The euro was under pressure as intensifying Russian bombardment of Ukraine's cities

• The dollar was down on Wednesday morning in Asia, but the moves were small
• Investors flocking to safe-haven assets as Russia’s invasion into Ukraine intensified
• Investors who have assets in Russia that will be increasingly challenging to divest

The dollar was down today morning in Asia, but the moves were small. Investors flocking to safe-haven assets as Russia’s invasion into Ukraine intensified. 

The US Dollar Index that tracks the greenback against a basket of other currencies inched down 0.01%. The euro was under pressure today as intensifying Russian bombardment of Ukraine's cities and surging oil prices raised investors' concerns about a hit to Europe's economy and growth.

Economic Calendar

The common currency briefly fell below support to touch a 21-month low of $1.1090 overnight, before recovering a slightly to last trade at $1.1114. The risk is a sustained move below $1.1106 if market participants downgrade the Eurozone economic outlook. Sterling, which fell 0.7% overnight, was also squeezed at $1.3305. 

Russian forces were attempting to encircle and subdue Ukrainian cities with intensifying bombardments on Wednesday, seven days into an invasion that has sparked massive international sanctions, pushing international companies to halt sales, cut ties, and dump tens of billions of dollars worth of investments.

Best Forex Demo Account

Russia's ruble remained under pressure at 108 per dollar, having fallen as low as 120 earlier in the week. Commodity-linked currencies, such as the Australian dollar, continued to hold their own as surging prices for oil, gas, coal, and grains provided support. The Australian dollar gained 0.2% to $0.7265, also helped by data showing the Australian economy performed strongly in the fourth quarter. The Aussie is at a one-year high versus the euro. The strength of commodity prices combined with Australia's much improved current account position suggests that there is good reason to expect AUD/USD to break with its traditional role of a 'higher risk' G10 currency. 

In contrast, high energy prices have been capping gains for the safe-haven Japanese yen, despite the geopolitical turmoil, as Japan imports the bulk of its energy. It slipped back to 115.06 per dollar today. Markets were largely unmoved by U.S. President Joe Biden's State of the Union address.

CFD News: US Stock Markets

Euro

The single currency was under pressure today as intensifying Russian bombardment of Ukraine's cities and surging oil prices raised investors' concerns about a hit to Europe's economy and growth. The risk is a sustained move below $1.1106 if market participants downgrade the Eurozone economic outlook. Overall, the EUR/USD traded with a low of 1.1140 and a high of 1.1245 before closing the day around 1.1216 in the New York session.

Yen

The Japanese Yen traded lower despite the geopolitical turmoil, as Japan imports the bulk of its energy. It slipped back to 115.06 per dollar. Markets were largely unmoved by U.S President Joe Biden's State of the Union address. Biden touched on the subject of America's recent troubles with high inflation but the solutions he offered were long-term. Overall, the USD/JPY traded with a low of 114.84 and a high of 115.72 before closing the day around 114.98 in the U.S session.

Trading Signals and Trading Forecasts

British Pound

The British Pound steadied yesterday against the euro and the dollar as investors awaited speeches from Bank of England officials and watched for developments on the Russia-Ukraine crisis. Risk assets, like stocks and sterling, regained some ground after reports of ceasefire talks between Russian and Ukrainian officials began on the Belarusian border. Overall, the GBP/USD traded with a low of 1.3326 and a high of 1.3430 before closing the day at 1.3416 in the New York session.

Canadian Dollar

The Canadian Dollar edged higher as investors weighed uncertainty caused by Russia's invasion of Ukraine and domestic data showed the economy expanding at a robust pace in the fourth quarter. The Canadian economy grew 6.7% in the fourth quarter on an annualized basis, beating analyst expectations and the BoC's own forecast of 5.8%. Overall, USD/CAD traded with a low of 1.2657 and a high of 1.2807 before closing the day at 1.2672 in the New York session.

Best Forex Trading Platform

Australian Dollar

The Australian Dollar hit a one-year high on the euro today as investors were attracted by Australia's status as a net energy exporter and distance from Europe's troubles. The war in Ukraine, and the resulting spike in energy prices, have darkened the outlook for European growth and seen markets drastically scale back expectations on when the European Central Bank may tighten policy. Overall, AUD/USD traded with a low of 0.7138 and a high of 0.7235 before closing the day at 0.7231 in the New York session.

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 40 and lies below the neutral zone. In general, the pair has lost 0.96%.

Sterling-Yen

Currently, GBP/JPY is trading below 14, 50, and 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 42 reading and lies below the neutral zone. On the whole, the pair has lost 0.43%.

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 54 reading and lies above the neutral region. In general, the pair has lost 0.07%.

Euro-Sterling

This cross is currently trading above 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 46 and lies below the neutral region. Overall, the pair has lost 0.51%.

Sterling-Swiss

This cross is trading below 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 40 and lies below the neutral region. In general, the pair has lost 0.89%.

How to trade cryptocurrencies?

###

All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.