Russia formally recognizes separatist republics, ordering Russia troops into Ukraine as part of a ‘peacekeeping’ operation, as the West scrambles to take punitive measures.
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FX Rates
February 22, 2022Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.
Source: BloombergGBP/USD 1.3576 GBP/EUR 1.2016 EUR/USD 1.1298 USD/CAD 1.2764 EUR/CHF 1.0345 EUR/SEK 10.6981 EUR/NOK 10.1883 EUR/DKK 7.4403 USD/ILS 3.2322 AUD/USD 0.7196 NZD/USD 0.6709 USD/SGD 1.3484 USD/JPY 114.65 USD/CNH 6.3395 USD/INR 74.9563 EUR/ILS 3.6517 GBP/ILS 4.3879 USD/ZAR 15.2136
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GBP
Boris Johnson has announced the ending of all remaining Covid restrictions, with the aim to cut pandemic spending, as the UK moves into an endemic phase. The PM did stress caution that this does not mean that the pandemic is over, and new variants could pose a threat to public health.
The UK will announce its Russian sanction package soon, following critical comments from Foreign Secretary Liz Truss.
The FTSE trades down -1.19% on the day, and sterling trades down -0.18% against the dollar and up 0.25% against the Euro as we print.
EUREmmanuel Macron continues to play peacemaker, however despite news of a potential French-brokered summit, tensions escalated following Russian intervention yesterday evening. EU leaders are meeting today for an emergency council to determine Russian sanctions.
A board of independent advisors have advised that the German government should break away from its tendency to issue short-term bonds, to improve financial stability. An ECB governing council member has commented that the ECB must take time to decide on the correct interest rate strategy as euro-area inflation is higher and more persistent than expected.
European equities are down on the day following a spike in Ukraine-Russian tensions. The STOXX and DAX are lower by -1.61% and -1.8% respectively.
USDRussian recognition of two separatist republics in the Donbas region has escalated European tensions. The US has declared the act a ‘clear attack’ on Ukrainian sovereignty. Meanwhile, the Ukrainian president Zelensky has stated that Putin has effectively legalized troops who have already been combatants in the region.
The invasion comes following a rambling national address from Putin, in which references are made to Ukraine as a ‘Bolshevik’ creation, that former soviet republics reneged on their commitments to repay soviet debt. Eyes will be on western leaders today to see what punitive measures are taken in response to the Russian incursion.
US Markets were closed yesterday for President’s Day, NASDAQ futures are down -2.4% following the risk on market, the DXY is up 0.2%
ASIA/PACIFICThe PBOC urged commercial banks to accelerate real estate lending, in efforts to correct a home-market slowdown, which is spreading throughout China. The PBOC also injected 90 billion yuan into the economy following the sale of reverse repurchase agreements.
Japan’s services PPI rose 1.2% YoY picking up marginally from December. The BOJ is likely to let yields on long-maturity bonds keep climbing as long as they remain in their desired range.
The Nikkei and Hang Seng closed lower by -1.71% and -2.69% in the Asian session. Furthermore, the CSI closed down -1.3% and Australian markets performed marginally better following the opening of borders, closing down only -1%.
ILSIsrael has said it found no evidence that police illicitly targeted civilians with NSO spyware, contradicting widespread media reports that the Pegasus tool had been used against public officials. The Bank of Israel has left interest rates unchanged following yesterday’s meeting, however, did signal that they see rates gradually rising over the next few months.
USDILS is priced up 0.35% intraday around 3.23.
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