In FX, we’ve seen a classic period of ‘risk off’ trading. The US dollar has been by far and away the best performing currency, rallying sharply against pretty much everything else. Most emerging market currencies are down, with the exception of the Russian ruble, some more than 4 or 5% in the past week alone.
The major currencies have also suffered rather extraordinary sell-offs, in most cases to multi-month or multi-year lows. Two of the most notable examples, and the two currencies that we’ll focus largely on today, are the pound and the euro. EUR/USD has collapsed to its lowest level in more than 5 years, and was trading below the 1.05 level this morning. Sterling, meanwhile, is trading at its lowest level since July 2020, having now sold-off by more than 4% in a little under a week.