The US are scrambling for alternatives, as it seeks to put a halt to Russian oil supply. A third round of talks between Ukraine and Russia are expected today.
March 7, 2022
GBP/USD 1.3170 GBP/EUR 1.2125 EUR/USD 1.086 USD/CAD 1.2709 EUR/CHF 1.00414 EUR/SEK 10.8409 EUR/NOK 9.7638 EUR/DKK 7.4391 USD/ILS 3.2886 AUD/USD 0.7402 NZD/USD 0.6879 USD/SGD 1.3642 USD/JPY 115.06 USD/CNH 6.3227 USD/INR 76.95 EUR/ILS 3.5717 GBP/ILS 4.3273 USD/ZAR 15.4006
GBPThe FTSE follows global assets declining 2.28% as we print.
Cable continues to be hit by the increased demand for USD, with GBPUSD falling below the 1.32 level during Asia trading and remains under pressure. GBPUSD has dipped 1.44% over the past week and sits in the 1.3175 region as we print.EUREuropean stocks open in the red as oil linked inflationary concerns hinder sentiment. The Euro Stoxx, CAC and DAX have dipped 414%, 4.32%and 4.41% respectively as we print.
The euro continues to hard hit by the USD demand and Ukraine-Russia conflict. EURUSD has fallen over 3% since the start of last week an trades below the 1.09 region as we print, a level not seen since May 2020.
EURGBP was also hit, falling over 1.5% over last weeks trading, to reach lows of 0.8202 before recovering slightly. EURGBP trades at its lowest rate since June 2016.USDThe US are scrambling for alternatives, as it seeks to put a halt to Russian oil supply and stop soaring prices. Talks have begun with Venezuela and Saudi Arabia over an increase in supply.
The final CPI print before next weeks Fed decision will come on Thursday. Consensus sees inflation rising 7.9%, the largest YoY rise since 1982.
The dollar continues on its upward trajectory as investors continue to switch to the safe haven - USD rallied 2.40% last week.ASIA/PACIFICThe US administration may become the First Nation to ban Russian oil imports, at least initially, as Japan and Europe are also in talks about a possible embargo - news on this caused an 18% jump in Brent to $139, before gains narrowed. Some market participants are betting that oil futures will rise above $200 before the end of March.
Asian stocks tumbled whilst haven assets rallied as new inflationary fear raise concerns. The Nikkei, Hang Seng and CSI dipped 2.94%, 3.87% and 3.19% respectively.ILSUSDILS continued to rally, with USDILS reaching 3.2900 at the time of printing.Data & EventsEurozone - investor confidence
UK - BOE Cunliffe speaksRussia/UkraineCorporate action has continued against the state with Netflix shutting down all services, whilst Tiktok is suspending live streaming. PwC and KPMG are exiting the region whilst local banks are looking to issue cards in the domestic payment system as Visa, Mastercard and Amex halt operations in Russia.
It is reported over 1.5 million people have fled Ukraine since the war begun.
There are reports that 4,500 anti-war protestors were arrested in Russia yesterday.
A third round of talks are expected to commence today, however hopes for progress remain low as Putin reiterated the war will continue until Ukraine accepts his demands and halts resistance.
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