Ukraine crisis remains in focus for fx markets as traders await US retail sales data
City Index March 13, 2014 1:58 PM
<p>The on-going trouble between Ukraine and Russia remains the main issue pushing the FX markets around this week. It still does not look like any […]</p>
The on-going trouble between Ukraine and Russia remains the main issue pushing the FX markets around this week. It still does not look like any resolution is close, with a vote set for this weekend about whether the people of Crimea want to join Russia or stay as the Ukraine. This action is not, however, to be recognised by the United Nations and breaks international law. With this the EU are moving towards sanctions against Russia, so updates on this story are vital as it has caused safe haven trade with metals and JPY gaining.
The other big story is the Chinese slowdown, along with weak industrial production and retail sales data released last night. This also benefits the JPY and CHF as it plays to the safe haven trade.
Today EUR and GBP have rallied strong in the face of normal risk off data due to Ukraine and China, but a good jobs figure out of Australia last night and New Zealand being the first developed nation to raise rates has helped a risk on sentiment.
Today we finally have some data to look forward to in the form of US retails sales, which is due to come in better than expected, and slightly weaker unemployment claims. If data starts to improve from the US we may see a stop to the current climb in risk currencies.
Supports 1.3900 1.3830 1.3750 | Resistance 1.3980 1.4000 1.4030
Supports 102.45 102.20 101.20 | Resistance 102.90 103.25 103.75
Supports 1.6605 1.6580 1.6540 | Resistance 1.6680 1.6720 1.6780