Oil-Tied FX On Firmer Footing

Major commodity-tied currencies have garnered some strength on the back of firmer crude oil prices, with participants watching how Russia's invasion of Ukraine unfolds. Turkey's Foreign Minister expressed optimism about ongoing peace talks but many are doubting Russia's commitment to achieving genuine progress.

• The Swedish krona sits at the bottom of the G10 pile. It is sensitive to swings in sentiment around the war in Ukraine, owing to the perceived risk of regional contagion.
• Activity in Asia has been limited by a market holiday in Japan. Spot USD/JPY continues to trade within close proximity to its recent cycle highs.
• The PBOC set the mid-point of permitted USD/CNY trading ban more "normal" magnitudes of divergence with forecasts. Spot USD/CNH holds above neutral levels, with the prior trading day's extremes still intact.
• Worth noting that the PBOC kept the 1-Year and 5-Year Loan Prime Rates unchanged today.
• The broader data docket is fairly light during the remainder of the day, which shifts focus to central bank speak from ECB's Lagarde, Makhlouf & Nagel as well as Fed's Powell & Bostic.