Geopolitical tensions still running the markets

<p>The FX markets are still locked in tight ranges, with geopolitical news the only major story keeping them there. World leaders start talks about how they […]</p>

The FX markets are still locked in tight ranges, with geopolitical news the only major story keeping them there. World leaders start talks about how they will enforce ceasefire between Ukraine and Russia, and also work towards ending the disturbing violence that has been seen in Gaza. More sanctions against Russia are the main play, but will this be enough to stop the violence?

The Aussie had the best move overnight, with comments from RBA’s Stevens saying he is ‘content right now’ with interest rates. He didn’t talk down the high AUD exchange rate, giving AUD/USD a brief lift up to 0.9394. The pair is still sitting under the strong resistance level at 0.9400. It may, however, make a move up today as fears are calming down from the risk off from geopolitical tensions.

The yen has started to give back some of the gains it made from the initial tension from the downed plane in Ukraine as it seems that Russia is now facing tougher sanctions. USD/JPY is trading around 101.50 and will be looking to get back above 102.00 in time if the current issues are resolved, now that world leaders are involved.

The US has the only worthwhile data today, starting with core CPI figures expected at 0.2%. This is a slight drop from the last time at 0.3%. This could help some of the risk pairs gain back to where they were last week, such as the euro and pound. Existing home sales data is due out as well from the US and is expected to come in at 4.98mn, an increase from last time at 4.89mn.



Supports 0.0.9369 0.9361 0.9349 | Resistance 0.9394 0.9402 0.9415



Supports 101.24 101.19 101.10 | Resistance 101.41 101.47 101.55



Supports 1.7060 1.7049 1.7031 | Resistance 1.7095 1.7106 1.7123

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.