Political Tensions Keep the Market Unstable

Fundamentals

Financial markets are responding to the growing political risks. This week, US Secretary of State Rex Tillerson is expected to visit Russia, with Syria being, of course, at the top of the agenda. It is entirely possible the US will impose more sanctions on Russia. In the light of these events, the Russian ruble and Russian stock market are under fairly heavy pressure. The situation also affects the USD, since Donald Trump's recent actions are somewhat different from his pre-election rhetoric.
In terms of fundamental news, traders are likely to monitor the UK CPI today. The index is expected to decline to 0.3%.
At 2 PM GMT, the JOLTS job openings report is being released. The number of vacancies is expected to rise by 30,000 to 5.655M.
Among monetary officials, FOMC's Neel Kashkari's speech may be of interest.

Stocks

No fundamental reports that could influence stock prices are released today, just as yesterday.
The NASDAQ is currently flat, just like the Dow Jones. Technically, the DJIA has formed an inverted bearish flag on the daily charts, which could signal a downtrend. Technically, the benchmark has formed a rounded top, which could further pressure the bulls. Meanwhile the NASDAQ-100 has continued rising, trading above the 9-day EMA. Traders are quite likely to hold their long positions.
Unable to withstand the foreign political risks, the Russian market fell yesterday at the opening. Today, it may try to win back some of its losses. Meanwhile, if the MICEX Index continues trading below 2,000, it may form a double top with a target at 1,930.

Currency Market

This week, the Bank of Canada is deciding on the key interest rate, which is expected to remain unchanged.
As we noted, the AUD/CAD pair continued to decline. Technically, the Aussie broke through the lower Bollinger Band on the daily charts. In the short term, a price correction may be imminent. However, the pair may still test the support at 0.9990, which is a 50% Fibo retracement.
The CAD/JPY pair is trading near the resistance at 83.75 on the daily charts. This may encourage the bears to increase their positions. The downtrend target may be at 82 or 82.14 yen per Canadian dollar. If the resistance is broken through, the price may head towards 80.50, which will signal a trend reversal.
As noted before, the CAD/CHF pair keeps rising. Currently, the pair is testing the resistance, although it may go even higher toward a resistance at 0.7600.

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