The U.S. Dollar remains in mostly favorable ranges against its peers, with the exception of commodity-based currencies including the Oceanic “Aussie” and “Kiwi” as well as the South African Rand and Canadian Dollar.
Overview
The ongoing conflict between Russia and Ukraine has created a shock for energy suppliers and increased prices for all commodities across the board. WTI Crude oil climbed to its highest price since 2008 and the Bloomberg Commodity Spot Index is on its way to having its best weekly performance since 1960.As far as Russia’s economy is concerned, it keeps being punished by all kinds of bans and sanctions from all over the financial spectrum. Credit agencies have lowered their credit rating to “junk status” and even Morgan Stanley Capital International (MSCI) is taking Russian equities off of its emerging-market indices.In terms of domestic data, we will get the release of Markit US Composite Purchasing Managers Index at 9:45 AM while Factory Orders and Durable Goods Orders for January are out at 10 AM. Federal Reserve Chairman Jerome Powell will be continuing his testimony to the Senate and re-state that the Fed’s intent on hiking interest rates gradually is appropriate.
What to Watch Today…
- Durable Goods Orders 10 AM
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EUR
The Euro has been swinging within a 100-point range in recent days as the initial surprise of the Russian invasion of Ukraine has started to wear off. A more united EU, with an even friendlier United Kingdom, has spoken passionately about the need to defend N.A.T.O. interests and the quick steps that must be taken to get away from Russian interdependence.
For now, there is doubt about central bank action anytime soon. Data-wise the Markit Euro-zone Composite for February advanced very close to expectation, while the Producer Price Index revealed high inflationary levels at 5.2% for January vs. 2.8% expected. For the year, PPI climbed 30.6%.
CAD
The Canadian Dollar rose another half percent overnight benefitting from an interest rate hike by the Bank of Canada as well as the rise in commodity prices in global markets. Good factors have “Loonie” trading around its best levels since January 25th.
We shall see how much more room for growth there is for CAD as the BOC’s governor Tiff Macklem seemed very concerned about the quick pace of inflationary pressures, which could lead to perhaps moves of 50-basis points down the line.
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