Daily Report: Ukraine Tensions Hit Risk Markets, Dollar Mixed in Tight Range

Risk markets were mildly hit by deterioration in Ukraine’s situation. SP 500 closed below 2000 handle by dropping -3.38 pts to 1996.74 while DJIA closed -42.44 pts down at 17079.57. Asian equities are also generally lower with Nikkei down -0.3% at the moment while HK HSI is down -0.25% at the time of writing. The currency markets are rather steady though. Dollar continues to stay in tight range against European majors and yen and maintain bullish outlook. Meanwhile, the greenback is staying mildly bearish against commodity currencies.

Ukraine President Petro Poroshenko announced that he has cancelled the visit to Turkey because of “the sharp deterioration of the situation in the Donetsk region”. He also called for an emergency meeting to discussion the situation. NATO also released images that it said showed Russian artillery units operating in Ukraine and said that more than 1000 Russian soldiers had now joined separatists fighting in Ukraine. In a Reuters report, a NATO senior officer indicated that there had been “a significant escalation in both the level and sophistication of Russia’s military interference in Ukraine” over the past 2 weeks. Meanwhile, Germany and France have pledged to accelerate sanctions against Russia from. In a statement issued by the White House, US President Obama avoided the word “invasion” but noted that the actions used “in the last week a continuation of what’s been taking place for months”. He reiterated that the best tactics against Putin would still be isolating him with economic sanctions.

On the data front, Japan house Tokyo CPI core dropped back to 2.7% yoy in August while national CPI core was unchanged at 3.3% yoy in July. Unemployment rate rose to 3.8% in July, household spending dropped -5.9% yoy, retail sales rose 0.5% yoy, industrial production rose 0.2% mom, housing starts dropped -14.1% yoy. New Zealand building permits rose 0.1% mom in July, NBNZ business confidence dropped to 24.4 in August. UK Gfk consumer sentiment improved to 1 in August.

Looking ahead, Swiss KOF leading indicator, Eurozone unemployment and CPI will be featured in European session. US will release personal income and spending and Chicago PMI while Canada will release GDP, IPPI and RMPI in US session.

Daily Pivots: (S1) 1.2050; (P) 1.2060; (R1) 1.2073; More…

EUR/CHF reaches as low as 1.2048 so far as recent decline continues. Deeper fall could still be seen. But again, we’d continue to expect strong support above 1.20 to contain downside and bring strong rebound. Above 1.2115 will confirm short term bottoming and turn bias back to the upside for 1.2177 resistance.

In the bigger picture, EUR/CHF faced strong resistance from 38.2% retracement of 1.6827 to 1.0061 at 1.2646 and reversed. Sustained break of this level is needed to confirm larger up trend resumption. Otherwise, outlook will stay neutral for more range trading. But after all, downside of another decline attempt should be contained by SNB’s 1.2 floor.

GMT
Ccy
Events
Actual
Consensus
Previous
Revised
22:45
NZD
Building Permits M/M Jul
0.10%

3.50%

23:05
GBP
GfK Consumer Sentiments Aug
1
-1
-2

23:30
JPY
Unemployment Rate Jul
3.80%
3.70%
3.70%

23:30
JPY
Household Spending Y/Y Jul
-5.90%
-2.70%
-3.00%

23:30
JPY
National CPI Core Y/Y Jul
3.30%
3.30%
3.30%

23:30
JPY
Tokyo CPI Core Y/Y Aug
2.70%
2.70%
2.80%

23:50
JPY
Retail Trade Y/Y Jul
0.50%
-0.10%
-0.60%

23:50
JPY
Industrial Production M/M (JUL P)
0.20%
1.40%
-3.30%
-3.40%
1:00
NZD
NBNZ Business Confidence Aug
24.4

39.7

5:00
JPY
Housing Starts Y/Y Jul
-14.1%
-10.50%
-9.50%

7:00
CHF
KOF Leading Indicator Aug

97.9
98.1

9:00
EUR
Eurozone Unemployment Rate Jul

11.50%
11.50%

9:00
EUR
Eurozone CPI Estimate Y/Y Aug

0.30%
0.40%

9:00
EUR
Eurozone CPI – Core Y/Y Aug A

0.80%
0.80%

12:30
CAD
GDP M/M Jun

0.30%
0.40%

12:30
CAD
Industrial Product Price M/M Jul

0.20%
-0.10%

12:30
CAD
Raw Materials Price Index M/M Jul

0.70%
1.10%

12:30
USD
Personal Income Jul

0.30%
0.40%

12:30
USD
Personal Spending Jul

0.20%
0.40%

12:30
USD
PCE Deflator M/M Jul

0.20%

12:30
USD
PCE Deflator Y/Y Jul

1.60%

12:30
USD
PCE Core M/M Jul

0.10%

12:30
USD
PCE Core Y/Y Jul

1.50%

13:45
USD
Chicago PMI Aug

56.3
52.6

13:55
USD
U. of Michigan Confidence Aug F

80.4
79.2

Subscribe to our daily and mid-day newsletter to get this report delivered to your mail box

This entry was posted in Binary Options Daily Related News and tagged , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *