Russia takes control of Europe’s largest nuclear plant

Last night, headlines broke confirming Russian soldiers had attacked Europe’s largest nuclear power plant. This morning, further reports suggest the facility was under Russian control. Markets remain in suspense as we enter into the weekend.

EUR

As a result of yesterday’s attacks the euro came under renewed pressure with GBP/EUR trading at post Brexit highs and EUR/USD trading at yearly lows.

On the data front, this morning sees the release of EUR Retail Sales YoY (Jan). A reading of 9 is expected, largely up from the previous reading of 2.

USD

There are now growing concerns that global inflation could continue to increase in the coming months due to the conflict. Overnight, Jerome Powell stated the Federal Reserve (Fed) are set for a 25 basis points rise at their March meeting. Will this rise be enough? We do not know, but what we do know is the US are already facing inflation levels not seen in the thirty years previous. Powell commented that it was ‘too early’ to see if the situation in Ukraine changes the Fed’s future plans, but with the current state of affairs it’s hard to see how the plans won’t be affected.

Finally, later today we’ll see the release of US Non Farm Payrolls. A reading of 400k is expected from a previous 467k.

Key announcements

10:00 – EUR – Retail Sales y/y (Jan)
13:30 – USD – Non Farm Payrolls