Risk Aversion Takes Hold On Fears Of Imminent Russian Attack

Reports flagging the potential for a Russian military incursion into Ukraine have frayed the nerves, with U.S. Secretary of State Blinken noting that Moscow is fully prepared to launch an attack by the end of tonight. Ukrainian President Zelensky said that the Kremlin did not respond to his phone call request, while Russia has issued a notice closing its airspace along the border with Ukraine for all civilian flights until May 18.

• Deepening geopolitical tension in Eastern Europe has rendered safe havens appealing in early Asia-Pac trade. The JPY leads gains as Japanese markets reopened after a holiday, with USD and CHF closely behind.
• High-beta currencies have come under pressure amid renewed weakness in equity markets, although concerns over potential aggravation of the situation in eastern Europe doesn't seem to have filtered through into the RUB.
• The second reading of U.S. GDP, local jobless claims and new home sales headline the data docket today. Comments are due from Fed's Daly, Mester, Bostic & Barkin, BoE's Bailey, Broadbent & Pill, ECB's Schnabel & Riksbank's Jansson.