WIKIFX REPORT: Risk-aversion gains momentum ahead of key catalysts

As the measure of how traders and investors view the outlook for the market and larger economy keeps getting worse as recession fears grow stronger. Forex traders can use technical sentiment indicators to help identify entry and exit points for currency pair trades. Also weighing on the risk appetite is the anxiety ahead of this week‘s important data/events, namely the ECB and the US CPI. Furthermore, headlines from Ukraine contrast with China’s optimism and keep the mood sour.

However, US dollar reverses the previous days pullback while yields regain 3.0% to stay firmer around a three-week high flashed earlier in the week. Price gold bears the burden of a firmer greenback but Brent oil stays up for the second consecutive day.

While USDJPY refreshes a 20-year high during a four-day uptrend while Antipodeans remain pressured. Further, USD/INR also stay mildly bid inside a familiar trading range even as the RBI announced a rate hike.

BTCUSD and ETHUSD extend Tuesdays losses amid a risk-aversion wave, reversing corrective pullback after the introduction of the Federal Cryptocurrency Bill.

Following is the list of major assets latest performances:

• Brent oil remains mildly bid around $121.00, up for the second consecutive day.

• Gold stays pressured around $1,850.

• USD Index reverses yesterdays pullback from two-week high, up 0.26% near 102.70 at the latest.

• FTSE 100 drops half a percent but EUROSTOXX50 and DAX are down around 0.25% and 0.10% respectively.

• Nasdaq and S&P 500 both added nearly 1.0% gains whereas Dow Jones rose 0.80% on Tuesday.

• BTCUSD and ETHUSD drop around 1.7% and 0.30% while taking offers near $30,600 and $1,800 by the press time.