USD, Oil and Gas gain on Russia/Ukraine tensions [Video]

Ipek Ozkardeskaya Swissquote Bank Ltd

Moodiness due to a lack of a strong post-earnings rally from Nvidia remained short-lived. The shares fell well short of the 8-10% rally that the market was prepared for, and posted a meagre 0.53% rise post earnings. Nvidia couldn’t offer the major US indices a fresh record, as Big Tech companies were mostly sold yesterday. Google lost 4.5% on Department of Justice’s demand to sell Chrome. But both the S&P500 and Nasdaq gained the day after the Nvidia earnings, and consolidate near ATH levels.

In the FX and commodities, the US dollar, oil and gas prices are extending rally amid the mounting geopolitical tensions in Ukraine. The US dollar’s recent rise pushed the EURUSD down the 1.05 cliff yesterday, and Cable extended losses below the 1.26 mark. Yet the solid appreciation of the US dollar, combined to rising energy prices, will likely ring the alarm bell among the European Central Bank (ECB) and the Bank of England (BoE) doves, and get them to tame their dovish expectations. The latter will probably support a recovery in both the euro and sterling once the geopolitical dusts settles. Current levels are more interesting for chasing dip buying opportunities than playing with the bears.

Author

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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