- Russia-Ukraine Fears Continue to Hamper Currencies
- Easing PMIs and Focus on Fed
- Stocks Slide as Caution Returns
The forex market has continued its recent trend toward US Dollar led strength. This is a reignition of the same firm USD that had been seen last week when Russia first moved into Ukraine. Slight moves toward more optimism have been curtailed today as fears remain in place on what will happen next. Domestically, PMIs dipped back again as focus turns to the NFP jobs data and any actions of the Fed on interest rates. On Wall Street, risk aversion returned as markets slid back with the early trading for Friday also pointing downward.
Currencies Under Pressure as War Drags On
There was renewed pressure on global currency and in turn those forex trading anything other than the US Dollar on Thursday. This comes as traders seek continued support from safe-haven currencies such as the Dollar and Japanese Yen in uncertain periods. Hopes of any peace agreement that had been raised early in the week no seem to be dashed for the moment at least.
This comes as Russia has reportedly begun to attack the largest nuclear power plant in Europe which is located in Ukraine. The shelling has sparked fears that have sent the Euro to new lows close to 1.10 against the Dollar although it recovered slightly at the end of the day. The Pound has also felt the pressure, moving close to 1.33 before steadying slightly higher to close out the session.
Fed Moves on Interest Rate in Focus
Back in the US, forex brokers and traders alike will be looking to domestic figures to provide some respite from the ongoing international turmoil. PMIs for February softened in the US in what was an unexpected move as other data including the Producer Price Index which jumped more than 30% year on year for January, continue to signal strong inflationary pressure.
On the slate to finish the week are NFP job numbers. These could move the market on Friday depending on the outcome while the broader market focus remains on Jerome Powell and how the Federal Reserve will approach any raise of interest rates which has been rumored for some time.
Volatile Trading Continues on Wall Street
Stocks moved lower again on Thursday in what can be categorized as another wild week for the street which has moved sharply between positive and negative days. Renewed uncertainty around the next move of Russia in the conflict with Ukraine appears to be the main event pulling the market lower. Specifically, reports that a major Ukrainian nuclear plant has come under attack disrupted stocks late in the day.
The tech-heavy NASDAQ was the big loser of the day with losses closing above 1.5%, while the Dow Jones which had been positive for much of the day also closed almost 1% lower. As uncertainty continues, the futures market has dipped lower still.