US Dollar Records Fourth Consecutive Rally on Tuesday Amid Worsening Russia-Ukraine Stand-off
Login

US Dollar Records Fourth Consecutive Rally on Tuesday Amid Worsening Russia-Ukraine Stand-off

Estimated Reading Time: 2 minutes

Azeez Mustapha

Updated:


The US Dollar Index (DXY), which tracks the price action of the dollar against the top seven currencies, enjoyed some upward mobility this week amid the worsening risk-off sentiment across the financial markets.

The greenback recorded its fourth consecutive bullish day on Tuesday, as it received support from heightened geopolitical fears as military presence and tensions increased in Eastern Ukraine.

The market recorded a surge in risk-averse investor behavior after Russian President Vladimir Putin announced in a televised statement that Russia recognized the independence of Donetsk and Luhansk, as it becomes more likely that an invasion of Ukraine could happen in the near term.

That said, the dollar’s safe-haven appeal remains intact as long as the geopolitical tensions persist. Meanwhile, the US cash market appears to be returning to normalcy as yields jump in the shorter time frame, following yesterday’s President’s Day Holiday.

Moving on, market participants will likely look to the US docket on Tuesday, which includes the Consumer Confidence gauge for February and Markit’s Flash Manufacturing/Services PMIs, for near-term price action clues.

Also, the focus will be on house prices following the release of the FHFA’s House Price Index and the S&P/Case-Shiller Index.

US Dollar Receives Additional Support from Hawkish Fed Stance

The DXY has planted a solid footing above the 96.00 mark in the European session on Tuesday, as interest in safe-haven assets increased. Apart from the geopolitical developments around the Russia-Ukraine standoff, the greenback also gets some support from the corrective downtrend in US yields.

Without the ongoing risk-off sentiment, the prevalent view on the dollar was that it remains propped up by the rising inflation narrative and the possibility of a more aggressive stance by the Fed on its monetary policy.

 

You can purchase Lucky Block here. Buy LBlock

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • 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
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News