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Risk Ticks Higher as Ukraine Aide Says Ready for Diplomatic Solution

CROSS ASSET
  • Risk assets edge higher on the back of Bloomberg headlines citing an Aide to the Ukrainian President Zelensky as stating that Ukraine is ready for a diplomatic solution, and neutrality can be discussed, but would need security guarantees.
  • These headlines coming via Ukraine's deputy chief of staff Zhovkva, who adds: WON'T TRADE `SINGLE INCH' OF TERRITORIES - may clash with Russia's demands for an independent LPR, DPR and a Russian Crimea.
  • EUR/USD edges to fresh session highs of 1.1049, with Bund futures under pressure as well as oil prices. Price action moderates as further comments filter through, with the demands from Kyiv still clearly clashing with Kremlin terms.
  • Recall the Russian foreign minister Lavrov is due to be meeting with his Ukrainian counterpart in Turkey today/tomorrow - on the sidelines of a broader meeting.

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