Military tension escalates

News for today, Monday, February 7

Jake Sullivan, Biden's security advisor, warned about soon Russian invasion: “Any day now, Russia could take military action against Ukraine”. US officials say, Russia has about 83 battalion tactical groups near the border of Ukraine, and 14 more are in transit. The conflict emerged as the Russian government is protesting the NATO spread towards the East. If an invasion occurs, thousands of civilians and troops could die.

Although the tension continues in the Slavic neighborhood, the Russian rouble firmed to a 3-week high against the dollar. Rising oil prices helped the currency to strengthen a lot, and the market is looking attentively at the Russian central bank waiting to hike interest rates.

China's zero-Covid strategy, an epidemiology agenda of strict lockdowns, might not work against Omicron. Despite the Chinese authoritarian approach being supremely effective in the past, the new highly contagious variant leaves no chance to restrain itself with the previous methods. Many countries have chosen a strict approach at the start of the pandemic. However, many abandon such a strategy today as a non-effective one. 

The price of Brent crude is $92.28, WTI — $90.88, GBP/USD — 1.3529, EUR/USD — 1.1421, and gold costs $1812.85 per ounce.