What you should take care of on Wednesday, February 23:
Short-lived optimism ruled financial markets during London business hours as Ukrainian President Volodymyr Zelenskyy said he believes there will be no war and no wider escalation. However, the European and US authorities have anticipated sanctions on Russia. The positive sentiment did not last long and risk aversion dominated the US session.
The UK was the first to take action, announcing that the country would sanction five Russian banks and three individuals, adding that this is only the first tranche of what the government is prepared to do. In addition, Ursula von der Leyen, President of the European Commission, tweeted that “the Union remains united in its support for the sovereignty and territorial integrity of Ukraine” and that “a first package of sanctions will be formally presented today.”
US President Joe Biden gave a press conference about it. Among other things, he said: “We have no intention of fighting Russia,” adding that US forces in Europe will help the Baltic allies, but “these are totally defensive moves on our part.” He says that the United States and its allies “will defend every inch of NATO territory and honor the commitments we made to NATO.”
Biden’s dovish words helped Wall Street trim some of its intraday gains, pushing the dollar lower at the end of the day.
The EUR/USD pair remained lifeless around 1.1350, while the GBP/USD saw a bit more action but ended the day around 1.3560. USD/CAD pulled back sharply before the close and settled around 1.2740, while AUD/USD advanced for the second day in a row and settled around 07220.
Safe havens CHF and JPY fell against their US rival, while gold prices consolidated gains, with the pair now trading around $1,900 a troy ounce. Crude oil prices fell, with WTI at $91.60 a barrel.
Markit’s PMIs for the EU and the US were generally encouraging, signaling an economic expansion in February as the world appears ready to end the coronavirus pandemic.
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
