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Forex News March 12, 2022
#edgeforex #market #trading #forex #indices #nasdaq #us #dow #industrial #crypto #gas #prices #cryprocurrency #bitcoin nasdaq

US Indices

The major indices in the United States finish lower. This week’s indexes have fallen four out of five days
- The NASDAQ index fell 2% on the day.
- The major indices are nearing session lows. The NASDAQ index was the hardest hit, losing more than 2%.
- The S&P’s 11 sectors are all down. Consumer discretionary declined by -2.0 percent. Communication dropped by 1.9 percent. The technology sector fell 1.8 percent.
- The Dow, S&P, and NASDAQ are all on track for weekly losses.
- Major indices fell on four of the five trading days this week (with one big up day saving the day)
- Major indices have fallen in six of the last seven trading days; the Dow has suffered its fifth weekly loss in a row.
All major indices surrendered earlier gains.
- The Dow gave up a 342 point gain, or a 1.03 percent gain.
- The S&P 500 index lost 32.3 points, or 0.76 percent.
- The NASDAQ index lost 109.39 points, or 0.83 percent.
The final figures are as follows:
- Dow industrial average fell -229.9 points, or 0.69 percent, to 32944 point to zero;
- S&P 500 index fell -55.19 points, or 1.3 percent, to 4204.32 point to zero.
- The NASDAQ index dropped -286.14 points, or 2.18 percent, to 12843.82; the Russell 2000 dropped -32 points, or 1.59 percent, to 1979.66.
- Dow industrial average fell -1.99 percent for the trading week • S&P index fell -2.87 percent
- The NASDAQ index was down 3.53 percent, while the Russell 2000 was down 1.01 percent.
Big losers today included:
- DiDi, -44.8%
- Nio, -9.51%
- Sofi, -9.14%
- Beyond Meat, -8.97%
- Celsius -8.92%
- Snowflake -8.81%
- Robinhood -8.55%
- Corsair -7.98%
- GameStop -7.1%
- Rivian Motors -7.56%
- GoodRx, -7.41%
- AMC -6.79%
- Alibaba, -6.69%
NASDAQ leads the way to the downside as the week comes to a close.

The major indices are losing ground in the final 15 or 20 minutes of trading:

Dow industrial average is down 150 points, or 0.45 percent, at 33027;

S&P is down 42 points, or 0.99 percent, at 4217.85; NASDAQ index is down 233 points, or 1.78 percent, at 12897; and

Russell 2000 is down 26.65 points, or 1.33 percent, at 1985.01.

The major indices have also fallen this week, with the NASDAQ falling -3.2 percent.

Gas prices
- Gas prices at the pump in the United States have risen to $4.33, up from $3.48 a month ago. It is a fraction of the price of a gallon of gas in other countries, but AAA reports that the price of a gallon of gas in the United States has risen to $4.33 today. This compares to $3.48 a month ago, a +24.4 percent increase.
- In comparison to a year ago, the price has risen from $2.82 to $4.33 today. This represents a 53.5 percent increase.
- As a result, the overall impact isn’t all that significant in terms of dollars and cents
- There are 3.78 liters in a gallon of gas. So $4.33 a gallon is equal to $1.14 per liter.
Crypto
- The United States will not permit the use of cryptocurrency to avoid paying taxes. The United States has stated unequivocally that cryptocurrencies will not be allowed to become a shadow business. Bitcoin increased by 8.8 percent on Wednesday, finishing the day at around $41.9K. The benchmark cryptocurrency appears to have had obvious issues with growth above $42K. On Thursday, we see a similar strong reversal move back to $39K. As a result, Bitcoin has lost 5.6 percent in 24 hours, Ethereum has lost 4.8 percent, and the top ten altcoins have lost anywhere from 1% (Terra) to 7.2 percent (Avalanche).
- The total capitalization of the crypto market fell by 4.5 percent over the day, to $1.75 trillion, according to CoinMarketCap. The Bitcoin Dominance Index fell from 43.0 to 42.7 percent.
- The Cryptocurrency Fear and Greed Index increased by 6 points to 28 and entered “fear” territory.
- The positive dynamics of stock indices aided Bitcoin’s growth momentum; however, on Thursday morning, the positive pull on them remained in contrast to the sell-off of cryptocurrencies.
- Bitcoin increased in value after a statement by Janet Yellen appeared on the website of the US Department of the Treasury, which did not include strict measures to control the cryptocurrency market. The statement was likely posted prematurely and quickly removed from the site.
- Later that day, US President Joe Biden signed the country’s first executive order regulating cryptocurrencies.
- The document only covered the broadest issues, such as consumer protection, financial stability, technological advancement, and the illegal use of cryptocurrencies. Individual federal departments will develop more specific measures for controlling the digital asset market.
- The United States has made it clear that it will not allow cryptocurrencies to become a shadow business and be used to avoid sanctions, taxes, and money laundering, among other things. It is more difficult to implement such control than it is with centrally issued fiat money.
March 12, 2022
Consequences on Europe’s economy if Putin shuts off the gas taps:

#edgeforex #market #trading #forex #europe #putin #russian #oil #gas #energy #generation #consumption #cryptocurrency #bitcoin gas

The United States announced earlier this week that it will prohibit all imports of Russian oil and gas, while the United Kingdom indicated that imports will be phased out by the end of the year. The European Union intends to cut Russian gas imports by two-thirds, but its plan is less drastic, owing in large part to the EU’s reliance on Russian energy.

Natural gas accounts for roughly a quarter of the eurozone’s energy generation, while Russia accounts for roughly one-third of the bloc’s imports. Any further disruptions in gas imports could have a significant impact on eurozone economic output and inflation.

After Russian Deputy Prime Minister Alexander Novak warned that Moscow could halt natural gas exports to Germany and the rest of Europe via the Nord Stream 1 pipeline, natural gas has re-entered the spotlight. Natural gas is one of several commodities caught in the crossfire of the Ukrainian conflict, and if Russia suspends exports, the European economy could suffer.

The war’s supply-side risks have stoked extreme volatility in global commodity markets, with oil, nickel, and wheat all surging alongside natural gas in recent weeks.

By mapping physical gas supply constraints and upward price pressures into GVA (gross value added) effects in the Eurozone and the United Kingdom, we estimate that high gas prices could reduce Eurozone GDP growth by 0.6pp (percentage points) and the United Kingdom’s GDP growth by 0.1pp relative to our baseline forecast in 2022 if no further gas supply disruptions occur.

Due to Germany’s reliance on Russian gas, the impact is likely to be even greater (-0.9pp). If Russia suspends all pipeline exports, Eurozone GDP growth could fall by 2.2pp in 2022 compared to our baseline forecast, with significant impacts in Germany (-3.4pp) and Italy (-3.4pp) (-2.6pp).

If gas prices rise further as a result of the Russian gas pipeline shutdown, our headline inflation forecast could rise by up to 1.3 percentage points, with a significant pass-through into core prices. Expect a range of 22 percent to 90 percent for the October price cap in the United Kingdom under the three scenarios, indicating two-sided risk around our current assumption of 55 percent.”

The United Kingdom’s energy price cap will be reviewed in October by the country’s regulator. The prospect of further spikes in energy prices has fueled fears of a “stagflation” period, in which the global economy is beset by high inflation alongside slow economic growth and high unemployment.

Given Russia’s reliance on exports to Europe and its ever-shrinking sources of revenue elsewhere, BCA Research strategists suggested in a note Wednesday that a complete shutdown was unlikely.

Despite the fact that Moscow signed a new agreement with Beijing last month to supply China’s CNPC with an additional 10 billion cubic metres of gas per year, the new pipeline to carry these supplies will take two to three years to build.

It is predicted that there will be no further supply disruptions beyond the flow reductions that have been in place since last September, another in which gas imports through Ukraine will cease for the rest of the year, and a third in which all Russian pipeline imports to Europe will be halted until 2022.

March 11, 2022
The pound plummets ahead of UK GDP data.

#edgeforex #trading #market #currency #forex #sterling #pound #dollar #downfall #plummets #uk #gdp #data #economy #cryptocurrency #bitcoin gdp

The GBP/USD pair has been on a steep downward trend in recent months as the US dollar’s strength has returned.

Following the release of strong American consumer inflation data, the GBP/USD fell to its lowest level since November 2020. It is currently trading at 1.3088, which is about 8% lower than its peak in 2021.

The economy is expected to have grown from 6.5 percent to 9.3 percent year on year. Strong GDP figures will provide an incentive for the Bank of England (BOE) to maintain its hawkish stance.

The pair’s decline continued on Thursday after the United States released strong consumer inflation data. According to the Bureau of Labor Statistics, American inflation rose to 7.9 percent in February as the cost of most goods increased.

Airline tickets, food, gasoline, and used cars were among the most popular items.

Excluding volatile food and energy prices, the core CPI increased from 5.8 percent in January to around 6% in February. As a result, analysts anticipate that the Federal Reserve will adopt a more hawkish tone next week, in line with the European Central Bank’s hawkish decision.

The GBP/USD pair will then react mildly to the most recent UK GDP data, which will be released on Friday morning. Economists anticipate that the UK economy increased by 0.2 percent in January after falling by 0.2 percent the previous month.

Analysts believe that this production performed well in January because the UK began reducing its Covid-19 restrictions this year.

In recent months, the GBP/USD pair has been under intense pressure. It dropped from a high of 1.4250 to a low of 1.3085. The pair has fallen below the 50-day and 25-day moving averages.

Most importantly, it has fallen below the key support level of 1.3175, which was the year’s low. As a result, the pair is likely to continue its bearish trend as bears target the next key support level at 1.300.

March 11, 2022
Forex News March 11, 2022
#edgeforex #trading #market #forex #currency #ethereum #stocks #russia #europe #energy #investment #cryptocurrency #bitcoin

Cryptocurrency:
- Bitcoin fell 5.4 percent on Thursday, ending the day near $39.6K, and fell another 1% in 24 hours to $38.9K on Friday morning. Ethereum has remained nearly unchanged (-0.3 percent) over the same time period, while other leading altcoins from the start are changing in different directions, ranging from a 1.6 percent increase (XRP) to a 1 percent decrease (BNB).
- The total market capitalization of the cryptocurrency market fell by 0.2 percent on the day to $1.74 trillion. Because of the greater stability of altcoins, the bitcoin dominance index continues to fall, falling from 42.7 percent yesterday to 42.4 percent today.
- Bitcoin has fully recovered from Wednesday’s loss, which was caused by the adoption of the first document on cryptocurrency regulation in the United States.
- The decline in stock indices and the rise of the dollar also hampered purchases of the first cryptocurrency, which frequently moves in tandem with the general demand for risks.
- Goldman Sachs, one of the world’s largest investment banks, is expanding its offering for trading digital assets. The bank is considering the launch of bilateral cryptocurrency options.
- World-famous investor and author Robert Kiyosaki has warned that the global economy is on the verge of hyperinflation and has advised investors to “stay away” from the stock market.
- Against the backdrop of a severe crisis in the Russian Federation’s financial system and restrictions on the circulation of the dollar and euro, the population’s demand for cryptocurrency has skyrocketed. It is now primarily used for international capital transfers or “hard” currency parking.
- Analysts believe that regulators will be unable to prevent such transactions effectively. However, the state is aided by cryptocurrency exchanges, which block Russians on their own initiative. There are still the possibilities of peer-to-peer platforms, or transfers between individuals. However, there are significant fraud risks associated with such transactions.
Europe

·Disagreements in Europe over cutting off Russian energy continue. As has been stated numerous times, such a move would be tantamount to Europe shooting itself in the foot.

·Slovenian Prime Minister Janez Jansa is the latest to declare that Europe is “strong enough to manage” the loss of Russian energy imports. He does, however, state that “not all colleagues agree.” Germany has been one of the most vocal opponents of such a move, and when that is the case, things are usually a no-go.

·Stocks hold higher for the time being. Eurostoxx +0.3 percent, Germany DAX +0.4 percent, France CAC 40 +0.4 percent, UK FTSE +0.7 percent & Spain IBEX +0.6 percent.
- This comes on the heels of a poor showing yesterday, which followed a blowout session on Wednesday. The drop yesterday could be attributed in part to the ECB hastening the tightening of policy. But, in general, there are some unresolved feelings about the war narrative that we have yet to resolve.
- US futures are also not indicating much so far today, with the S&P 500 futures currently flat.
- The market is attempting to gradually reduce Russia-Ukraine risks, but all it takes is one headline to reawaken investor fear.
Dollar
- The dollar is leading the way to begin the session. With USD/JPY currently within touching distance of 117.00, it appears to be putting a bid in the greenback across the board.
- The dollar is currently trading near the day’s highs against most major currencies, with EUR/USD easing from 1.1000 to just below 1.0970:
- The 100-hour moving average @ 1.0954 is still assisting in keeping the near-term bias more neutral, but it will be a key support level to keep an eye on.
- Meanwhile, the GBP/USD is falling further, with little to stop it from falling below 1.3000.
- Elsewhere, the dollar is up 0.4 percent against the Australian and New Zealand currencies. AUD/USD is currently down from 0.7355 to 0.7326, while NZD/USD is down from 0.6858 to 0.6835.
- There aren’t many headlines to work with this session, so it’s difficult to attribute this to anything other than dollar flows resulting from a rise in USD/JPY amid the potential technical break outlined earlier.
March 11, 2022
Is Dollar Nearing the End of Days

#edgeforex #trading #market #forex #history #dollar #usa #monetary #policy #end #gold #reserve #cryptocurrency #bitcoin dollar

As indicated by students of history, certain occasions should be remembered for a course of events of the dollar’s decay and fall. The reality of the situation will become obvious eventually whether the monetary framework’s weaponization at last annihilates the trust that supports the Federal Reserve Note and other government issued types of money. One sign that individuals are becoming mindful of the risks is phenomenal, record-breaking interest for actual metal.

The deceptive fiat The Federal Reserve Keep in mind that the “dollar” is slowly dying and will need to be replaced with something more dependable.

It could be sold to the American people as a series of dramatic monetary reforms. Perhaps people will use something entirely different as a form of payment.

In any case, the US dollar’s demise as the world’s reserve currency promises to be a watershed moment in the country’s history, and that moment may be approaching.

These incorporate Nixon’s “gold window” conclusion, the 1970s inflationary emergency, the beginning of the common buyer market in gold when the new century rolled over, the 2008 monetary emergency, and the rise of lopsided national bank strategy.

The recent events in Ukraine, as well as the unprecedented economic sanctions that followed, have prompted a new wave of investors to buy gold and silver bullion.

The largest wave of retail buyers in history is currently taking place. It’s safe to say that something extraordinary is happening. It all started with a perfect storm two years ago.

The implementation of COVID, with its attendant panic and lockdowns, a fiscal and monetary policy response that included printing trillions of dollars and dropping them from metaphorical helicopters, and a disputed presidential election were all events in America.

The purchasing of gold and silver is getting once more. This new rush can be credited, essentially to a limited extent, to expansion invading the American mind.

Canadian drivers might end up on the dollar’s Armageddon list. The reaction of Prime Minister Justin Trudeau to the driver fight acquainted a frightening new idea with a large part of the world: the electronic monetary framework can be utilized as a weapon against people in general spontaneously.

Trudeau declared a state of emergency and directed Canadian banks to place account freezes. Protesters and those who donated to them faced the prospect of being unable to purchase anything, including basic necessities, in the absence of a trial or due process.

The decision appears to have backfired. Making it clear to people around the world that their bank accounts can be frozen at any time, based solely on the whims of politicians, was not a move designed to instil trust in banks or the financial system as a whole.

Following the declaration that financial balances would be frozen, five of Canada’s biggest banks went disconnected for quite some time. Many presume Canadians were hurrying to pull out assets, in spite of the authority clarification that the blackout was brought about by “specialized” issues.

The emergency order was quickly lifted, and Canadian banks have been working to reassure customers about the security of their deposits.

Perhaps Trudeau and the rest of Canada’s leaders realised that destroying trust in banks wasn’t such a good idea.

PayPal’s service in Russia was recently discontinued. Visa, MasterCard, and American Express quickly followed. Millions of Russians are now discovering that the cards in their wallets can be turned off without notice or recourse.

Millions more people outside of Russia and Canada are aware that they could be next. All it takes is membership in the political opposition or citizenship in the wrong country, and they can put an end to your ability to function financially.

Numerous restless individuals are searching for choices. Actual gold and silver are among quick to show up. Valuable metals have been utilized as cash for millennia and could be again when there’s no other option. Moreover, coins, adjusts, and bars are non-cancelable.

March 10, 2022
The Turkish lira has dropped to its lowest level since December as a result of Ukraine concerns.

#edgeforex #trading #market #forex #lira #turkish #lowest #dropped #dollar #government #interventions #currency #cryptocurrency #bitcoin lowest

By 0844 GMT, the lira had fallen 1.3 percent to 14.6505 per dollar, its lowest level since Dec. 20, when the government announced a plan to protect lira deposits from currency depreciation.

The Turkish lira fell for the seventh day in a row on Wednesday, bringing its losses to more than 5% since Russia launched its attack on Ukraine, raising Turkey’s inflation and current account risks.

The lira is now down 10% since the end of 2021, a year in which it lost 44% of its value against the dollar.

Through costly interventions in the foreign exchange market and the lira protection scheme, authorities were able to keep the lira in a narrow band in the first two months of the year.

When volatility returned in late February as tensions between Moscow and Kyiv rose, the currency blew through 14 against the dollar before rebounding.

The currency crisis was precipitated by a central bank easing cycle in which the policy rate was reduced by 500 basis points to 14 percent since September.

The Treasury compensates for the difference between the interest rate on lira deposits and the currency’s depreciation on the maturity date under the lira protection scheme.

The burden on public finances necessitates additional indirect taxes or monetary expansion, which could result in an inflationary spiral. According to Turkish economists, the lira’s depreciation is already putting strain on public finances because the currency’s depreciation is greater than periodic yields, and the lira deposit scheme is becoming less sustainable.

The interest rate cuts are part of President Tayyip Erdogan’s new economic plan, which aims to turn Turkey’s chronic current account deficits into surpluses, boost growth, employment, and exports, and keep interest rates low.

However, the rise in commodity prices from oil to wheat as a result of Russia’s invasion of Ukraine is likely to increase the deficit while also stoking inflation, which is already at 54%.

The interest rate cuts are part of President Tayyip Erdogan’s new economic plan, which aims to turn Turkey’s chronic current account deficits into surpluses, boost growth, employment, and exports, and keep interest rates low.

However, the rise in commodity prices from oil to wheat as a result of Russia’s invasion of Ukraine is likely to increase the deficit while also stoking inflation, which is already at 54%.

Given Erdogan’s aversion to high borrowing costs, economists believe a rate hike is unlikely.

Given that keeping rates stable now means remaining behind the curve, there should be a change in (the central bank’s) strategy, but there has been no indication from authorities of a return to orthodox policies.

March 10, 2022
Forex News March 10, 2022
#edgeforex #trading #forex #market #russia #ukraine #talks #discussion #uk #europe #credit #loans #cryptocurrency #bitcoin

Russia-Ukraine

Russia
- High-level talks between Russia and Ukraine yield no results.
- Lavrov stated that a meeting between Putin and Zelensky was discussed and that the former would not turn down such an opportunity. Any such contact, however, would have to be substantive and specific. “I’m guessing that would mean Kyiv submitting to Moscow’s demands,” he added. Otherwise, I don’t see a meeting between the two at any point.”
- In any case, today’s meeting produced no significant results. There are no surprises here. As a result, the siege on Ukrainian cities will continue until further developments occur.
- The difference in tone and focus points following the meeting suggests that both sides are still far from seeing eye to eye on any peace or ceasefire. Lavrov also warns that the West is behaving “dangerously” by supplying weapons to Ukraine, posing a threat to the region that could last “many years.”
Ukraine

Ukraine has stated that they will not be able to end the war if the country that started it is unwilling to do so. After meeting with Lavrov, Kuleba takes a shot at Russia: “We are ready for diplomacy, but we are also ready to defend ourselves.”

Ukraine insisted that they are willing to continue discussions in this format It was difficult to listen to Lavrov during the meeting.

Regarding a possible ceasefire, Kuleba stated that “other decision-makers appear to be involved.” Without a doubt. If that is the case, talks will continue to fail, so is there anything else to take away from today’s meeting?

UK

The UK government imposes sanctions on seven Russian oligarchs worth an estimated £15 billion.

Roman Abramovich, owner of Chelsea, is on the list.

The UK government has announced new sanctions against seven Russian oligarchs, including the freezing of their assets and the imposition of a travel ban.

Europe

After a monster showing yesterday, European stocks are much calmer today as we settle in ahead of the ECB policy meeting.

In other news, S&P 500 futures are down 0.1 percent, Nasdaq futures are down 0.2 percent, and Dow futures are down 0.2 percent.

If anything, yesterday’s moves felt like a “release,” and now that the air pocket has been depleted, we’re back to trying to digest the headlines and make sense of what’s next in the Russia-Ukraine war.

Credit Suisse

Credit Suisse dismisses credit exposure risks to Russia.

The company has net credit exposure to Russia of CHF 848 million Earlier this week, Italy’s second-largest bank, UniCredit, stated that a full write-off of its Russian business would cost approximately €7.4 billion, while BNP Paribas stated that it had a total exposure to Russia and Ukraine of approximately €3 billion, which it claimed was “relatively limited.” According to reports, among European banks, Austria’s Raiffeisen Bank and France’s Societe Generale have the most Russian exposure. So, if nothing else, keep an eye out for those names first.
March 10, 2022

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