President Joe Biden said that a Russian attack on Ukraine remains a possibility

• The U.S dollar was down as investors absorbed the latest news on the Russia-Ukraine standoff
• Concern over the standoff has driven gains recently in the safe-haven dollar
• The euro's rally from the previous day petered out in today’s Asian trading session

The U.S dollar was down slightly yesterday as investors absorbed the latest news on the Russia-Ukraine standoff, with the dollar index briefly paring some of its losses late in the day after President Joe Biden said that a Russian attack on Ukraine remains a possibility.

Biden, in nationally televised remarks, also said reports that some Russian forces have moved away from the Ukraine border have not yet been verified by the United States. Earlier, Russia said that some of its troops were returning to base after exercises near Ukraine, news that appeared to reduce investor anxiety over the crisis in the region. 

Economic Calendar

Concern over the standoff has driven gains recently in the safe-haven dollar, but investors mostly took a risk-on view yesterday, with U.S. stocks rising. The U.S dollar index was last down 0.3%, while the euro was up 0.5% against the dollar at $1.1358. The U.S dollar was up 0.1% against the yen at 115.64 and up 0.1% against the Swiss franc at 0.9255. Biden also said the U.S is "not seeking direct confrontation with Russia" but that if Russia were to attack Americans in Ukraine, "We will respond forcefully." 

Market participants will also remain alert to any comments this week from U.S. Federal Reserve officials on the interest rate hike outlook. Fed officials continue to spar over how aggressively to begin raising rates at their March meeting, with St. Louis Fed President James Bullard on Monday reiterating calls for a faster pace of Fed rate hikes. Other Fed officials have been less willing to commit to a half-point hike or were even concerned it could cause trouble. 

The ECB has joined its central bank peers in signaling a hawkish turn in its monetary policy at a meeting this month. Investors also assessed data showing U.S producer prices increased by the most in eight months in January.

What is Negative Balance Protection?

Euro

The single currency rally from the previous day petered out in Asia today, though it held its overnight gains, as optimism after reports that some Russian forces had moved away from the Ukraine border, was tempered by news of a cyberattack. The greenback "shed ground overnight as the Ukraine geopolitical risk premium came out of markets. Overall, the EUR/USD traded with a low of 1.1278 and a high of 1.1367 before closing the day around 1.1305 in the New York session.

Yen

The Japanese Yen steadied as investors absorbed the latest news on the Russia-Ukraine standoff, with the dollar index briefly paring some of its losses after President said that a Russian attack on Ukraine remains a possibility. Biden, in nationally televised remarks, also said reports that some Russian forces have moved away from the Ukraine border. Overall, the USD/JPY traded with a low of 114.99 and a high of 115.73 before closing the day around 115.52 in the U.S session.

British Pound

The British Pound weakened against the dollar and the euro yesterday, as the single currency firmed on reports that Russia was returning some troops near Ukraine to their bases. Data showed that annual pay growth in Britain in the final quarter of 2021 edged up to 4.3% from 4.2% in the three months to November. Overall, the GBP/USD traded with a low of 1.3493 and a high of 1.3570 before closing the day at 1.3525 in the New York session.

Canadian Dollar

The Canadian Dollar was little changed against its U.S counterpart yesterday as investors weighed tentative signs of easing tension in Ukraine and looked ahead to key Canadian inflation data. Oil has been supported in recent weeks by the prospect of a disruption in Russian energy supplies. Domestic data showed that home prices jumped 4.9% in January. Overall, USD/CAD traded with a low of 1.2717 and a high of 1.2781 before closing the day at 1.2727 in the New York session.

Australian Dollar

The Australian Dollar edged higher today as markets chose to focus on hopeful signs for Ukraine, while bonds were battered by another surprisingly strong reading on U.S inflationary pressures. The improvement in risk sentiment hit bonds hard, as did a high reading of U.S producer prices that only added to talk of a half-point rate increase. Overall, AUD/USD traded with a low of 0.7169 and a high of 0.7228 before closing the day at 0.7171 in the New York session.

What is Forex Trading?

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also issuing a bearish stance. The Relative Strength Index is above 41 and lies below the neutral zone. In general, the pair has lost 0.21%.

Sterling-Yen

Currently, GBP/JPY is trading below 14 and above 50, 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 45 reading and lies below the neutral zone. On the whole, the pair has lost 0.08%.

Aussie-Yen

Currently, the cross is trading above 14, 50 and below 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 43 reading and lies below the neutral region. In general, the pair has gained 0.06%.

Euro-Sterling

This cross is currently trading below 14, 50 and below 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 44 and lies above the neutral region. Overall, the pair has lost 0.12%.

Sterling-Swiss

This cross is trading above 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 46 and lies above the neutral region. In general, the pair has lost 0.21%.

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