Markets are shockingly quiet considering building Ukraine risk aversion into the weekend; accordingly equities are soft, the US 10‐year is back down to 2.66%, gold has rallied and JPY is strong. The focus in the Asian and European session has been mainly on Russia, after S&P downgraded the long‐term sovereignto BBB‐/negative, on risk of a marked deterioration in external financing, and the central bank unexpectedly hiked interest rates by 50bpts to 7.5%. FX volatility for the advanced economies has dropped to new lows, not seen since 2007. The markets are complacent with risk.
Read the full report: FX Daily
Scotiabank