Tensions between the West and Russia over the Ukraine continue. Investors move away from safe haven currencies as oil prices soar. Brent crude is closing in on $100/bbl while WTI is trading over 3% higher. The US dollar trades mixed against its peers weakening against a majority while strengthening against the JPY and CHF.
This week's economic data
Tuesday: US Markit Manufacturing
Wednesday: EU CPI
Thursday: US GDP, US Initial Jobless Claims
Friday: US Michigan Sentiment
February 22, 2022
EUR/USD 1.1342 GBP/USD 1.3549 USD/CAD 1.2730 AUD/USD 0.7215 USD/JPY 115.12 USD/CNH 6.3194 USD/ILS 3.2342 USD/MXN 20.3315 USD/CHF 0.9198 USD/INR 74.8750 USD/BRL 5.0688 USD/SGD 1.3455 USD/DKK 6.5583 USD/SEK 9.3349 USD/NOK 8.9030
The US dollar is trading mixed against its peers stronger than safe havens and lower against the others. Higher oil prices have put downward pressure on safe haven currencies. The Bloomberg dollar index is trading 0.1% lower.GBPGBP/USD trades below 1.3550 amidst market volatility surrounding tension between Russia and the Ukraine. Sterling remains under pressure following a statement from Bank of England Deputy Governor Dave Ramsden that the UK is likely to need “modest” tightening for interest rates.EUREarlier in the trading session, EUR/USD traded lower as traders moved towards risk-off trading due to escalating tensions between the West and Russia over Ukraine. EUR/USD has since rebounded as rush for safe havens eased.CADThe Canadian dollar is trading stronger as Brent oil prices trade up towards $100/bbl. WTI crude futures soared 3.1% reversing a two-day losing streak. USD/CAD is trading 0.2% lower.ASIA/PACIFICUSD/JPY is trading higher as 2-year Treasury yields in the US rise and oil prices trade stronger. AUD/USD hit 2-week high earlier in the session amidst broad USD weakness and following bets of an RBA rate hike.
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