KBC Market Research Desk
KBC Bank
Headlines
Situation in eastern Ukraine complicates further
Trading with Central European currencies produced mixed results on Monday on the background of deteriorated situation in eastern Ukraine and threats of more US sanctions imposed on Russia due to reluctance of the latter to fulfil the recent Geneva agreement. John Kerry, the US Secretary of State, urged his Russian counterpart, Sergey Lavrov, to engage in diplomatic resolution of the crisis and to appeal publicly to pro-Moscow gunmen for leaving seized government buildings in several Ukrainian cities.
The zloty lost about 0.3 % against the euro yesterday and thereby gave up most of its gains posted after the Geneva deal had been reached last Thursday. Meanwhile, the Hungarian forint strengthened by about 0.3 % and settled below the EUR/HUF 307 level, raising probability of an additional 10 bps rate cut at the central bank’s meeting next Tuesday.
Today, the regional macroeconomic calendar is eventless again and hence ongoing conflict in Ukraine continues to be the eye-catcher. Nevertheless, recent sessions indicate that markets have already got used to certain level of uncertainty and sensitivity of regional assets to the Ukrainian turmoil has been declining: it is distinctly lower now than in was in the time of Russia’s annexation of the Crimean peninsula.
This non-exhaustive information is based on short-term forecasts for expected developments on the financial markets. KBC Bank cannot guarantee that these forecasts will materialize and cannot be held liable in any way for direct or consequential loss arising from any use of this document or its content. The document is not intended as personalized investment advice and does not constitute a recommendation to buy, sell or hold investments described herein. Although information has been obtained from and is based upon sources KBC believes to be reliable, KBC does not guarantee the accuracy of this information, which may be incomplete or condensed. All opinions and estimates constitute a KBC judgment as of the data of the report and are subject to change without notice.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.