The US dollar weakened against its risk-sensitive peers following news out of the US of sanctions against Russia. The market is interpreting the sanctions to be limited in scope. In New Zealand, the central bank signaled that it will ramp up the pace of rate increases to curb inflation supporting the New Zealand dollar.
February 23, 2022
EUR/USD 1.1343 GBP/USD 1.3590 USD/CAD 1.2696 AUD/USD 0.7274 USD/JPY 115.08 USD/CNH 6.3085 USD/ILS 3.2176 USD/MXN 20.1996 USD/CHF 0.9178 USD/INR 74.5663 USD/BRL 5.0083 USD/SGD 1.3443 USD/DKK 6.5587 USD/SEK 9.3113 USD/NOK 8.8454
USDUS 10-year treasury yields are trading 3bps higher at 1.97%, while the Bloomberg dollar index is trading 0.2% lower. The US dollar is under pressure as risk tone improves.GBPSterling is trading slightly higher following statement from Bank of England’s Governor Andrew Bailey saying that moderate rate hikes are likely coming in months. GBP/USD is up more than 0.1%.EUREUR/USD trades within tight range, slightly gaining on broad USD weakness and risk sentiment. EUR/USD implied volatility fell as equities in Europe firm and oil prices ease.CAD
The Canadian dollar strengthened the most against the USD versus its G-10 peers. This move comes as markets digest sanctions on Russia from the West which spurred appetite for riskier assets.ASIA/PACIFICUSD/JPY is up less than 0.1% as the pair remains in tight range with a holiday in Japan. NZD/USD was up as much as 1% - the highest level since Jan 20 - on news out of the central bank signaling rate hikes are coming.
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