Markets Optimistic Following Ukraine-Russia Update

Sentiment improved notably on Tuesday, following headlines indicating a de-escalation of Russian attacks around Kyiv and Chernihiv, as announced by Russia's mediator Vladimir Medinsky.

This week, US equity benchmarks surged above their respective 200-day moving averages, changing the medium-term trend back to bearish. However, some profit-taking could derail the rally heading into Friday's US labor market data update. 

Later today, ECB President Christine Lagarde will speak at an event hosted by the Bank of Cyprus. However, her speech might not influence the markets this time. 

Moreover, the US ADP employment report for March is due, expected to show 455,000 new jobs, slightly lower than 475,000 in February. Lastly, the Q1 US GDP revision will be released, but no changes are expected, and the economic growth should stay at 7.0%.

In the FX market, the EURUSD pair surged notably Tuesday, reacting to the news from Russia, sending the euro to March highs. The next key resistance is spotted at 1.12. The USDJPY pair has also retreated from its multi-year highs as the greenback appears overbought broadly, likely leading to a correction over the following days. 

Oil has managed to book gains, despite the "optimistic" war news, jumping from 100 USD to today's 106 USD. Precious metals also erased their yesterday's losses and traded somewhat higher today.