DAX, CAC 40, STOXX SOAR ON EU STIMULUS HOPES

European stocks jumped sharply on Wednesday as investors anticipated a stimulus package as the crisis in Ukraine escalated. The Stoxx 50 index rose by more than 3.5% while the German DAX rose by over 5%. Similarly, the CAC 40 index jumped by over 4%. EU leaders will meet on Thursday and deliberate on key strategies to prevent the bloc from moving to a recession. There is also the expectation that the European Central Bank will delay its plan to withdraw emergency stimulus measures to counter financial shocks by the Covid-19 pandemic. European leaders will also deliberate on how to reduce their dependence on Russia’s energy sector.

Cryptocurrency prices jumped on Wednesday as a leaked executive order showed how Biden plans to regulate the industry. The order directs agencies to study cryptocurrencies and come up with recommendations on possible regulations. These coins have been in the spotlight lately as regulators worry about their use to go against sanctions. This week, Coinbase announced that it was blocking Russians while other exchanges like Kraken and Binance have rejected such measures.

American futures also rose on Wednesday as the market reacted to the ongoing fallout from the Russia invasion and sanctions. More companies announced that they will stop offering their services to the country. This includes companies like Coca-Cola, Pepsi, and McDonald’s. These are some of the biggest companies that have been for decades in Russia, even during the cold war. They joined other firms like Shell, BP, PwC, and Bain & Company to exit the country.

EURUSD

The EURUSD pair staged a recovery rally after falling to the lowest level in years. The pair is trading at 1.0955, which was higher than this week’s high of 1.0800. On the daily chart, the pair remains below the short and long-term moving averages while the MACD is below the neutral line. The Relative Strength Index (RSI) has moved slightly above the oversold level. Therefore, the pair will likely resume the bearish trend ahead of the US inflation data on Thursday.

XBRUSD

The XBRUSD pair declined slightly as the spectacular rally took a breather. The pair dropped to a low of 121.80, which was the lowest level since Monday. On the four-hour chart, the pair is slightly above the key support level at 118.20. It has also moved above the 25-day and 50-day moving averages while the Commodity Channel Index (CCI) and accumulation and distribution indicators have moved lower. Therefore, the pair will likely remain in this range today.

ETHUSD

The ETHUSD pair rose to a high of 2,745, which was the highest level since March 4th. On the four-hour chart, the price is along the upper side of the Bollinger Bands. It has also moved above the 25-day moving average while the MACD and the Relative Strength Index have moved higher. Therefore, the pair will likely keep rising in the near term.