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Russian-Ukrainian conflict exacerbates eurozone financial risks The latest financial stability assessment report released by the European Central Bank on the 25th pointed out that because of the rising energy and commodity prices caused by the conflict between Russia and Ukraine, the risk of high inflation in the euro area has increased, and the financial stability of the euro area has deteriorated. The report believes that market vulnerabilities may increase. Energy and commodity prices have been volatile at high levels, putting pressure on derivatives markets for related products. Some financial assets are at risk of a further correction if growth prospects in the euro area weaken further or inflation rises significantly higher than expected.

USD/JPY OUTLOOK: Investors should try shorting after the pair pulls back to the 50 SMA at 127.38, looking for a dip to Tuesday's low of 126.48, followed by round-off support at 125.00. On the upside, if USD/JPY breaks out of last Thursday's high of 128.95, USD bulls could regain strength, which would push the pair closer to the May 17 high of 129.78. If USD/JPY breaks this level, it will retake the multi-year high of 131.28.

USD/CHFOUTLOOK: The Swiss franc has not broken above the 50% Fibonacci level of the March-May rally around 0.9630, and the bearish MACD indicator poses a challenge to the bulls. Also keeping bears looking forward to the reversal of support from March 31 near 0.9665 and 0.9700, respectively, is that the resistance and monthly horizontal areas are maintained. Meanwhile, a pullback in the pair would point to the 50-day SMA at 0.9565, followed by the 61.8% Fibonacci level at 0.9525. If USD/CHF breaks below 0.9525, bears will test the 0.9500 mark aggressively, while pointing to April swing lows around 0.9455.

ACTIVE TRADE: ON GBP/USD Differences in central bank policy expectations may continue to prevent GBP/USD from breaking the 1.2600 level. Indeed, the pair's near-term bullish trend appears to be at risk of being broken, which could open the prospect of a dip towards the 21-day moving average near 1.2425. A break below this level would open the door for a return to earlier monthly lows below 1.2200. It’s important to note that politics is also a potential headwind for the pound at the moment; Prime Minister Boris Johnson remains under pressure to resign, and senior British official Sue Gray is expected to release a report on “party gate” later in the day. Meanwhile, tensions between the UK and the EU over the Northern Ireland Agreement (NIP) continue to simmer.

Order Details: Symbol: GBP/USD Order Type: SELL Open Price: 1.2583 Take Profit: NO Stop Loss: NO Lots of sizes: 0.4 Status: Running Trade in a LOSS of $0.8 sent