Tuesday February 22nd Morning Update

The is US$ lower, oil prices higher, equity markets lower while and US yields remains unchanged. Market laser focused on the Russia/Ukraine situation. Russia recognized two breakaway regions in eastern Ukraine and ordered the deployment of troops drawing international condemnation. Journalist reports seeing tanks and other military hardware moving through the separatist-controlled city of Donetsk overnight, but no insignia were visible on the vehicles. Germany suspends Nord Stream 2 gas pipeline. Biden to announce sanctions later today. Oil price set to test fresh peaks barring Iran breakthrough. In other news.  House of Commons passes Emergencies Act motion as Trudeau warns threat of convoy trucks could return

Covid. Seattle will lift its proof-of-vaccination requirement for restaurants, theaters and gyms starting March 1. Johnson lifts COVID-19 restrictions in England. Britain to roll out 4th COVID-19 vaccine shot for people 75 and older. In currency markets. Despite the yen pair’s latest corrective pullback, the market’s risk-off mood underpins the safe-haven demand of the USD/JPY. AUD and NZD gained 0.42% and 0.60% respectively as CNY remained flat.

USD/CAD climbed to a one-week high on Tuesday amid a goodish pickup in the USD demand. Escalating Russia-Ukraine tensions, the risk-off impulse benefitted the safe-haven greenback. Bullish crude oil prices underpinned the Loonie and might cap any further gains for the major. Support resets 1.2689, while resistance remains at 1.2785.

EUR/USD regained its traction during the European trading hours and climbed above 1.1330. Although the market mood remains cautious, the upbeat IFO sentiment data from Germany seems to be helping the shared currency find demand. Investors eyes geopolitical headlines surrounding the Russia-Ukraine crisis. Support lowers to 1.1285 while resistance holds at 1.1425.

Once again EURGBP bounced off its lows of .8315 solidifying this level as key support area. Support holds at .8300 (1.2048) while resistance remains at .8450 (1.1834)

GBP/USD fell below 1.3560 but managed to stage a rebound toward 1.3600 in the early European session. British Prime Minister Boris Johnson is expected to announce sanctions against Russia later in the day. Support lowers to 1.3525, while resistance adjusts to 1.3610.

Other Ccy levels vs C$ – EURCAD 1.4441, GBPCAD 1.7278, AUDCAD.9196, CADCHF.7217, CADJPY 90.23, CADTHB 25.41, CADCNY 4.9751, CADNOK 6.9878, CADSEK 7.3363, CADDKK 5.1507, CADZAR 11.9064.

Other Ccy levels vs US$ – JPY 114.87, CHF .9187, AUD .7224, NZD .6733, CNY 6.3316, MXN 20.3010, INR 74.78, PLN 4.0018, CZK 21.566, ZAR 15.1510, ILS 3.2201, AED 3.6726, KWD 0.30214.

Other Major X levels – EURCHF 1.0423, EURJPY 130.38, EURSEK 10.5946 EURNOK 10.08, GBPCHF 1.2453, EURAUD 1.5707, GBPAUD 1.8775, AUDCHF.6636, AUDJPY 83.01, CHFJPY 125.07.