FOREX WEEKLY MARKET UPDATE
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🇺🇸Russia SWIFT ban
Western allies announced sweeping new sanctions against Moscow on Saturday, including blocking some banks from the SWIFT international payments system. The decision will be implemented in the coming days.
The allies, who also vowed curbs on the Russian central bank to limit its ability to support the ruble, have not yet said which banks would be targeted, but a European Union diplomat said some 70% of the Russian banking market would be affected.
🇺🇸Powell testimony
With sanctions against Russia escalating and market volatility remaining at elevated levels, testimony on the economy and monetary policy by Fed Chair Jerome Powell this week will need to reassure investors that the Fed will take steps to tackle soaring inflation as the economic outlook grows more uncertain.Powell is due to testify before the House Committee on Financial Services on Wednesday, and again before the Senate Banking Committee on Thursday.
🇺🇸Nonfarm payrolls
Economists expect Friday’s nonfarm payrolls report for February to show that the economy added 450,000 jobs with the unemployment rate expected to tick down to 3.9% and average hourly earnings forecast to rise at a 5.8% annual rate.
Ahead of the employment report, payrolls processor ADP is due to release figures on private sector hiring on Wednesday and the Labor Department is to publish the weekly report on initial jobless claims on Thursday.
🇺🇸Eurozone CPI
The Eurozone is to release what will be closely watched data on consumer price inflation on Wednesday, which is expected to reach a fresh record high of 5.3%.
The inflation data will add to the headache facing the European Central Bank ahead of its key March meeting. The ECB has said it will conduct a comprehensive assessment of the economic outlook after Russia's attack on Ukraine at its upcoming meeting.
