The U.S. Dollar continued to gain this morning as safe haven from the war and negative effects to come from Russian aggression.
Overview
At the time of writing, breaking news is reporting that the heavy attack on Ukrainian cities is approaching a humanitarian disaster.Steep sanctions from the European Union have been felt in Russia, where people are cashing out their bank accounts and the central bank has decided to raise interest rates to 20.0% in order to prevent the Russian Ruble from crashing even further. Commodity prices continue to rise as WTI Crude has now surpassed $100.0/barrel. Switzerland has surprised many nations by freezing Russian assets, a move that represents a step away from their common neutrality.Data-wise, we have Markit U.S. Manufacturing Purchasing Managers Index figures for February at 9:45 AM and Construction Spending for January at 10 AM. With the developments of the conflict clouding all other items, expect notes with breaking news and wild swings. Volatility is certainly high
What to Watch Today…
- No major economic events are scheduled for today
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EUR
The Euro fell to its weakest point since the end of January after a day that saw dramatic changes to the European Union’s stance and attitude towards Russian aggression. Energy use and costs at high risk mean there will be turbulence in the continent and banking sanctions ultimately affect the entire financial system.
Additionally, facing a micro-chip shortage, automobile manufacturing will also have to cope with the lack of supplies of nickel and other raw materials that come from the Russia-Ukraine mining regions. Interdependence is now something the EU is trying to get away from when it comes to the aggressor from the East. It will all mean economic headaches ahead and perhaps the end of speculation to any interest rate hikes for the year.
CAD
The Canadian Dollar is losing ground but remains trading around its best levels in over two weeks. Gross Domestic Product for December came in at 0.0% as expected, but quarterly annualized came in higher than expected 6.7% vs. 6.5%. The Bank of Canada will be meeting tomorrow and is not expected to raise interest rates from their current level of 0.25%.
Any hawkishness or dovishness on their part could make an impact along with developments.
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