All eyes on today’s Ukraine-Russia talks in Turkey

GBP

On a day void of any significant market moving data, Sterling fell against the euro and made a minimal recovery against the US dollar on Wednesday. Investors are eyeing peace talks scheduled to take place today in Turkey between Russia and Ukraine. With market sentiment currently the driving force for currency markets, news that the Ukrainian Foreign Minister Dmytro Kuleba and his Russian counterpart Sergei Lavrov will hold face to face talks for the first time since the Russian invasion of Ukraine have been welcomed. As a result, yesterday saw risk-sentiment shifting to risk-on. The move in market sentiment is at the detriment of Sterling which, having opened the trading week at five year highs, is now trading at its lowest level against the euro for two weeks.

Key announcements

13:45 – EUR – ECB interest rate decision – rates expected to remain unchanged
14:30 – USD – Consumer Price Index ex Food and Energy m/m (Feb) – expected to fall to 0.5%
14:30 – USD – Consumer Price Index ex Food and Energy y/y (Feb) – expected to rally from 6.4% to 6%