NASDAQ 100 SELL-OFF INTENSIFIES AMID UKRAINE CRISIS

American equities declined sharply in the overnight session as investors continued to focus on the ongoing crisis in Ukraine. On Thursday morning, Russia’s president announced that he was launching an attack on Ukraine. By the end of the day, several Ukrainian military bases were hit and over 40 people killed. In a statement, Joe Biden blamed Putin for the crisis and imposed severe sanctions that targeted key officials and exports to the country. The Dow Jones, Nasdaq 100, and S&P 500 indices declined by more than 1%.

The US dollar strengthened against other currencies as investors rushed to its safety. The currency also reacted to the latest American GDP and initial jobless claims data. According to the statistics agency, the American economy expanded by 7.0% in Q4, which was in line with expectations. The GDP price index rose by 7.2%. Additional data showed that the country’s initial jobless claims dropped to 232k last week after they rose by 249k in the previous month. Meanwhile, new home sales rose by 801k in January. The biggest concern for the US economy is that rising oil prices are affecting the GDP. According to Goldman Sachs, a $10 increase of oil prices was taking about 10 basis points from the economy.

Focus among investors will remain on the ongoing crisis in Europe. There will be other key events in the economic calendar. For example, Germany, the biggest economy in Europe, will publish the latest GDP numbers for the fourth quarter. The European Commission will also publish the latest business and consumer confidence data. The most important data will be the American personal consumer expenditure data, which is the Fed’s most important inflation figure.

EURUSD

The EURUSD pair dropped sharply as demand for the US dollar rose. The pair is trading at 1.1150, which is substantially lower than this week’s high of 1.1392. On the daily chart, the MACD moved below the neutral level for the first time in weeks. The pair also moved below the 25-day and 50-day moving averages. It also moved below the year-to-date low of 1.1115. Therefore, the pair will likely keep falling as bears target the next key support at 1.11050.

XBRUSD

The XBRUSD pair crossed the 101 resistance level for the first time in more than 8 years. The pair managed to move above the upper side of the ascending channel that is shown in purple. It also remains above the short and long term moving averages. Oscillators like the Relative Strength Index and the MACD have also tilted upwards. Therefore, the pair will likely keep rising in the coming weeks.

XAUUSD

The XAUUSD pair jumped sharply as demand for safe havens rose. It rose to a high of 1,972, which was the highest level since 2020. On the daily chart, the pair moved above the short and long term moving averages. It also managed to cross several resistance levels like the YTD high of 1,877. The pair will likely keep rising today.