No peace in sight, financial turmoil continues

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What you need to take care of on Friday, March 11:

A busy day ended with US dollar trade mixed across the FX board. It managed to post gains against its European rivals and the JPY, but lower against commodity currencies.

EUR/USD is back below the 1.1000 level, while GBP/USD is barely holding above 1.3100. AUD/USD is trading near a daily high of 0.7363, while USD/CAD is hovering around 1.2750.

All four rounds of peace talks between Russia and Ukraine ended abruptly and without agreement on a ceasefire or humanitarian corridors. International sanctions against Russia are piling up, but Moscow shows no signs of letting up after a fortnight.

The European Central Bank has announced its monetary policy decision. As widely expected, rates remained unchanged. However, Lagarde announced a twist in its asset purchase program (APP) which is now expected to end in the third quarter of this year. The APP will amount to 40 billion euros in April, 30 billion euros in May and 20 billion euros in June.

President Christine Lagarde noted that Moscow’s invasion of Ukraine is a turning point for Europe and is now a new downside risk, repeating that they “will do everything within our mandate to pursue stability prices”. The central bank has lowered its growth forecasts.

The US released the Consumer Price Index for February which came in at 7.9% YoY as expected, still its highest in 40 years. The title put pressure on Wall Street, already plagued by geopolitical turbulence. US indices remain in the red heading into the close, but managed to halve their early losses.

The yield on the 10-year US Treasury rose to 2.02% and is heading towards the close at around 2.0%.

Gold ends the day unchanged, trading a few dollars below the $2,000 level. Crude oil prices fell, with WTI changing hands at around $106.20 a barrel. The drop in oil was attributed to comments by Russian President Vladimir Putin, who said Moscow would deliver on its energy-related commitments.

Dogecoin price suffers setback as Moscow ignores Ukraine peace offer


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