Markets Trying to Stay Optimistic
03 March 2022
Volatility continues to be elevated on Thursday as investors are trying to look past the military conflict in Ukraine with hopes of a fast resolution.
The military conflict in Ukraine could be improving after reports of Russian negotiators looking to discuss a ceasefire with Ukraine, triggering a relief rally in US and EU bourses. Delegations are expected to meet on Thursday, and the market mood remains cautiously optimistic.
The ECB monetary policy meeting accounts from its latest meeting will be published during the EU session, likely influencing the EURUSD pair.
From other news, in his first day of testimony on Wednesday, Jerome Powell confirmed the central bank is ready to hike rates in March, despite the turmoil in the markets. Later today, he will testify on the Semi-Annual Monetary Policy Report before the Senate Banking Committee in Washington DC.
Additionally, US factory orders will be released, along with unit labor costs. Also, the usual Thursday's jobless claims are on the agenda.
Lastly, the ISM services PMI for February is due, expected to improve slightly to 61., up from 59.9 in January. The prices paid (inflation) subindex will likely move higher to 83.0. The employment and new orders gauges are also seen improving.
Meanwhile, oil spikes higher, reaching 115 USD a barrel, the highest since 2008.