The markets are failing to keep this morning’s rally going amid bad news from Ukraine and worries around the coming earnings season. Energy prices have come a little lower and this should help with the coming inflation numbers but not change things too dramatically this week.
Apple, Microsoft, Amazon, Facebook, Tesla, and Google all lost 2% or more at the end of the London session as the US indices started off lower. As another risk-off indicator, the Gold/Copper ratio is also showing higher highs and lower lows on a daily basis and is higher today.
Possibly the market is preparing for the upcoming earnings season or there are no scheduled economic data releases. Silver and gold are both up by 0.39% and 0.87%, respectively, while the energy complex is generally down. According to the Federal Reserve Bank of New York's March 2022 Survey, short-term inflation expectations rose across all age groups, education levels, and income levels. But the expectations for medium-term inflation decreased.
Brent has come lower having gone sideways for the last two days of last week. I have a target of $94.76 which would fill the gap from the Ukraine invasion.
After watching the GBPJPY come off from the London open highs, I figured there could be a bit of profit-taking or a good pullback to the day’s breakout level. Markets generally don’t only travel in one direction, and I’d rather take profits at the highs than let the price come back down to stop me out at a lower level.
This trade takes the account's profits up to 20% since opening the new account and that is a good number to protect. I’ll look for a new entry when we find some definite support. There is also the worry around the UK GDP data that came out showing the UK economy grew at a softer pace than expected. UK GDP rose by 0.1% month-over-month.
The war in Ukraine is escalating again with the DPR taking over the city of Mariupol and news that the Russians are regrouping around Donetsk. The Austrian Chancellor Nehammer talked directly with Russian President Putin and will give a press conference this evening.
The EURUSD has been trading around the 1.0900 to 1.0880 levels which were this week's opening prices. The failure to stay above 1.0920 suggests that the EURUSD will test the 1.08200 in the coming sessions.