Ukraine rejects surrender demands over Mariupol as Biden confers with European leaders; US and European futures slip, following a jump in Oil.
March 21, 2022
GBP/USD 1.3151 GBP/EUR 1.1897 EUR/USD 1.1054 USD/CAD 1.2592 EUR/CHF 1.0289 EUR/SEK 10.4309 EUR/NOK 9.6614 EUR/DKK 7.4417 USD/ILS 3.2372 AUD/USD 0.7391 NZD/USD 0.6897 USD/SGD 1.3558 USD/JPY 119.23 USD/CNH 6.3685 USD/INR 76.1113 EUR/ILS 3.5782 GBP/ILS 4.2570 USD/ZAR 14.9492
Boris Johnson has announced a drive to expand the UK’s nuclear and wind energy production, meeting senior executives from these industries, to find alternative energy sources.
Rishi Sunak has promised to focus on helping Britons through the cost-of-living crisis ahead of his mini-budget on Wednesday. He maintained that the upcoming tax hike will go ahead.
GBPUSD trades down -0.1% and EURGBP trades up 0.18%.EUR
Expectations of an ECB rate hike in 2022 are realistic, following comments from council member Klass Knot. Some council members are beginning to back a rate increase prior to the end of net-asset purchases.
Germany has reached a deal to buy Qatari gas to sever its energy dependency on Russia. Energy remains top of the agenda for Brussels however, energy market intervention looks unlikely. Macron retains a large lead ahead of the French presidential elections and is a favourite in both rounds.
EURUSD trades flat intraday.USD
Biden will talk with major European leaders today to co-ordinate a joint response to the war in Ukraine. Further talks between Kyiv and Moscow are likely following small progress made by each side.
Some have warned that the Fed could break the US economy if it rose rates beyond 2.5%.
While market makers have warned of threats to the dollar’s supremacy, offering or finding a valid replacement would be challenging. The dollar continues to make up over 50% of global foreign exchange reserves.ASIA/PACIFIC
Chinese banks have left borrowing costs unchanged, with the PBOC expected to find other areas to ease fiscal policy. Hong Kong begins to see easing of its latest covid rates as it reels back mass testing and cuts travel bans. Worries increase about possible Chinese intervention against Taiwan.
Asian equities have wavered through the Asian session. The Nikkei closed up 0.65% however the Hang Seng, CSI, and ASX all closed lower.ILS
USDILS trades lowers at 3.237 down roughly 0.4%, as the pair slipped away from recent highs of 3.3 over last week.Data & Events
DE – Dec PPI
ECB’s Lagarde, Makhlouf and Nagel speak
FT’s Commodities summit
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