Biden and Putin agree to summit in principle to discuss the Ukraine crisis, UK set to announce end to virus restrictions.
February 21, 2022
GBP/USD 1.3633 GBP/EUR 1.1999 EUR/USD 1.1362 USD/CAD 1.2729 EUR/CHF 1.0444 EUR/SEK 10.6330 EUR/NOK 10.1824 EUR/DKK 7.4397 USD/ILS 3.1950 AUD/USD 0.7215 NZD/USD 0.6725 USD/SGD 1.3454 USD/JPY 114.93 USD/CNH 6.3267 USD/INR 74.4263 EUR/ILS 3.6296 GBP/ILS 4.3559 USD/ZAR 15.1309
Boris Johnson is set to announce the end of all Covid-19 restrictions. The proposed measures include scaling down community testing and scraping the legal requirement to isolate following a positive test. Cases have fallen; however, the initial approach will be cautious with contingency plans in place.
The UK property market rose 2.3% between January and February, the largest jump since 2001.
The FTSE100 trades up 0.6% intraday, and the pounds trades up 0.32% against the dollar.EUR
Emmanuel Macron has brokered a summit between Biden and Putin in what might be a key victory for his election campaign.
French Manufacturing and Services PMI beat forecasts, rising to 57.6 and 57.9 respectively. January producer prices for Germany rose 25% YoY, highlighting the impact of cost-push inflation on the eurozone economy.
The STOXX and DAX trade up 0.67% and 1% respectively as we print, following signs of reproachment between the US and Russia. EURUSD trades 0.51% higher intraday.USD
Joe Biden has agreed to meet Putin on the condition that Russia doesn’t invade Ukraine, in a deal brokered by French President Macron. Talks will also begin today aiming to reintroduce a ceasefire to the Donbas region. The US has prepared financial sanctions which will be implemented should Russia encroach Ukrainian sovereignty.
Recent reports show that some anticipate 9 consecutive rate hikes by the Fed, concluding that inflation may have higher momentum than previously thought. This would shift central bank policy to promote slow growth. Current market expectation is priced at 6 annual hikes.
The DXY pushes lower by -0.3% intraday, whilst US equity markets will remain closed today for Presidents Day.ASIA/PACIFIC
South Korean exports gained 13.3% YoY in February. Japan’s services PMI fell to 42.7, its lowest reading since May 2020. Thailand’s economy grew 1.9% in Q4 2021, faster than expected.
Asian markets struggled today with the Nikkei and Hang Seng losing -0.8% and -0.65% respectively. The ASX saw small growth finishing up 0.16%.ILS
Israel is expected to hold its key rate at a record low of 0.1%, despite some anticipating a more hawkish outlook from the BOI following inflation figures exceeding 3%.
USDILS is currently trading down -0.5% as investment moves away from the safe-haven dollar due to the ease in NATO-Russian tensions.Data & Events
Ceasefire talks for the Donbas region of Ukraine.
UK/EU discuss post-Brexit trade rules.
UK/Euro Area/French Germany – Markit PMIs
Israel - Feb. Base rate
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