NAB – The Morning Call · War talk rocks markets, all eyes on the East

War talk rocks markets, all eyes on the East

Monday 14th February 2022

There was a swift response on Friday to speculation that Putin would launch an attack on Ukraine as soon as this week. The US dollar gained ground at the expense of the Euro, whilst bond yields, which had risen on the upside inflation surprise on Thursday, came falling down again. NAB’s Tapas Strickland says more negative new over Ukraine will add to the strength of the US dollar, but similarly, markets could slowly reverse their positions if weeks go by without any resolution. Meanwhile, second guessing the actions of central banks remains a focus on markets, with Aussie bond yields shooting up on Friday as Philip Lowe suggested a rate rise this year was “consistent with their central scenario”.

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