Market Comment - 21st February 2022

Posted by Stuart PritchardFebruary 21, 2022

Good morning,

Headlines over the weekend were understandably focused on the weather. First storm Dudley, then Eunice and into storm Franklin today. Seems relentless. With this dominating headlines there isn't a lot further to report this morning.

GBP/EUR remains towards the top of the range but unlikely to break out at this stage. For anyone with a near term Euro requirement it could be a good time to consider locking in the current rate.

Against the Dollar it's a similar story with a significant difference. The Pound rate is off the longer term top but is bashing it's head against the shorter term high that it's hit 5 times in February before dropping back. Again it could be a good day to lock in any GBP/USD requirements.

Overall it looks like the situation in Ukraine is having some effect on the Dollar. Whilst it's a Nato led response to proceedings it's very much seen as a US v Russia situation. The French President, Emanuel Macron, has suggested a US Russia summit to try and ease tensions and work out a diplomatic outcome.

Interestingly the Swedish Krona is coming off the boil versus both the Pound and the Euro. We understand, through our partners, that there is a strong appetite from Swedish investors to buy property in Southern Europe. The rate is currently going against that type of move so again, it might be a good idea to lock in rates where possible.

Overnight the Peoples Bank of China (PBoC) kept interest rates the same at 3.7% meaning little effect on the markets.

The only big piece of scheduled data is the UK's preliminary Markit Services PMI out later this morning which indicates the strength of the UK's biggest sector. Analysts are expecting a reading of 55.5 with anything over 50 being seen as bullish or strong for the economy.

As ever we look forward to keeping you in the loop and look out for our next update.

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Today’s Economic Calendar

UK: 09:30 Preliminary Markit Services PMI

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