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European Market Wrap: Oil Slides, FTSE Stalls as EUR/USD Eyes NFP’s

European Market Wrap: Oil Slides, FTSE Stalls as EUR/USD Eyes NFP’s

Tammy Da Costa, Analyst

EUR/USD, FTSE, Oil Talking Points:

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Crude Oil reacts to potential release from strategic reserves

Crude oil is once again at the forefront of headlines as the United States considers releasing an estimated one million barrels of oil per day from the Strategic Petroleum Reserve (SPR) over the next few months (with the maximum 180M barrels accounting for approximately one third of its reserves).

While this could alleviate price pressures in the short-term, further supply constraints and an extension of the conflict between Russia and Ukraine will likely support commodity prices for the foreseeable future.

Oil (WTI) Daily Chart

European Market Wrap: Oil Slides, FTSE Stalls as EUR/USD Eyes NFP’s

Chart prepared by Tammy Da Costa using TradingView

EUR/USD strength short-lived as investors eye NFP data

After rebounding from key psychological support at 1.080 earlier this month (7 March), US Dollar weakness supported EUR/USD, allowing it to find temporary relief above 1.10278 (the 76.4% Fibonacci level of the 2020 – 2021 move). As this level continues to hold as support for the immediate move, increased probability for the Fed to hike rates by 50bp in May and Europe’s vulnerability to the current conflict posses an additional catalyst for the major currency pair.

EUR/USD Daily Chart

European Market Wrap: Oil Slides, FTSE Stalls as EUR/USD Eyes NFP’s

Chart prepared by Tammy Da Costa using TradingView

As the US labor market continues to recover, a positive US NFP report will likely support the safe-haven greenback, supporting the Fed’s more hawkish stance.

European Market Wrap: Oil Slides, FTSE Stalls as EUR/USD Eyes NFP’s

Source: DailyFX economic calendar

FTSE, DAX take a back seat, European stocks stumble at resistance

Although European equities have recovered from the March lows, DAX and CAC are testing critical resistance while FTSE 100 aims to reclaim the 7,600 handle. For bullish continuation to prevail, bulls will need to clear this key level which has historically held both bulls and bears at bay.

FTSE 100 Daily Chart

European Market Wrap: Oil Slides, FTSE Stalls as EUR/USD Eyes NFP’s

Chart prepared by Tammy Da Costa using TradingView

--- Written by Tammy Da Costa, Analyst for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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