US President Joe Biden has announced a new round of sanctions against Russia’s invasion of Ukraine. Biden called out Putin for disregarding the U.S. and other allies’ attempts to prevent an attack.
“He rejected every good faith effort the United States and our allies and partners made to address our mutual security concerns through dialogue to avoid needless conflict and avert human suffering,” President Joe Biden said.
"Putin is the aggressor. Putin chose this war. And now he and his country will face the consequences.", Biden said. “Putin’s choice to make a totally unjustifiable war on Ukraine will make Russia weaker and the rest of the world stronger,” he said.
US futures recovered from the previous session sell-off supported by the upbeat earnings results and better-than-expected macro-economic data. The US weekly jobless claims decreased to 232 thousand in the week ended February 19th and the US GDP expanded an annualized 7% on quarter in Q4 2021.
Crude oil futures struggling to find the upside momentum after the previous session pullback. The oil prices reversed from the highs after President Joe Biden said on Thursday the United States is working with other countries on a combined release of additional oil from global strategic crude reserves.
In the currency market, the US Dollar Index, which measures the greenback’s value against the basket of six major currencies price action remains volatile as uncertainties remain high. Meanwhile, the Japanese Yen regain the bullish sentiment against the Euro and GBP.
The Safe-haven metal retreats back to below $1800 after the Risk sentiment improved overnight after Biden unveiled new sanctions on Russia. Moving ahead to the North American session, the gold traders should monitor the release of the Fed's preferred inflation gauge - the core PCE Price Index.
On the data front, the US reported the latest GDP data. The data showed the US gross domestic product increased at a 7% annualized rate during the last quarter of 2021, a slight increase from the 6.9% annualized rate reported in January.
Moving ahead today, the important events to watch:
US – Personal income: GMT – 13.30
US – Durable goods orders: GMT – 13.30
Worldwide, more than 425 million people have been confirmed infected and more than 5.91 million have died. The United States has confirmed over 78 million cases and has had more than 920,000 deaths from COVID-19, the highest totals in the world.
Technical Outlook and Review
EURUSD: The currency pair trades below 1.1180. On the downside, the next key support area to watch today is 1.1120/00. On the flip side, the immediate resistance at 1.1200 followed by 1.1230.
The important levels to watch for today: Support- 1.1120 and 1.1080 Resistance- 1.1200 and 1.1230.
GOLD: For today, the first resistance is located around $1930, a break above this level will confirm a possible move to $1945/50. On the downside, any meaningful pullback now seems to find some support near the $1900 zones, below which the slide could further get extended towards the $1888/70 region.
The important levels to watch for today: Support- 1900 and 1870 Resistance- 1928 and 1950.
Quote of the day - “If most traders would learn to sit on their hands 50 percent of the time, they would make a lot more money.” – Bill Lipschutz.