Monday Starts Optimistically

US equity futures were also stronger, while US bond yields surged to new cycle highs (2-year yield rising to 1.8%). At the same time, US oil was down to 106 USD, and precious metals also weakened, suggesting a fragile risk-on regime in the markets.

At the same time, the EURUSD pair was also bid, rising half a percent and moving closer toward the psychological 1.10 level. 

In the absence of any significant macro news today, investors will remain focused on developments coming from the Ukraine-Russia war conflict.

Later in the week, the FOMC is widely expected to raise rates as inflation skyrockets. According to the last week's US CPI release, the yearly inflation jumped to 7.9%, while the core gauge accelerated to 6.4%. 

On the other hand, the ECB will likely raise rates only once this year as the central bank continues to downplay the inflation threat, despite the price pressures being the highest in the eurozone's history.