Today's news headlines:

'Biden warns Russia of "response" if it uses chemical weapons'. US President Joe Biden has emphasised that if Russia were to implement the use of chemical weapons in Ukraine, it would bring about a proportionate response from both US and Nato. Biden is trying to galvanise the US and Europe as uncertainty remains on whether China will provide military support to Russia. Vladimir Putin's forces are yet to take control of the capital of Kyiv, as key infrastructure points around Ukraine are targeted for assault. (Financial Times) 

'US plans to boost supplies of liquefied natural gas to EU'. As the EU looks to diversify its energy procurement away from Russia, the US has pledged to provide 15bn cubic metres of natural gas throughout the course of this year. There have been calls to ban Russian energy imports completely, but German Chancellor Olaf Scholz has been wary of the consequences suggesting the probability of a recession would be heightened. (Financial Times) 

Today

Asian markets continued their move lower overnight following a positive close on Wall Street. US crude oil is down 2% today, trading close to $110 per barrel, while the Dollar Index has lost 15 basis points. European markets are pointing lower this morning. 

Events

UK Gfk Consumer Confidence: -31 (est. -30)
UK Retail Sales m/m: -0.3% (est. 0.6%)
German ifo Business Climate: 9:00AM
UK Financial Policy Committee Statement: 10:30AM
FOMC member John Williams speaks: 2:00PM
FOMC member Christopher Waller speaks: 4:00PM

Interbank rates:

GBP/USD – 1.3175
GBP/EUR – 1.1964
EUR/USD – 1.1014
USD/CAD – 1.2544

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