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Headlines around Ukraine crisis drive markets

Wednesday 23 February, 2022

Daily Currency Update

Without notable data releases for the day, currency markets on Wednesday were mostly driven by geopolitical developments in the Russia-Ukraine conflict. Safe haven currencies like the US dollar and Japanese yen benefitted overnight as Russia ordered troops into separatist regions of eastern Ukraine. In response, the United States and its allies unveiled more sanctions against Russia. A senior US official said the move did not yet constitute a “further invasion” that would trigger the harshest sanctions, but that a wider campaign could come at any time.  The US Dollar Index was up 0.12% trading at around 96.14 at the time of writing.

Key Movers

The pound fell against the US dollar and the euro on Wednesday following parliament testimony from Bank of England governor Andrew Bailey addressing current inflation risks and the economic outlook. Bailey also warned that UK households may experience even tighter living standards due to "external shocks" from the escalating crisis in Ukraine, which could have an upside risk on energy prices. GBPUSD was down 0.24% trading at 1.3550 while EURUSD was down 0.07% trading at 1.1318 at the time of writing.

Expected Ranges

  • EUR/USD: 1.1309 - 1.1357 ▼
  • GBP/USD: 1.3553 - 1.3617 ▼
  • AUD/USD: 0.7206 - 0.7282 ▲
  • USD/CAD: 1.2684 - 1.2782 ▼