Ukraine escalation boosts USD but sees quick reversal

Matthew Ryan, CFA Ebury

Renewed concerns surrounding the possibility of an escalation in the Ukraine conflict led to a brief bout of Dollar strength yesterday, although this rally was quickly reversed.

We’re in somewhat of a calm after the storm, as markets take stock after the US election and catch their breath during what looks set to be a relatively quieter period.

Macroeconomic news is at a premium in the US throughout most of the week, and headlines centering on the appointments within Trump’s cabinet have died down somewhat. Trading in the US today should be light, although market participants will likely be keeping one eye on remarks from FOMC officials Cook, and Bowman this afternoon. Weekly jobless claims data (Thursday) will give us the latest read on the state of the US labour market. This will be followed by the all-important PMI data from S&P Global on Friday afternoon.

Author

Matthew Ryan, CFA

Ebury

Matthew is Global Head of Market Strategy at FX specialist Ebury, where he has been part of the strategy team since 2014. He provides fundamental FX analysis for a wide range of G10 and emerging market currencies.

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