Ukraine news continues to drive financial markets. News that Russian and Ukrainian officials plan to meet again had little impact on oil prices, which soared to fresh highs over $120 a barrel. The dollar surged against European currencies. Most Asian stock markets are down between 2-3%, Europe’s fell 1% and the S&P 500 opened only down slightly from Friday’s close. Gold touched $2000 an oz. Traders await the ECB meeting on Thursday and the Fed’s meeting next week.
Economic data & events:
Monday: US consumer credit
Tuesday: EZ GDP
Wednesday: US Job Openings and Labor Turnover Survey (JOLTS)
Thursday: US CPI, Canada Capacity Utilization, Unemployment, Participation Rate
Friday: US University of Michigan Consumer Sentiment Survey, UK GDP, Industrial Production, Trade Balance
March 7, 2022
EUR/USD 1.0895 GBP/USD 1.3169 USD/CAD 1.2761 AUD/USD 0.7354 USD/JPY 115.28 USD/CNH 6.3190 USD/ILS 3.2767 USD/MXN 21.1224 USD/CHF 0.9252 USD/INR 76.9725 USD/BRL 5.0642 USD/SGD 1.3605 USD/DKK 6.83 USD/SEK 9.9474 USD/NOK 9.0478
The US dollar index soared to fresh 14-month highs on the back of continued uncertainty related to the Ukraine-Russian conflict. News that officials from the two countries will meet again has subsequently brought the dollar well down from its highs. The White House said that it is considering a ban on Russian oil imports, which helped drive oil prices to new highs over $120 a barrel.GBP
The UK pound declined since Friday’s close, but is off session lows on the back of UK housing prices rising at their fastest pace since 2007. The Bank of England has begun quantitative tightening today, as $37 billion of bonds has fallen off its balance sheet. Traders await a slew of UK economic data to be released March 11.EUR
The euro dropped to near $1.08 amid geopolitical, economic and inflationary pressures related to the Ukraine-Russian conflict. Traders await the ECB meeting on Thursday, although no change is expected in its benchmark rates.CAD
The Canadian dollar is one of few currencies that has gained on the dollar overnight. Earlier gains due to soaring oil prices and news of a possible US ban on Russian oil were scaled back as US markets opened. Traders await Canada jobs data on Friday.ASIA/PACIFIC
The Australian and New Zealand dollars are top performing currencies due to the surge in commodity prices.The Chinese yuan is higher on the day following news that Russia may make payments to foreign creditors in the Chinese yuan, as ruble payments may not recognized or allowed to be wired via SWIFT.
This article is intended for U.S. audiences only.
©2022 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.