The United States said Russia has massed enough troops near Ukraine to launch a major invasion

• A Russian attack could begin any day and would likely start with an air assault
• The dollar had been trading mostly sideways when the U.S warning hit markets
• The Canadian dollar weakened as the potential for an imminent Russian attack triggered a sell-off

The dollar rose along with other safe-haven assets on Friday after the United States said Russia has massed enough troops near Ukraine to launch a major invasion. 

A Russian attack could begin any day and would likely start with an air assault, White House national security adviser Jake Sullivan told a media briefing. The dollar had been trading mostly sideways when the U.S. warning hit markets. The dollar index, a measure of the greenback against six major currencies, rose 0.258%.

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U.S crude futures jumped more than 5% to $94.66 a barrel, the highest since 2014, while gold rose more than 2% to a near two-month high at one point. The dollar's rise was due to Sullivan's comments, as well as reports that Russian President Vladimir Putin had decided to invade Ukraine, which the White House later disputed. That move up, along with moves in other safe-haven assets such as U.S. Treasuries and the Japanese yen, indicates the market is growing more and more concerned about the prospect of an invasion. 

The Japanese yen strengthened 0.63% versus the greenback at 115.29 per dollar, while the Canadian dollar weakened as the potential for an imminent Russian attack triggered a sell-off in risk-sensitive assets. Russia's currency, already lower for the day, fell further on the news. 

The rouble was last down 2.73% versus the greenback at 77.00 per dollar. Washington urged all U.S. citizens to leave the country within 48 hours. Other countries, including Britain, Japan, Latvia, Norway, and the Netherlands told their citizens to leave Ukraine immediately. 

The euro, meanwhile, weakened as markets processed the news, and was set for a weekly decline after European Central Bank President Christine Lagarde said in an interview that raising rates now would not bring down record eurozone inflation but only hurt the economy. 

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The greenback had struggled to pick a direction earlier in the day as investors digested the University of Michigan’s preliminary consumer sentiment index for February. That report found that U.S. consumer sentiment fell to its lowest level in more than a decade in early February amid expectations that inflation would continue to rise in the near term.

Economists polled by Reuters had forecast the index edging up. The market's lack of clarity as to how interest rate hikes might progress has contributed to frenzied sessions this week as the dollar remains undecided on the future. I tend to think we consolidate in the short term here and am still biased toward euro downside, dollar upside against most currencies. Wall Street tumbled and safe-havens such as U.S. Treasuries and the U.S. dollar rallied after Washington said Russia has massed enough troops near Ukraine to launch a major invasion.

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Euro

The single currency fell against the U.S Dollar as traders on edge about the prospect of war in Europe and unsettled by soaring inflation. The risk of war in Ukraine pushed the euro down on Friday and it was nursing losses well below last week's top of $1.1495. Russia could invade Ukraine at any time and might create a surprise pretext for an attack. Overall, the EUR/USD traded with a low of 1.1413 and a high of 1.1461 before closing the day around 1.1441 in the New York session.

Yen

The Japanese Yen gained after the U.S said Russia has massed enough troops near Ukraine to launch a major invasion. A Russian attack could begin any day and would likely start with an air assault, White House national security adviser Jake told a media briefing. The dollar index, a measure of the greenback against six major currencies, rose 0.258%. Overall, the USD/JPY traded with a low of 114.89 and a high of 115.36 before closing the day around 115.09 in the U.S session.

British Pound

The British Pound held its ground on Friday and posted a second consecutive weekly gain as expectations of rising interest rates propped up the currency. The pound’s strength against the dollar was in stark contrast to the greenback’s other major rivals, which weakened in early trading amid rising expectations of U.S interest rate increases in the coming weeks. Overall, the GBP/USD traded with a low of 1.3488 and a high of 1.3549 before closing the day at 1.3534 in the New York session.

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Canadian Dollar

The Canadian Dollar weakened, giving back some of this week's gains, as the potential for an imminent Russian attack on Ukraine triggered a selloff in risk-sensitive assets. Wall Street tumbled and safe-havens such as U.S Treasuries and the U.S dollar rallied after Washington said Russia has massed enough troops near Ukraine to launch a major invasion. Overall, USD/CAD traded with a low of 1.2655 and a high of 1.2754 before closing the day at 1.2664 in the New York session.

Australian Dollar

The Australian Dollar left drifting as geopolitical concerns over Ukraine offset further gains in global commodity prices as inflation becomes more broad-based. The Aussie was also under pressure given the Reserve Bank of Australia (RBA) was showing little urgency to tighten, while the market was rife with speculation the U.S Federal Reserve could hike by 50 basis points next month. 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.

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​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 0.15%.

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 0.01%.

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 0.63%.

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 0.17%.

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 0.14%.

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