The dollar index hovered close to a 2-week high around 96 on Tuesday, amid concerns over a faster pace of Federal Reserve policy tightening and rising tensions in Ukraine. The Fed is set to conclude its two-day meeting on Wednesday, and although it is not expected to move rates, there has been rising expectations for the central bank to bring forward its tightening plans to tame persistently high inflation. Money markets are priced for a first rate hike in March, with three more quarter-point increases by year-end. Rising geopolitical risks also supported the safe-haven dollar, after NATO said it was putting forces on standby and reinforcing eastern Europe with more ships and fighter jets, in what Russia denounced as an escalation of tensions.
Sell off in US Markets are going on and NASDAQ has tested lowest level of recent months. The first resistance is 14.390 and first support level is 14.000 Level.
European stock futures were slightly higher on Tuesday, after falling to multi-month lows the day before in its worst session since late November. Investors try to shrug off worries regarding Fed's tightening and geopolitical tensions between the US and Russia over Ukraine but market volatility is set to continue during the day. On the corporate front, earnings from Ericsson topped estimates while Credit Suisse announced that its fourth-quarter earnings are set to be “negatively impacted” by increased litigation provisions. On the data front, the Germany Ifo business climate and the UK CBI optimist will be in the spotlight.
Escalation between Russia and West countries are increasing the volatility in German Market. First resistance to be tested will be 15.277 and first support is 15.069 Level.