Greenback Extends Pullback Even As Russian Invaders Approach Kyiv

Abundant but noisy headline flow surrounding Russia's ongoing invasion of Ukraine dominated as missiles rained down on Kyiv. General reporting suggested that that Russian troops were advancing into the outskirts of the capital with the aim of capturing the city and overthrowing the government. President Zelensky vowed to stay in Kyiv as his troops were mounting resistance on several fronts. Meanwhile, market participants assessed the barrage of sanctions against Moscow unveiled Thursday by Western leaders.

• The greenback underperformed even as Fed's Waller who flagged potential for a 50bp rate hike in March, if the data facilitates the need for such a move. The DXY extended its pullback from a multi-month high printed Thursday.
• The Antipodeans found some poise despite the absence of notable local catalysts, with broader risk sentiment stabilising after the Thursday session.
• Scandie FX remained under pressure owing to their exposure to the war in Ukraine, with SEK lagging all its G10 peers except USD.
• The rouble reversed initial losses after Moscow re-open as U.S. President Biden said the West will hold off on pulling the plug on Russia's access to the SWIFT payments system.
• U.S. personal income/spending, German & French GDP data and Norwegian unemployment will take focus on the data front. ECB Pres Lagarde will speak after Eurogroup meeting.