Russian and Ukrainian delegates met in Istanbul for the first face-to-face talks after which Moscow state TV said Russia would move troops away from Kyiv calling the move a de-escalation. Ukraine has said its top priority is to negotiate a ceasefire with Russia although remains skeptical about their intentions. The dollar sank on the news as safe haven assets sold off. Most every currency pair rose vs. the US dollar.
"Don't worry when you are not recognized but strive to be worthy of recognition."
March 29, 2022
EUR/USD 1.1135 GBP/USD 1.3144 USD/CAD 1.2512 AUD/USD 0.7485 USD/JPY 122.63 USD/CNH 6.3740 USD/ILS 3.1988 USD/MXN 19.9464 USD/CHF 0.9320 USD/INR 75.9925 USD/BRL 4.7605 USD/SGD 1.3558 USD/DKK 6.6878 USD/SEK 9.2772 USD/NOK 8.6621
The dollar sank on hopes of a move toward de-escalation in the Russian/Ukrainian war. Gold and US Treasuries also sold off as investors see a return to global economic growth if energy prices stabilize and global supply chains improve – which may be possible if the war ends. Bets on aggressive US monetary tightening have continued to undermine shorter maturity treasuries, while Government bond yields climbed.GBP
The pound gained on the US dollar after Russia's announcement of de-escalation. However, the pound did not regain all of yesterday's losses and now trades just under 1.315. UK government bonds continue to march higher as the 10yr Gilt trades with the highest yield in six years.EUR
The euro surged higher on Russia’s claim of “de-escalation” and now trades at the highs for March. Long dormant euro bulls now see a catalyst to lift the Common Currency as the threat of the Russian/Ukraine war spreading diminishes.CAD
The Canadian dollar is hanging on to gains despite the price of oil falling 5% in morning trading. After oil traded between $110/bbl and $115/bbl all last week the price has dropped below $100 over the past two days. CAD over that period has remained at roughly the same 1.25 level despite high volatility throughout the trading day.ASIA/PACIFIC
The yen clawed back yesterday’s losses but is still trading around a six-year low when the BOJ intervened in the bond market. Japan’s jobless rate fell slightly to 2.7% in Feb, down from 2.8% in Jan.
Since twice hitting a low of 0.70 over the past four months, the Australian dollar is up 7% vs. the US dollar since the end of January. Aussie is flat this morning after the budget for Australia was released indicating a strong outlook for the economy, primarily aiming to boost prospects in upcoming elections.
This article is intended for U.S. audiences only.
©2023 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license.
The views expressed in this email are solely those of the author and do not reflect the views of SVB Financial Group, or Silicon Valley Bank, or any of its affiliates. This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decisions. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.
Foreign exchange transactions can be highly risky, and losses may occur in short periods of time if there is an adverse movement of exchange rates. Exchange rates can be highly volatile and are impacted by numerous economic, political and social factors, as well as supply and demand and governmental intervention, control and adjustments. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Before entering any foreign exchange transaction, you should obtain advice from your own tax, financial, legal, accounting and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources.