FX markets are volatile after Russia’s attack on the Ukraine. Euro-area currencies have weakened including the Swiss franc which is typically seen as a safe haven currency. The stock market in Russia lost $250bn in value following the country’s invasion. The central bank of Russia announced it will intervene in the FX market to curb volatility for the first time in years and will provide liquidity to banks by offering 1trn RUB in overnight repo market. US President Joe Biden is expected to announce further sanctions on the country later today.
February 24, 2022
EUR/USD 1.1150 GBP/USD 1.3345 USD/CAD 1.2832 AUD/USD 0.7144 USD/JPY 115.02 USD/CNH 6.3280 USD/ILS 3.2711 USD/MXN 20.6048 USD/CHF 0.9220 USD/INR 75.6537 USD/BRL 5.1337 USD/SGD 1.3574 USD/DKK 6.6743 USD/SEK 9.6253 USD/NOK 9.0612
Traders are moving to risk-off assets including the US dollar. The US Treasury curve is flattening while US equity futures are down.GBPSterling alongside other European currencies fell following Russia’s attack on the Ukraine as the region faces its biggest security risk since WWII. GBPUSD is trading down 1.33%.EUR
EURUSD is down over 1% on pace for its largest intraday decline since the beginning of the pandemic in 2020. With the euro area more exposed to potential fall-out from the Russian invasion, the EUR is under pressure as investors speculate that the ECB will be more hesitant to hike rates.CADUSDCAD is trading 0.7% higher amidst broad risk-off trading sentiment. The Canadian dollar is holding up better than other G10 currencies as higher oil prices could support CAD.ASIA/PACIFICThe Japanese yen rose to 3-week high following Russia’s attack. Japanese bonds also advanced as the demand for safe havens intensified.
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