We bring you our regular Monday summary of economic events that came out over the past week.
Last week was mostly in the hands of central banks, which brought changes in current interest rates.
The Reserve Bank of New Zealand (RBNZ) was the first to come out with its changes on Wednesday, surprising markets by raising interest rates by 50 basis points, up from the expected 25 bp.
The RBNZ further noted that it would continue to focus on ensuring that the current high inflation does not become locked into longer-term expectations.
The minutes show that the Committee decided to continue tightening monetary conditions at a pace that would best maintain price stability and promote maximum sustainable employment.
The full minutes can be found here:
https://www.rbnz.govt.nz/news/2022/04/monetary-tightening-brought-forward
Later, the Bank of Canada (BOC) also published its monetary policy report and also raised its rate by 50bp to 1 % as expected.
The BOC noted that maturing Government of Canada bonds on the bank's balance sheet will no longer be replaced as of April 25.
With the economy entering a demand overhang and inflation remaining well above target, the Governing Council judged that interest rates would need to be raised further.
The report shows that there is strong growth in Canada and the economy is moving into excess demand. Wage growth is back to its pre-pandemic level and continues to rise.
BOC Governor Tiff Macklem confirmed at his press conference that we are witnessing a very impressive economic recovery.
You can find the full recording of the press conference here:
On Thursday, the European Central Bank (ECB) was the latest to issue a monetary policy statement, leaving rates unchanged.
In principle, there has been no change in the political outlook. However, there have been some changes in future guidance, as the ECB emphasises flexibility in taking any future decisions. So, we will see how "flexible" the ECB will be in the future and whether we will move interest rates up.
Meanwhile, the ECB has kept rates at zero since 2016.
The start of the current trading week will be slow due to the Easter holiday celebrations. The second half of the week will be more interesting as it will bring some interesting data on retail sales from Australia, Canada and the UK, which will be accompanied by a change in the Eurozone consumer price index.
We wish you a wonderful Easter!
Sources
Welcome to our regular recap of what happened over the past week.
The Reserve Bank of Australia (RBA) earlier this week left the cash rate unchanged at 0.10 %, as also expected. Anyway, we could see minor changes in the RBA's rhetoric. The RBA is moving in a more aggressive direction and dropping the stance of being patient. This leads to assumptions that the RBA may in the near term raise rates. Before raising rates, however, the RBA wants to see that inflation is within the target range of 2 to 3 %.
The economy remains resilient and its strength is reflected in the labour market. Spending is starting to rise as wage growth has accelerated.
Keeping rates unchanged and a slight change in the RBA's rhetoric helped the Aussie currency to strengthen.
Read the full statement:
https://www.rba.gov.au/media-releases/2022/mr-22-11.html
Last week also brought interesting numbers on the euro. Earlier in the week we were able to see new data on the purchasing managers' indices (PMIs), which were almost unchanged as expected:
Looser restrictions under Covid helped to push services activity in the euro area to a four-month high.
In the second half of the week, we could expect new data from the labour market and the publication of the ECB monetary policy meeting report.
Retail sales improved slightly in February - actual: 0.3 % / previous 0.2 %
It is clear from the ECB minutes that a large number of members see that the current trend of rising inflation in the euro area urgently requires further action.
Full report:
https://www.ecb.europa.eu/press/accounts/2022/html/ecb.mg220406~8e7069ffa0.en.html
Last week also saw the release of the latest UK Purchasing Managers' Index (PMI) numbers, which were slightly more positive:
UK economic growth continued to accelerate in March, following the Omicron-induced slowdown at the turn of the year, and business activity grew at its fastest pace.
Construction activity also continues to grow strongly.
The main event of last week was the so-called FOMC minutes on Wednesday, which only concern the US dollar.
The minutes show that many participants are in favour of raising rates by another 50 basis points. The Fed had already raised rates by 25 basis points on 16 March.
This gives the US dollar bullish signals for the future.
Full entry:
https://www.federalreserve.gov/monetarypolicy/fomcminutes20220316.htm
Last week, we received mainly new data from Canada concerning the labour market.
The new results show us that Canada's unemployment rate is steadily declining, and that's a good thing.
Unemployment rate - current: 5.3 % / previous: 5.5 %
The current trading week will be mainly marked by interest rate decisions coming out of New Zealand, Canada and the Eurozone. During the week we will also get a number of data regarding consumer price change (CPI) from the UK and the US. There will also be new data from the Australian labour market later in the week.
Keep an eye on our regular issues to keep track!
Sources
We bring you the regular Monday summary of economic events we followed in the last trading week, which was rich in statistical data.
Read on to stay in the loop!
The US currency has had a really rich week in terms of economic events. On Wednesday we could observe the growth of the US quarterly GDP, which was considerable (current: 6.9 %, previous: 2.3 %).
On the same day, the latest figures were released, which concerned the March ADP unemployment rate in the USA (current: 455 thousand). The ADP National Employment Report is a measure of monthly changes in nonfarm private employment.
The market is satisfied with the jobs situation at the moment. There is evidence that the Fed has changed its rhetoric to say that a hike to get inflation under control will be good for the long-term health of the labor market.
The end of the week brought us data concerning the so-called US NFP (nonfarm payrolls). These measure the change in the number of people employed during the previous month, excluding agriculture. Job creation is the main indicator of consumer spending, which makes up the bulk of economic activity.
The labour market remains strong and wage growth continues.
Friday's US unemployment rate showed us again that the labour market is starting to recover and strengthen (current: 3.6 %, previous: 3.8 %).
The US President's comments - J. Biden confirmed the situation when he said that more American workers now have real power to get better wages.
Wednesday's news from the Eurozone showed us that the unemployment rate in the Eurozone is on a downward trend (current: 6.8 %, previous: 6.9 %). The unemployment rate is thus at a record low. This is due to more favourable labour market conditions, which continue to underline the recovery from the pandemic.
The British pound had an interesting week in terms of economic news. In the second half of the week, the UK GDP news came out:
Late in the week, data was released regarding the Purchasing Managers' Index (PMI), which generally gives us a current view of the health of the economy (current: 55.2, previous: 58).
UK manufacturing growth slowed to a 13-month low as output and new orders grew at a reduced pace, while new export business fell for a second month. Inflationary pressures also affected overall activity.
The Australian currency has had a somewhat quiet week. At least as far as economic data is concerned.
At the beginning of the week we could only see new data concerning Australian retail sales. It turned out only slightly more positive (actual: 1.8 %, previous: 1.6 %) and thus was not particularly bullish for the Australian currency.
Similar to the Australian currency (AUD), the Canadian dollar (CAD) had a quieter week.
On Thursday (31 March) we could see the results of the monthly GDP, which increased only slightly (current: 0.2 %, previous: 0.1 %).
This week we will focus mainly on the Reserve Bank of Australia, which will decide on Tuesday on the interest rate change. Expectations for a hike are not very high. The RBA is leaving rates at 0.10 % from November 2020.
The second half of the week will offer us some economic data, mainly related to unemployment in Canada and retail sales in the Eurozone.
Keep an eye on our regular issues to keep track!
Sources
Welcome to reading the regular Monday Fundamental Summary that we followed during the last trading week.
Last week was particularly rich in statistical data, which came mainly in the second half of the week.
Read on to find out more!
On Wednesday, data from the UK came in regarding the year-on-year change in Consumer Price Index (CPI). The index measures the change in the price of goods and services from the consumer's perspective, making it one of the key indicators of inflation. The index is thus once again reaching all-time highs, which will only continue to put pressure on the Bank of England (BOE) to start tightening policy again in the coming months.
At the end of the week, changes in UK retail sales came in for the UK currency. These turned out to be rather more pessimistic than expected (actual: -0.3 %, previous: 1.9 %).
It looks like the "cost of living crisis" is becoming more apparent.
On Wednesday, we saw comments from Fed Chairman Jerome Powell, who addressed the topic of digital currencies. Powell mentioned that there will have to be new rules and laws to deal with digital currencies, as the existing regulations are not ready for this. This is rather preliminary and general information for now and there is nothing new going on. For now, the Fed is exploring the benefits that digital currency could bring.
Later that day, Loretta Mester, the president of the Cleveland Fed, spoke, advocating a more aggressive policy. In her view, it was better to be more aggressive now because it would happen later anyway. So the mood here is that the Fed is going to prepare for further rate increases and up to 50 base points are in play.
The Japanese currency weakened for the second week in a row against other currencies traded on the forex market. The decline came when the Bank of Japan decided earlier this month to leave rates unchanged. However, the Japanese currency was not helped by the earthquake that struck northeastern Japan in the Fukushima area two weeks ago.
You can read more in the last release of the most interesting economic events.
Gōshi Kataoka (BOJ board member) said in his speech on Thursday that the risks to the Japanese economy are skewed to the downside. The downward pressure on it is increasing.
Kataoka also said that the BOJ is prepared to take appropriate action as needed in light of the pandemic's impact on the economy.
Full minutes of the March meeting:
https://www.boj.or.jp/en/announcements/release_2022/k220318a.pdf
This week will again be richer in statistical data. On Tuesday, we will expect results on February retail sales in Australia. In the middle of the week, we will have data from the US, which will mainly concern the US GDP.
The second half of the week will bring interesting GDP data coming out of the UK and Canada.
The most interesting will be the end of the week, when we will expect changes in the Eurozone Consumer Price Index (CPI) and the change in the US unemployment rate, accompanied by the change in the number of people employed during the previous month, excluding agriculture (Nonfarm payrolls).
Thus, we expect that the current trading week may also bring quite high volatility on the aforementioned currencies.
So keep an eye on our regular issues to keep track!
Sources
The start of a new trading week is here. That's why we have prepared another article in our regular series of summaries of economic events that affected our trading during the past week!
The first half of the week did not offer us much interesting data. However, this was corrected at the end of the week.
The week started with new figures concerning the current GDP development in the euro area.
The change in quarter-on-quarter and year-on-year GDP was almost as expected and quite positive for the euro:
The euro area economy was growing moderately at the end of 2021. The world's current focus is still on the war in Ukraine, thus dictating sentiment for the euro.
The second half of the week brought the promised volatility to the euro, thanks to the informal meeting of EU leaders held on Thursday and Friday.
Also on Thursday, the European Central Bank left its current key policy rates unchanged at its monetary policy meeting. Rates have remained at zero since 2016.
Read also: Latest Euro developments - ECB and EU leaders meeting
The US currency did not see any interesting data until Thursday.
First, the US CPI (Consumer Price Index) reports came out, which were positive for the US Dollar as expected.
Later, the balance sheet of the US federal budget came out, which was not very optimistic...
The February US federal budget deficit was USD 217 billion, compared to the expected USD 49 billion.
It's not a number that will completely corner the markets, but at least we know where we stand. Anyway, when you add in the prospective costs that will fall on defense, energy, and inflation dampening, it at least makes a good case for another deeper deficit.
At the end of the week we could finally see some interesting data from the labour market in Canada.
The actual change in employment came out really positive (366.6 thousand actual vs. 160 thousand expected). This is the biggest jump since October 2020. Furthermore, the unemployment rate is expected to fall from 6.5 % to 6.2 %.
In January, the Canadian labour market recovery suffered a setback due to the Omicron option, with temporary layoffs in service industries and increased absenteeism. However, things now seem to be moving in the right direction.
Overall, the news was much better than expected, and a sharp rebound from the omicron. Expectations of a Bank of Canada (BOC) hike at the next meeting remain in favor of another 25 bps.
The positive news also helped the "Canadian", which started to strengthen against the dollar.
This week will have appropriate volatility. On Wednesday and Thursday, the markets will await the announcements regarding interest rate changes from the US and the UK. The Bank of Japan will then close the week with its interest rate statement.
Throughout the week, however, we will be watching incoming economic data from Canada regarding retail sales and the Eurozone Consumer Price Index.
Keep an eye on our regular issues to keep track!
Sources
The informal meeting of European leaders began on 10 March 2022 and will continue today (11 March 2022).
This time the meeting is held in Versailles and is attended by the heads of state and government of the European Union.
The topic of the meeting is Russia's military aggression against Ukraine and its consequences.
The EU leaders condemned the Russian military invasion of Ukraine, which constitutes a flagrant violation of international law and threatens European security, while praising the courage of the Ukrainian people in defending their homeland.
EU leaders continue to discuss how to strengthen European sovereignty and reduce dependence on Russia.
In this context, the following important topics are also discussed
The day before the EU leaders' meeting (9 March 2022), the EU Council adopted further measures, which are also directed at Belarus, which is participating in the invasion of Ukraine.
Measures taken include
More on the EU's response to the Russian invasion
https://www.consilium.europa.eu/cs/policies/eu-response-ukraine-invasion/
The European Central Bank left its current key rates unchanged at the meeting. Practically nothing else could be expected.
As we can see in the chart, the ECB has not raised rates since 2016 and they are currently still at zero.
However, the European Central Bank surprised the markets by trying to end the stimulus earlier than planned!
The statement said that the ECB would end its bond-buying programme in the third quarter if the economy allowed. But the ECB also added that it was ready to reconsider the decision if the outlook changed.
A couple of minor changes accompany the announcement that the European Central Bank is slowly and surely moving away from the rhetoric that key rates could be lower than they currently are.
That's not surprising. No one would have expected a rate cut below 0% to happen yet.
The surprise move comes amid growing fears that the eurozone economy could soon experience stagflation. Consumer prices in the 19 countries that use the euro have climbed to record highs for four consecutive months, most recently reaching 5.8% in February.
The President of the European Central Bank, Christine Lagarde, mentioned at her press conference that an increase in key rates could come after the end of quantitative easing (QE).
The prospect of a rate hike is certainly good news for the bulls. But Lagarde later warned that inflation could be much higher in the near future and the euro became rather bearish.
The euro is still under pressure after Wednesday's strengthening, as all diplomatic efforts in the negotiations between Russia and Ukraine are almost fruitless.
Keep following our news to stay up to date!
Sources
The informal meeting of European leaders began on 10 March 2022 and will continue today (11 March 2022).
This time the meeting is held in Versailles and is attended by the heads of state and government of the European Union.
The topic of the meeting is Russia's military aggression against Ukraine and its consequences.
The EU leaders condemned the Russian military invasion of Ukraine, which constitutes a flagrant violation of international law and threatens European security, while praising the courage of the Ukrainian people in defending their homeland.
EU leaders continue to discuss how to strengthen European sovereignty and reduce dependence on Russia.
In this context, the following important topics are also discussed
The day before the EU leaders' meeting (9 March 2022), the EU Council adopted further measures, which are also directed at Belarus, which is participating in the invasion of Ukraine.
Measures taken include
More on EU reactions to the Russian invasion
https://www.consilium.europa.eu/cs/policies/eu-response-ukraine-invasion/
The European Central Bank left its current key rates unchanged at the meeting. Practically nothing else could be expected.
As we can see in the chart, the ECB has not raised rates since 2016 and they are currently still at zero.
However, the European Central Bank surprised the markets by trying to end the stimulus earlier than planned!
The statement said that the ECB would end its bond-buying programme in the third quarter if the economy allowed. But the ECB also added that it was prepared to reconsider that decision if the outlook changed.
A couple of minor changes accompany the announcement that the European Central Bank is slowly and surely moving away from the rhetoric that key rates could be lower than they currently are.
That's not surprising. No one would have expected a rate cut below 0 % to happen yet.
The surprise move comes amid growing fears that the eurozone economy could soon experience stagflation. Consumer prices in the 19 countries that use the euro have climbed to record highs for four consecutive months, most recently reaching 5.8 % in February.
President of the European Central Bank - Christine Lagarde mentioned at her press conference that an increase in key rates could come after the end of quantitative easing (QE).
The prospect of a rate hike is certainly good news for the bulls. However, Lagarde later warned that inflation could be much higher in the near future and the mood on the euro became rather bearish.
The euro is still under pressure after Wednesday's strengthening as all diplomatic efforts in the negotiations between Russia and Ukraine are almost fruitless.
Keep watching our newsto keep you in the loop!
Sources
We bring you our regular Monday dose of summaries of the most interesting economic events that have had an impact on the currencies we trade in the past trading week!
ECB Executive Board member Fabio Panetta kicked off the week with an online seminar focused on inflation in the euro area.
Panetta mentioned that it would not be wise to commit to future policy actions in advance. The role of the ECB is clear: we will take all necessary measures and use all our tools to strengthen confidence and stabilise financial markets. This is the duty of a central bank in times of need.
Panetta's full speech can be found here:
https://www.ecb.europa.eu/press/key/date/2022/html/ecb.sp220228~2ce9f09429.en.html
In the second half of the week, we saw new economic data regarding the Consumer Price Index (CPI) and the change in unemployment.
The year-on-year change in the euro area Consumer Price Index climbed to a current value of 5.8 %, compared with the previous value of 5.1 %. This implies a bullish signal for the euro.
Inflation in the eurozone is rising to new highs, and this only adds to the pressure on the ECB to deliver a firmer message at next week's meeting.
Thursday's data on the change in the unemployment rate was also favourable for the euro (current: 6.8 %, previous: 7.0 %). The unemployment rate is falling again and this only confirms the further improvement in labour market conditions.
On the same day, the ECB also issued its expected monetary policy statement, followed by a press conference.
The Governing Council expects the ECB's key interest rates to remain at current or lower levels until inflation reaches 2 %.
The full statement can be found here:
https://www.ecb.europa.eu/press/pr/date/2022/html/ecb.mp220203~90fbe94662.en.html
The US dollar also had a relatively rich week for fundamentals.
At the beginning of the week, the latest Purchasing Managers' Index numbers came in, which were slightly more positive than expected (current: 58.6, previous: 57.6).
Chairman of the Federal Reserve - Jerome Powell mentioned in testimony before the House Financial Markets Committee on Thursday that The Fed must step back from highly stimulative monetary policy.
Rising mortgage rates are likely to start cooling demand for housing, and housing is a significant component of inflation. Powell also mentioned that the U.S. economy is very strong, but the labor market is extremely tight.
The speech suggests that the Fed could raise rates by 25 basis points, but would raise them by 50 basis points if necessary.
Record of the output:
The second half of the week brought a number of data regarding the change in the US Purchasing Managers' Index (PMI), which came out positive for the USD:
Faster production growth was supported by an increase in new sales. A solid increase in demand from foreign clients also contributed to total new orders.
Chris Williamson's chief business economist, IHS said service-sector companies reported a strong rebound in business activity during February as measures to contain the virus were eased to their weakest level since November. The data show that Omicron had only a modest and short-term impact on the economy.
On the other hand... The conflict in Ukraine, however, is leading to further upward movements in energy and broader commodity prices, which will further add to US inflationary pressures
The end of the week was also enriched by data from the US labour market. The unemployment rate fell by 3.8 % in February (previous 4 %), confirming the downward trend. However, the US labour market remains tight.
The Canadian dollar was the driver throughout last week, with interesting economic results coming in.
At the beginning of the week we were waiting for the result of the month-on-month GDP, which was a bit worse than expected (currently 0 %, previous: 0.6 %).
However, the markets were waiting for Wednesday's Bank of Canada (BOC) statement regarding the interest rate change.
Bank of Canada raised rates by 25 basis points to 0.50 %as expected and continues in the reinvestment phase. Furthermore, rates are expected to continue to rise at the next meetings!
As in other countries, Russia's invasion of Ukraine remains a major source of uncertainty. As a result, financial market volatility has increased.
BOC Governor - Tiff Macklem told the conference that Russia's invasion of Ukraine will cause further supply disruptions and the invasion will hit economic activity.
The full report can be found here:
https://www.bankofcanada.ca/2022/03/fad-press-release-2022-03-02/
Europe is still facing a war in Ukraine that has no end in sight. Neither are the negotiations to end this war.
As a result, many European currencies have become risky for the markets.
This week, the European Central Bank (ECB) will decide on a change in the interest rate, which has been at 0 % since 2016.
The ongoing war in Ukraine will be an integral part of the high volatility in the markets.
Keep an eye on our other reports to stay up to date!
Sources
The Russian currency is currently experiencing a truly "devastating" period beyond memory.
The Russian ruble (RUB) was hit hard by the sanctions imposed on Russia by the West over the weekend.
The reason for the adoption of the toughest sanctions on Russia to date is the ongoing and escalating situation in Ukraine.
List of sanctions
In addition to the above-mentioned toughest sanctions, the US, the UK and the EU have adopted a number of smaller ones, such as the closure of EU airspace to Russian airlines.
Although the current sanctions will have a very negative economic impact on Russia, and denying access to the Russian Central Bank's foreign exchange reserves could bring about a total collapse of the ruble, the Russian people in particular will be significantly affected.
Russia sought to avoid a financial meltdown on Monday as Russian President Vladimir Putin held crisis talks with his top economic advisers after the ruble plunged to a record low against the US dollar.
The ruble fell by almost 30 % as a result of the weekend sanctions
In response to the currency depreciation, the Russian central bank decided to raise the key rate to 20 % to avert the risks of ruble depreciation.
The increase in the base rate from 9.5 % to 20 % is the most in almost twenty years. According to the central bank, the rate hike is designed to offset the increased risk of ruble depreciation and inflation. Further, the central bank and the finance ministry have ordered companies to sell 80 % of their earnings in foreign currency.
Forex brokers have suspended ruble trading!
During the past week, many brokers suspended trading of currency pairs with the ruble. The reason was the escalating situation, due to which the liquidity of the Russian currency was falling sharply. This was alarming news for traders of "exotics" and the system close only (traders could only close positions held on currency pairs with the ruble) did not add much to the situation.
Of course, we are currently in very difficult times, which are not only having an impact on the currency markets. Especially on the European ones.
It will certainly depend on how far this conflict goes.
However, it is certain that the steps taken so far from all sides will have a big impact on the Russian economy.
Rising interest rates have made loans and mortgages more expensive, which will slow down investment.
The Russian central bank also announced that it will release 733 billion rubles from local banks' reserves by releasing the capital buffer created on unsecured consumer loans and mortgages.
Unfortunately, ordinary Russians will mainly feel inflation, which is reaching dizzying heights and threatens hyperinflation.
Thus, it cannot be said that the Russian currency has an optimistic future in the near future.
Do you want to keep up to date with what's happening in the markets?
Follow our regular summary of the most interesting economic events!
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We bring you another regular recap of the most interesting events from last week that affected our trading in the currency markets!
The beginning of the last trading week was in a rather classic trading spirit. However, that changed on Thursday when the Russian Federation attacked Ukraine at 4am CET. Panic and fear of what was going to happen took over the markets.
What impact has this had on currencies?
Read below.
Right from the start of the week, the first data came from the euro area, mainly concerning the change in the Purchasing Managers' Indices (PMI). These came out broadly positive and became a bullish signal for the euro, as higher readings are considered positive for the currency.
Manufacturing PMI - current: 58.4/previous: 58.7
Composite PMI - current: 55.8/previous: 52.3
Services PMI - current: 55.8/previous: 51.1
In the middle of the week, data were also released on the change in the Consumer Price Index (CPI), which measures the price of goods and services from the consumer's perspective and is thus becoming one of the key ways of measuring purchasing trends and inflation. The current number came out unchanged (5.1 %) and has become rather neutral for the currency.
The US currency has had a somewhat busier week. Following Monday's American holiday, dubbed "Presidents Day", which Americans celebrate every third Monday in February, new economic data came in, again relating to the Purchasing Managers' Index (PMI). As with both of the aforementioned currencies, this data came in more positive than expected for the US Dollar.
Manufacturing PMI - current: 57.5/previous: 55.5
Composite PMI - current: 56.0/previous: 51.1
Services PMI - current: 56.7/previous: 51.2
The second half of the week then brought new numbers regarding US quarter-on-quarter GDP, which were slightly stronger than the previous one (current: 7.0 %, previous: 4.9 %).
At the end of the week, the US Fed published its monetary policy report.
The Fed noted that it is firmly committed to achieving the monetary policy target given to it by Congress. However, the economy's path going forward will depend on the course of the virus and related measures to limit its spread.
Read the full report here:
https://www.federalreserve.gov/newsevents/testimony/powell20210223a.htm
More varied data came for the New Zealand currency in the second half of the week, which focused mainly on the change in New Zealand interest rates and retail sales numbers.
The Reserve Bank of New Zealand (RBNZ) raised its cash rate for the third consecutive time by 25 basis points (current rate: 1 %, previous rate: 0.75 %) as expected. The more hawkish commentary, which was a surprise, also certainly helped to strengthen the New Zealand dollar.
The RBNZ says further tightening is needed and RBNZ Governor Adrian Orr mentioned at his press conference that a further 50 basis point rate hike cannot be ruled out in the future.
That was enough hawkish commentary to cause the NZD to strengthen further.
The full statement can be found here:
https://www.rbnz.govt.nz/monetary-policy/monetary-policy-statement/mps-february-2022
In the second half of the week, data regarding New Zealand retail sales were released, which positively surprised and gave the New Zealand currency further impulses to strengthen (current: 8.6 %, previous: -8.1 %).
24 February - a day that made history!
On Thursday, February 24, 2022, the world and financial markets woke up to a new morning. A relatively classic week turned into hell and uncertainty for everyone.
The day after the Russian national holiday, named "Defender of the Fatherland Day", at 4 a.m. CET, Russian Federation troops attacked Ukraine.
This day will go down in history, as a war in Europe, in modern history.
This dramatic event did not only leave Europe, which watched helplessly at first, cold, but also gave unexpected volatility to the financial and currency markets, which experienced a big shock.
A number of European currencies (PLN, HUF, CZK) experienced a proper depreciation as a result of the big shock and uncertainty.
However, there were also currencies that began to strengthen in response to the situation. This was especially true for the Japanese yen (JPY) and gold. These instruments are usually considered to be the so-called "safe haven" in times of uncertainty.
Earlier this week, GDP numbers from Australia and Canada are due. The markets will also be waiting for Tuesday and Wednesday's interest rate announcements coming from Australia and Canada.
However, it is necessary to be on guard, because beyond these classic economic data, the whole world and the markets will be watching how the escalating situation around the war in Ukraine will develop.
Sources
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