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Russia and Ukraine continue to hold headlines

Wednesday 2 March, 2022

Daily Currency Update

Risk appetite amongst investors has slipped further in the past 24 hours as Russia’s invasion of Ukraine has escalated, creating more uncertainty for financial markets. In the past 24 hours the US dollar has gained against a basket of major currencies. In times of global uncertainty, investors tend to buy USD as a safe haven currency. GBP/USD has fallen from a session high of 1.3430 yesterday, touching 1.3280 earlier this morning. EUR/USD has been as low as 1.1080 this morning. EUR/USD attempted to break back above 1.1250 on Friday. Macroeconomic data has been overshadowed by news headlines, but it’s worth noting that US ISM manufacturing PMI grew in February. This was the 2nd consecutive month of growth and registered 58.6% versus an expected 58%.

Key Movers

Sterling has pushed higher against the euro, sitting on the top side of recent ranges. As expectations are minimising for major banks to raise interest rates over the year, so are the views that the European Central Bank will make their first rate hike in 10-years. A push back from June’s predicted 10 basis-point hike to September has put further pressure on the euro with other banks, like the Bank or England, planning to raise sooner. GBP/EUR has traded between 1.1900 -1.2000 in the last month and movement in the past 24 hours sees the currency pair back above 1.2000.

Expected Ranges

  • GBP/USD: 1.3240 - 1.3380 ▼
  • GBP/EUR: 1.1940 - 1.2020 ▲
  • GBP/AUD: 1.8260 - 1.8550 ▼
  • EUR/USD: 1.0980 - 1.1150 ▼