More sanctions to come

Today's news headlines: 

‘Biden declares Putin “isolated from the world” and hints at more sanctions’.
 In US President Joe Biden’s first State of the Union Address during his presidency, the Russia-Ukraine conflict dominated. He condemned Vladimir Putin for his actions and warned that more sanctions are yet to come with the US recently closing its airspace to any Russian flights. Foreign policy was at the top of the agenda during the Bush-era of 2002; Biden finds himself quickly becoming a wartime president. (Financial Times)

‘IEA members agree 60mn-barrel oil release in response to Ukraine war’. Oil markets have continued to climb since the beginning of the year, and with the recent Russia-Ukraine conflict, supply fears have only grown. The US is reported to be releasing 30mn barrels of its strategic petroleum reserve while other energy-producing nations will top the total up to 60mn. Oil prices haven’t responded positively. With Brent Crude and WTI topping $110 per barrel, analysts have suggested this additional supply won’t be enough to cool supply fears. (Financial Times)


Today

Asian indices moved lower overnight following another slide on Wall Street. The US Dollar Index has gained 0.20% in early trading as yields move higher. European markets have opened in negative territory, with Germany’s DAX down 50 basis points.

Events

Australian Gross Domestic Product q/q (Q4. 21): 3.4% (est. 3.5%)
UK Nationwide House Price Index m/m: 1.7% (est. 0.6%)
Spanish Unemployment Change: -11.4K (est. -44.5K)
Eurozone Consumer Price Index and Core CPI flash estimate y/y: 10:00AM
US ADP Non-Farm Employment Change: 1:15PM
US Federal Open Market Committee member James Bullard speaks: 2:30PM
Bank of Canada Rate Statement: 3:00PM
US Federal Reserve Chairman Jerome Powell testifies: 3:00PM
US Crude Oil Inventories: 3:30PM 

Interbank rates:

GBP/USD – 1.3287
GBP/EUR – 1.1979
EUR/USD – 1.1091
USD/CAD – 1.2727

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