Market volatility remains elevated as the situation with Russia is fluid.
Overview
The greenback rallied aggressively yesterday after Russia invaded Ukraine. However, the U.S. dollar is giving back some of those gains in just minutes this morning on reports that Russian President Vladimir Putin is ready to send a delegation to Minsk, Belarus for Ukraine talks. The headline sent the Dollar Index 0.2% lower and has allowed equity futures to turn positive. Of course, the market reaction is far less important than the human cost and struggle in the region. Perspective is important.Domestically, there is plenty of data to chew on. U.S. Durable Goods impressed, rising 1.6% and beating expectations by a full percentage point. A separate report showed personal income rose 2.1% month over month in January, also besting estimates. Personal income registered flat. Later, pending home sales and the University of Michigan sentiment will cross the wire.
What to Watch Today…
- Pending home sales and U. of Michigan at 10 a.m.
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EUR
The Euro rocketed off its overnight lows against the greenback in early trading. EUR/USD jumped half a percent in the blink of an eye on reports that Russia may be open to talks with Ukraine. Details are scarce but risk sentiment is showing a strong reaction to the possibility of de-escalation and the Euro is enjoying a boost. European Central Bank President Christine Lagarde is set to speak at 9 a.m. but her comments will likely take a backseat to geopolitical headlines.
CAD
The Canadian dollar fell 0.7%, the biggest move in three weeks. The U.S. dollar has gained favor as a safe haven so the loonie is under pressure even as the price of oil spikes. WTI crude futures jumped 7.3%.The Canadian dollar was among the G10 currencies gaining quickly against the U.S. dollar early this morning.
The loonie has gained half a percent in the last hour even as oil futures pared their overnight gains. There is no major economic data set for release in Canada today. Canada Wholesale sales rose 3.9% month over month in January, but the print will mostly be overlooked.
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