November 16, 2022 12:30 GMT
Greenback Resumes Weakening Trend As Risk Stabilises
- Following the late knock to risk sentiment on Tuesday following reports of a missile strike crossing the Ukrainian border into Poland, the market fallout looks more contained Wednesday with the greenback resuming its most recent weakening trend.
- The stabilisation of markets follows firm intelligence reports that the errant missile strike was Ukrainian in origin, rather than Russian, leaving the triggering of NATO's collective defence far less likely after an emergency meeting this morning. Nonetheless, the sharp moves continue to underpin the fractious nature of markets at present, with front-end implied vols generally higher across G10.
- Focus turns to the October US retail sales release, seen rising 1.0% on the month and 0.2% ex-auto and gas. Central bank speakers due Wednesday include ECB's Villeroy, Panetta and Lagarde, as well as Fed's Williams, Barr and Waller.