Russian president Putin orders troops to return to their bases

  • orders troops engaged in military exercises to return to their bases

Out on Reuters quoting news agencies citing Kremlin spokesman

These are the troops that were on military exercise in western Russia and Ukranian borders.

EUR pairs higher on the news

EURUSD 1.3757 from 1.3730 EURCHF  1.2158 EURJPY 140.25

View? It looks to be a de-escalation of sorts by Russia but markets will remain cautious

Author: Mike Paterson

Mike Paterson has more than 30 years of experience trading FX including as a senior trader with UBS and Credit Suisse. He was also head of FX at the State Bank of Victoria. With sizeable daily trading volumes Mike carved out a name in the market combining professional integrity with a cynical grasp of seizing market opportunity. Since leaving the City, Mike has been working as an independent consultant and trading along with presenting seminars and writing for a number of publications. Mike lives in Kent and supports Southend United FC.

34 Comments

  1. Thanks for posting. I wondered why S&P futures just took off. I always look here for the quickest post of sudden news. What news outlets announce these things so quickly?

  2. Thanks to them for helping get out of my stale USDJPY longs.

  3. fastest out with message that i know thanks, i second johns question and thanks

  4. At a profit too. Strange how zerohedge is behind the game for this piece of news though.

  5. They’ve got Crimea, and the other bit is beginning to look rather expensive, so why not dial it back a hair?

  6. strange Derp? you doubting the speed of my early morning typing fingers ?? lol

  7. But they still have crimea right? and also they can still stop gas? would this be the turn around you think Mike? or a lot more to go? I think this is just a pause before things get worse.

  8. Spike out of no where. ..straight to FXL for the answer.

    Thanks Mike

  9. glad we could help explain at least

  10. It’s not 100% clear yet…I assume that this includes all Russian troops in Crimea, or is it talking about other troops along the border that were conducting military exercises?

  11. like i said in my post Jerry, markets will remain cautious. but there will be some position trimming for sure.would be rude not take some profit. that news came out in a relative twilight zone so let’s see what the main session makes of it.

  12. yw Andrew

  13. Smells fishy. the news wasn’t about the troops in Crimea.. gap fill for equities?

  14. Great opinion young Mikey. This is the valuable lesson I am learning. thanks again

  15. I’d say London takes us back to where we were before for a look, then power higher from there.

  16. I think this is slightly misinterpreted or was misperceived in the beginning as the military exercise ended yesterday (Western & Central).As Putin was there at the end to see it it’s not unusual he would give the order to return to base. (Even if they were to be redeployed soon they would most likely return (anyway) to respective bases & conduct maintenance and review the performance of themselves and kit from the exercise).
    It’s why militaries do large scale exercises to test & improve readiness & performance.

    This isn’t a withdrawal or drawn down of capability available in or to Crimea as far as I can ascertain.

  17. Job well done Mike. Thanks for the info.

  18. YW Kiayiami

  19. Impressive. Faster than google for whats going on. Cheers

  20. i would agree with you Xin but the Kremlin wouldn’t put this out if they didnt want to make some sort of impact/statement. Or double bluff ofc !

  21. yw. there’s no magic Jerry. all a case of priority.

  22. as i said in my post DM , it refers to those troops that were on military exercise in western Russia in Putin’s first show of strength last week/week-end

  23. @Mike no idea there’s so much information coming out all over the place at the moment – but either there was over reaction on this probably because of the words return to base or ‘ordered home’ or over reaction was already in the market. As this doesn’t affect Crimea / Ukraine present ground scenario at all. (eg No one is leaving there).

  24. yep, agreed Xin. that’s why i was keen to point out initially that it was those exercises that have been finished. it’s by no means the end of the conflict.

  25. I guess this just shows how much the market wants to be risk on only. It use to be nice and easy to trade because fundamentals matter. Now its like a flip of a coin.

  26. Gotcha Mike. Missed that at first. It’s way to late for me :)

    If troops stay in Crimea, it seems like a minor event overall. Guess that’s why gains in “riskier” currencies have paired back at the moment at least.

  27. Unfortunately, not everyone is reporting that the troops were not those in Crimea. Hence the short covering. Until we get more clarity, hard to see why London wouldn’t use the opportunity to trip more upside stops. Hence I’ve gone long AUDJPY on the dip back below 91 for a ride to 91.65. It’s a small position which I’ll be scaling into if I get better levels.

    0647 GMT [Dow Jones] The euro as well as several Asian currencies are markedly stronger in a knee jerk reaction to news headlines that Russian has ordered its troops deployed to Crimea to return to their bases. The seeming conciliatory move by Russian Prime Minister Vladimir Putin has greatly eased global tensions and investors are rushing back into risk-on positions, dumping the safe haven U.S. dollar in the process. The Singapore dollar, the Malaysian ringgit, the Philippine peso, the Indonesian rupiah and the Indian rupee have rallied to nearly their intraday highs. (ewen.chew@wsj.com)

    Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com

    (END) Dow Jones Newswires
    March 04, 2014 01:47 ET (06:47 GMT)
    Copyright (c) 2014 Dow Jones & Company, Inc.

  28. lol DM.. late for you . early for me !

  29. ‘Russian forces at Belbek air base fire warning shots in the air as Ukrainians march on checkpoint ‘

    http://www.breakingnews.com/topic/ukraine-protests-over-eu-agreement-delay/

  30. It could be part of the military strategy..caution boys

  31. I would not believe a word the Kremlin says. Someone needs to clean up that cess pit of corruption.

    As for EURUSD looks like the MM wants it above 1.38 by Thursday so it has further to drop when the squeeze hits.

  32. Military exercise uses blanks….return to base draw live rounds

  33. Thanks for post, great trader héhé !

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