Cryptocurrencies rebound as investors embrace risk sentiment

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US stocks fell slightly on Monday as tensions in Russia mounted. The Dow Jones fell over 400 points while the S&P 500 fell over 20 points. The Nasdaq 100 index rose as the market advanced. Investors expect the global economy to face elevated risks as energy prices soar and supply chain issues persist. As a result, central banks are likely to take a more hawkish stance even if risks to global growth remain.

Cryptocurrencies rebounded as investors continued to buy the dips. Bitcoin broke above the $40,000 mark while Ethereum is above $2,800. In recent days, there have been regulatory discussions about these currencies. For example, in Europe, the head of the ECB has called on regulators to start tightening cryptocurrency regulations given ongoing sanctions. On Monday, several cryptocurrency exchanges like Binance announced that they would lock the accounts of sanctioned Russians from their platforms.

The economic calendar will have a number of important events today. Earlier, the Reserve Bank of Australia (RBA) issued its interest rate decision. He left interest rates unchanged and warned that inflation would remain at high levels for some time. Markit will publish the latest manufacturing PMI figures from around the world. Other key economic numbers to watch today will be the latest UK House Price Index data from the National and Canadian GDP data.

EUR/USD

The EURUSD pair tilted higher during the overnight session. It moved to 1.1220, slightly above Monday’s low at 1.1123. The pair also moved slightly above the 25-day moving average while the relative strength index tilted higher. The MACD also started to rise. Therefore, the pair will likely continue to rise as investors assess the risks posed by an ongoing war.

GBP/USD

GBPUSD rallied strongly after falling to a three-day low on Monday. It is trading at 1.3415, which is above this week’s low of 1.3312. It moved slightly above the 61.8% Fibonacci retracement level. It also moved towards the middle line of the Bollinger Bands while the Commodity Channel Index (CCI) moved higher. The pair will likely continue higher today.

GBPUSD

USD/USD

NZDUSD rose sharply as investors embraced risk sentiment. It hit a high of 0.6766, which was the highest level since Thursday last week. The pair managed to break above the 25-day moving average and the 61.8% Fibonacci retracement level. The RSI and MACD are also pointing up. Therefore, it is likely that the pair will continue higher later in the day.

NZDUSD

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