Russia-Ukraine Crisis Sentiment Sends Safe-Havens Spiralling

Updated:

Checkmark

Service for copy trading.

Checkmark

High profitable signals.

Checkmark

24/7 cryptocurrency trading.

Checkmark

10 minute setup with significant benefits.

Checkmark

79% Success rate.

Checkmark

Up to 40 trades per month.

Checkmark

Monthly subscriptions begin at £58.


Amid the worsening tensions from the ongoing Russia-Ukraine crisis, as more nations sanction Russia, the EUR/USD pair began today’s trading session lower than its Friday close of 1.1273 to open in the Asian session at 1.1122.

Market participants’ reaction to the ongoing geopolitical crisis thwarted demand for safe-haven assets and currencies like the US dollar, the Japanese yen, and the Swiss franc, as their riskier counterparts soared.

Over the weekend, world powers like the US, UK, EU, and Canada unanimously agreed to “prevent the Russian central bank from deploying its international reserves in ways that undermine the impact of our sanctions,” according to the Guardian.

The goal behind the sanctions is to starve the Russian government by crippling its assets. Meanwhile, the US imposed some additional sanctions on the European giant’s top ten financial institutions while also freezing the assets of Russian President Vladimir Putin and Russian ministers. Additionally, wealthy Russians (oligarchs) who share ties with Putin suffered a similar fate alongside a travel ban.

In other news, the Eurozone economic docket on Monday featured inflation data from Spain, with the country Harmonised Index of Consumer Prices (HICP) for February coming in at 7.5% y/y better than the 6.8% estimate. Meanwhile, the inflation rate jumped to 7.4% y/y higher than the 6.1% recorded in January.

Inflation Risks from Russia-Ukraine Crisis Yet to Be Felt in the Eurozone

The European Central Bank (ECB) recently warned that the Ukraine crisis could extend some downside risks to the Eurozone, adding that upside inflation risks have not begun to be felt. Commenting on the upcoming ECB meeting in March, analysts at Brown Brothers Harriman noted that they “expect the bank to confirm that PEPP will end as scheduled, we believe Lagarde and company will try to maintain maximum optionality to see how the situation unfolds.”

Meanwhile, US Fed speakers Bullard and Waller maintained their hawkish stances and favored a 50 basis point rate hike in the FOMC meeting scheduled for Friday.

 

You can purchase Lucky Block here. Buy LBlock

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.