Further sanctions on Russia imminent; Pfizer rumoured to restate interest in AstraZeneca

<p>The FX markets start the week in the lacklustre fashion that has been all too evident of late, which I find rather surprising following the […]</p>

The FX markets start the week in the lacklustre fashion that has been all too evident of late, which I find rather surprising following the comments from the G7.

Reports from the White House suggest that new sanctions could be imposed on Russia as early as today after the G7 nations concluded the Kremlin isn’t abiding to the recent agreement made in Geneva.

The FX markets have instead focused on the possibility of a merger and acquisition flow following media reports that US giant Pfizer could renew its interest in AstraZeneca by making a public declaration of interest this week. Analysts are saying the deal could reach $100bn.

In other news, Japanese retail sales data showed highest increase since March 1997 as the consumer looked to make last-minute purchases ahead of the implementation of the sales tax hike from April 1st.

US pending homes sales are the only data release of FX market significance today. We then move to a week full of potentially high-risk events with the US bringing us the FOMC meeting, Q1 GDP and the US jobs report on Friday, along with the latest inflation data from Europe as Sterling looks to the Q1 GDP reading for direction.

 

EUR/USD

Supports 1.3800-1.3775-1.3730  | Resistance 1.3880-1.3900-1.3925

 

USD/JPY

Supports 102.00-101.70-101.20  | Resistance 102.50-102.80-103.00

 



GBP/USD

Supports 1.6800-1.6750-1.6720 | Resistance 1.6850-1.6900-1.6935

 

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