Markets are shedding risks as geopolitical tensions rise. Gold, JPY and CHF are all higher, the 10‐year US yield has dropped back to 2.6% and equities are notably weak, particularly across Europe. Out flows from Russia has helped to push RUB to five year lows and driven a 150bpts hike by the central bank (brining rates to 7%). This weekthe ECB, BoE, RBA, BoC all host meettngs followed by the release of an expected sub‐200, weather impacted non‐farm payrolls and a Chinese Lunar New Year impacted trade release. For FX markets this is likely to mean some addittonal near‐term volatility. Today, developments in Ukraine are likely to overshadow data releases; however the January PCE and ISM will be important updates.
Read the full report: FX Daily
Scotiabank