Risk Gets Battered On Russian Invasion

Risk sentiment crumbled as Russia launched a full-scale invasion of Ukraine, with multiple cities across the country coming under heavy missile fire amid reports that Russian ground troops were crossing the borders from several directions. Ukraine confirmed that the Russian forces struck a number of its military targets, while Belarussian troops and Donbas separatists joint the attack. When this summary is being written, reports are doing the rounds of Russian strikes at targets as far west as near the city of Lutsk, with Ukraine's air force picking up the fight.

• The announcement of a military strike against Ukraine by Russian President was preceded by reports of explosions in several locations across Ukraine, with Russia implementing a ban on all civilian flights in airspace across its border with Ukraine.
• Heavy buying of safe haven currencies commenced as President Putin went live with his pre-recorded announcement of invasion. The yen outperformed in G10 FX space, closely followed by USD and CHF.
• Selling pressure hit Scandi FX owing to their exposure to the Russo-Ukrainian conflict. The Antipodeans lost ground on the broader flight to safety. CAD suffered the least severe wounds among high-beta currencies as crude oil prices surged.
• The Russian rouble collapsed and printed an all-time low against the greenback as Western leaders rushed to pledge announcements of a powerful barrage of sanctions. Interfax reported that trading in the rouble, stocks and futures was virtually halted after quote hit trading band limits.
• 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.