Currency Note Worldwide

Sanctions over Crimea vote lack bite

By Ricky Bean March 18th, 2014

The main focus for the markets yesterday lay with the possible implications carrying over from the weekend elections in Crimea. Since the start of the Ukraine crisis the risk sentiment in the market has been one of the key driver for many currencies, as investors have been seeking safer investments in times of turmoil.
With an internationally disputed vote in Crimea/Ukraine, the fear lay in the US and the EU imposing detrimental sanctions that would affect the financial sector and markets. As details of the discussions on sanctions leaked out into the public domain on the Monday, it became evident that the market perceived them as relatively ‘soft’. As a result, international stock markets reacted positively and some of the anti-risk driven gains from last week was reversed, as seen for the Japanese yen.

Today there are major releases from the Bank of Canada (BoC), including manufacturing sales a speech from BoC Governor Stephen Poloz. There is also data on the Japanese trade balance to be expected, which may inspire even further movement for the yen against other currencies.

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