14 Apr 2014
EMEA EM Express: Stocks and ruble fall on unrest in east Ukraine, threats of further sanctions against Russia
FXStreet (Łódź) - Tensions between Ukraine and Russia escalated over the weekend with pro- and anti-Russian demonstrators continuing clashes in the east part of Ukraine and Kiev threatening to conduct a "full-scale anti-terrorist operation" against people occupying government buildings if they refuse to leave by Monday morning.
The ultimatum hasn't been carried out however and more official buildings have been seized by pro-Russian protesters on Monday. Ukraine's interim president Olexander Turchynov once again called the developments a Russian “aggression” but at the same time suggested that he wasn't against a referendum on the future of the country and its shift from a republic to a federation
"We are not against holding a national referendum," the president said. "I am certain that a majority of Ukrainians will support an indivisible, independent, democratic and united Ukraine."
Furthermore, the UN Security Council held an emergency meeting on Sunday during which the US accused Russia of fomenting unrest in Ukraine and warned it could impose further sanctions on Russia.
On Monday also European Union foreign ministers, gathered in Luxembourg to discuss the Ukraine crisis, suggested that more sanctions against Moscow would be imposed. British Foreign Secretary William Hague said that Russia was continuing to destabilize the situation in Ukraine on purpose and that quick action was required to stop it. Polish Foreign Minister Radosław Sikorski urged other officials to expand the sanctions list as soon as possible.
"The EU has to make it clear to Russia what are the consequences of any possible future actions in eastern Ukraine," he said. "I expect a very specific signal when we can expect sanctions if Russia takes further steps."
But some of the EU officials, worried about the problems such a move could cause for gas transit, weren't eager to take such quick action and preferred to wait until more talks were held on Thursday in Geneva.
The Russian ruble fell to the lowest level in three weeks and stocks tumbled. The Micex Index registered its sharpest decline in a week, dropping by 1.7% to 1339.73.
Economic data
Israel's quarterly GDP data showed a pickup in growth to 3.2% in Q1, following a 1.8% rise the previous quarter, the Central bureau of statistics informed on Sunday. This result is more positive than the expected 3% increase.
Israeli CPI, released on Monday, climbed 1.3% on an annual basis in March, slightly up from the 1.2% rise registered the previous month. Month-on-month inflation increased 0.3%, compared with the 0.2% drop.
Year-on-year Polish M3 Money Supply, also published on Monday, rose 5.1% in March, up from 5.3% in February and above projections of 4.8% growth.
Technicals
The Russian ruble weakened 0.6% against the central bank’s target basket of dollars and euros to 42.1394 on Monday. USD/RUB grew by 0.74% to 35.8930.
On Friday the daily FXStreet Trend Index was slightly bearish, and the OB/OS Index neutral. RSI was at 49 at the last close and slid to 43 so far today. The Daily 2-StDev Volatility Bandwidth was shrinking at 3852 pips, with ATR (14) shrinking at 3587 pips. The 1D 200 SMA was at 33.5418, while the 1D 20 EMA was at 35.6723.
The ultimatum hasn't been carried out however and more official buildings have been seized by pro-Russian protesters on Monday. Ukraine's interim president Olexander Turchynov once again called the developments a Russian “aggression” but at the same time suggested that he wasn't against a referendum on the future of the country and its shift from a republic to a federation
"We are not against holding a national referendum," the president said. "I am certain that a majority of Ukrainians will support an indivisible, independent, democratic and united Ukraine."
Furthermore, the UN Security Council held an emergency meeting on Sunday during which the US accused Russia of fomenting unrest in Ukraine and warned it could impose further sanctions on Russia.
On Monday also European Union foreign ministers, gathered in Luxembourg to discuss the Ukraine crisis, suggested that more sanctions against Moscow would be imposed. British Foreign Secretary William Hague said that Russia was continuing to destabilize the situation in Ukraine on purpose and that quick action was required to stop it. Polish Foreign Minister Radosław Sikorski urged other officials to expand the sanctions list as soon as possible.
"The EU has to make it clear to Russia what are the consequences of any possible future actions in eastern Ukraine," he said. "I expect a very specific signal when we can expect sanctions if Russia takes further steps."
But some of the EU officials, worried about the problems such a move could cause for gas transit, weren't eager to take such quick action and preferred to wait until more talks were held on Thursday in Geneva.
The Russian ruble fell to the lowest level in three weeks and stocks tumbled. The Micex Index registered its sharpest decline in a week, dropping by 1.7% to 1339.73.
Economic data
Israel's quarterly GDP data showed a pickup in growth to 3.2% in Q1, following a 1.8% rise the previous quarter, the Central bureau of statistics informed on Sunday. This result is more positive than the expected 3% increase.
Israeli CPI, released on Monday, climbed 1.3% on an annual basis in March, slightly up from the 1.2% rise registered the previous month. Month-on-month inflation increased 0.3%, compared with the 0.2% drop.
Year-on-year Polish M3 Money Supply, also published on Monday, rose 5.1% in March, up from 5.3% in February and above projections of 4.8% growth.
Technicals
The Russian ruble weakened 0.6% against the central bank’s target basket of dollars and euros to 42.1394 on Monday. USD/RUB grew by 0.74% to 35.8930.
On Friday the daily FXStreet Trend Index was slightly bearish, and the OB/OS Index neutral. RSI was at 49 at the last close and slid to 43 so far today. The Daily 2-StDev Volatility Bandwidth was shrinking at 3852 pips, with ATR (14) shrinking at 3587 pips. The 1D 200 SMA was at 33.5418, while the 1D 20 EMA was at 35.6723.