
Asian shares extend lower and US futures near the session low as investors fear a Russian invasion of Ukraine might lead to a large-scale conflict.
On the earnings front, Home Depot, Teladoc and Macy’s, are amongst those reporting the last quarter financial results today.
OIL
Crude oil futures returned back to the highs supported by the continued uncertainty around the Ukraine crisis. Overall the momentum remains bullish throughout the Asian session.
CURRENCIES
In the currency market, the New Zealand dollar is trading steady against the US dollar and Euro ahead of the RBNZ meeting, the central bank is widely expected to hike rates at the Wednesday meeting. While the Euro struggling to find the upside momentum against the greenback and British pound.
GOLD
The Safe-haven metal hits a new session high on Tuesday morning as geopolitical friction keeps tensions high, which increases the demand for safe-havens. At the time of writing, the metal trades above $1900.
Economic Outlook
On the data front, the UK, Eurozone, and Germany reported the latest PMI data on Monday. UK Manufacturing PMI remained steady at 57.3, while the Services PMI impressed with a reading of 60.8, up from 54.1. Eurozone Manufacturing PMI went down to 58.4 in February of 2022 from 58.7 in January, and below market forecasts of 58.7.
Moving ahead today, the important events to watch:
US: Manufacturing PMI – 14.45 GMT
US: CB consumer confidence – 15.00 GMT
Coronavirus update:
Worldwide, more than 420 million people have been confirmed infected and more than 5.9 million have died. The United States has confirmed over 77 million cases and has had more than 910,000 deaths from COVID-19, the highest totals in the world.
Technical Outlook and Review
EURUSD: For today, the first nearest support level is located at 1.1290. If it breaks below this level, it will head towards the next support level which is located at near 1.1270 then 1.1250. On the flip side, the immediate resistance is near 1.1350.
The important levels to watch for today: Support- 1.1290 and 1.1260 Resistance- 1.1350 and 1.1390.
GOLD: in the short-term perceptive, the immediate bias will remain bullish as long as prices are held above $1900. On the flip side, any break below $1895 then the next support near the $1888 followed by $1880 level.
The important levels to watch for today: Support- 1895 and 1880 Resistance- 1913 and 1920.
Quote of the day - "To win in the markets, we need to master three essential components of trading: Sound psychology, a logical trading system, and an effective risk management plan.”