GERMANY: Incoming Gov't Considering Russian Asset Seizure - Swiss Media
The future governing coalition in Germany is " preparing a policy shift" on €210 billion in Russian foreign currency reserves in the EU, Swiss newspaper Finanz und Wirtschaft reports. While passing of the potential plans remains uncertain, they could be seen as a signal of incoming tightening of the German stance re Russia.
- "In response to an inquiry from «Finanz und Wirtschaft,» it appears the coalition plans go far beyond the current use of the frozen funds. When asked whether the new government might consider confiscation of Russian state assets permissible, a CDU spokesperson said: 'The question of handling Russian state assets belongs at the EU level. The new federal government will engage there and, together with our partners, explore possibilities more openly and actively than before to use these financial resources to strengthen Ukraine.'"
- This would be a more aggressive approach than previous headlines filtering through from France suggested: "At the end of March, French President Emmanuel Macron said that the frozen assets belong to Russia and could be part of a reconstruction fund. They should be used as part of a peace agreement – thus with the Kremlin’s consent. The funds could then serve as security, for example, if Russia violates the agreement and fails to fully pay compensation for war damages"
- Link to the article here.
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CANADA PM CARNEY TO MEET GOVERNOR GENERAL AT NOON
- CANADA PM CARNEY TO MEET GOVERNOR GENERAL AT NOON
- CARNEY EXPECTED TO SEEK ELECTION
US TSYS: Available "Extraordinary Measures" Pick Up Slightly From Lows
Treasury has $163B of "extraordinary measures" remaining for authorities to use to fend off hitting the debt limit as of March 19, per the latest release of Treasury data. That's up from $86B on Mar 17 and a low of $34B on Feb 24.
- That's a little under half of the $377B in measures available to Treasury, with most of the amount remaining ($143B) coming from the so-called "G Fund".
- This headroom is in addition to $416B in cash left in the TGA, at last count.
- We haven't seen any changes recently to "x-dates" by when Treasury will run out of cash until the debt limit is lifted.
- Consensus still centers around late July/early August, but much will depend on April's major mid-month tax take. Treasury wrote to Congress last week that they would be able to provide an update on the x-date in the first half of May, after the conclusion of tax season.
USDCAD TECHS: Short-Term Outlook Remains Bullish
- RES 4: 1.4793 High Feb 3 and key resistance
- RES 3: 1.4700 Round number resistance
- RES 2: 1.4641 76.4% retracement of the Feb 3 - 14 bear leg
- RES 1: 1.4452/4543 High Mar 13 / 4 and a bull trigger
- PRICE: 1.4345 @ 16:27 GMT Mar 21
- SUP 1: 1.4242 Low Mar 6 and a key near-term support
- SUP 2: 1.4151/4107 Low Feb 14 / 50.0% of Sep 25 - Feb 3 bull run
- SUP 3: 1.4011 Low Dec 5 ‘24
- SUP 4: 1.3944 61.8% retracement of the Sep 25 ‘24 - Feb 3 bull cycle
USDCAD is trading closer to its recent lows. The bull cycle that started Feb 14 remains intact and moving average studies remain in a bull-mode position, highlighting a dominant uptrend. Note that the latest pullback has exposed a near-term key support at 1.4242, the Mar 6 low. Clearance of this level would undermine the bull theme and instead highlight potential for a test of 1.4151, the Feb 14 low and a bear trigger. The bull trigger is 1.4543, the Mar 4 high.
