A focus on the escalation of sanctions against Russia is weighing on broader market sentiment, providing for an outperfor-mance in JPY and a softening in equity futures alongside a decline in the US 10Y yield toward 2.50% — at the lower end of its two month range. EURJPY has fallen to a new multi-month low (top chart), underscoring the broader impact of geopolitical developments, and the DXY dollar index is consolidating just below Wednesday’s one month high. US re-leases through the NA session will include housing starts, building per-mits, jobless claims, the Philly Fed index, and a speech from St. Louis Fed President Bullard (non-voting hawk), whose recent comments have highlighted the considerable progress toward the Fed’s employment and price stability objectives.
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