[Stock FX] Deterioration of the situation in Ukraine

As of February 23, 2022, the worsening situation in Ukraine has increased the possibility of war. On the other hand, the exchange rate is such that the US dollar and the Japanese yen are sold in inverse proportion. However, there is a good chance that a war will suddenly occur in this flow and it will be rough. Keep an eye on trends in the US, Russia and the EU. Economic sanctions by the United States, the EU, and Japan are now underway, and military intervention is possible once the war begins.

Ukraine

• 21st Eastern Ukraine Pro-Russian Occupied Region Declares Independence as “People’s Republic of Lugansk” and “People’s Republic of Donetsk”
• Since last week, the battle between pro-Russian factions and Ukrainian troops has begun mainly in the eastern part.
• On the 22nd, Ukrainian President Zelensky has not recognized the independence of the “People’s Republic of Lugansk” and the “People’s Republic of Donetsk”. He complained that he violated the “Minsk Agreement” that he put together in 2015.

Russia

• 21st Approved independence of “People’s Republic of Lugansk” and “People’s Republic of Donetsk”
• 22nd Russian Senate unanimously approves Russian troops dispatched abroad
• 22nd President Putin ordered troop dispatch to eastern Ukraine
• The UN Security Council was held on the 22nd, but ended with completely parallel lines.
• Putin said on the 22nd that the Minsk agreement “no longer exists”

America

• The first economic sanctions were imposed by the United States on the 22nd, and there are also second economic sanctions.
• The UN Security Council was held on the 22nd, but ended with completely parallel lines.
• Peace talks between Russian and US foreign ministers will be canceled on the 24th
• 22nd Biden announces further economic sanctions if the invasion of Ukraine continues

G7

• On the 23rd, Japan announced that it would impose economic sanctions on Russia, and decided to suspend the issuance of government bonds and the issuance of visas.
• 22nd UK announces economic sanctions against Sberbank
• 22nd Canada bans all financial transactions with two regions, Lugansk and Donetsk, which Russia has approved as an “independent state”
• The meeting between the French and Russian Foreign Ministers scheduled for 25th was suddenly canceled.
• 22nd German Chancellor Olaf Scholz announces suspension of approval process for new gas pipeline (Nord Stream 2) with Russia

Future forecast

Russia’s presence in Ukraine means that the “era of peace”, which lasted nearly 80 years, is about to end with a clear violation of international law. In some cases, it could be a world war, so the world is in a tense state. At the moment, all peace talks have been canceled and it is about to converge or worsen.

Forex market, stock market

Currently, the US dollar and the Japanese yen are being bought against the world situation, but the situation in Ukraine is completely deteriorating. Therefore, we do not know when the market will fluctuate. Please be prepared for an emergency.