Anxiety Returns to Markets on Friday

Anxiety Returns to Markets on Friday
Equity indices slipped on Friday as inflation concerns, rising yields, and seemingly no new positive developments from Ukraine halted this week's rally.
Earlier in the week, headlines surrounding the Russia-Ukraine talks suggested that sides were moving closer to a peace agreement. On Thursday, however, Ukrainian and Russian officials noted no significant progress in negotiations. Oil moved 10% higher yesterday after the news, pushing the WTI benchmark above 105 USD.

Later today, Canadian retail sales data are due, along with a new housing price index in Canada, likely influencing the USDCAD pair. It has dropped back to the 200-day moving average at 1.26. Stronger than expected data could push the pair below that support. 

Moreover, US President Joe Biden and Chinese President Xi Jinping will hold a virtual meeting, and they are expected to discuss several issues, including trade and military activities. "The two leaders will discuss ways to responsibly manage the competition between the United States and the PRC, as well as ways to work together where our interests align," the White House said in a recently published statement.

Elsewhere, the GBPUSD pair traded below the important resistance of 1.32 as yesterday's BoE decision showed a dovish surprise. Nevertheless, the Bank of England will likely deliver several more rate increases this year. 

On the other hand, the USDJPY pair rose to levels last seen in February 2016, attacking the 119 threshold as the pair tracks US yields in their ascent. 
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