What you should know on Tuesday, March 8:
Risk aversion was once again the main driver of the market amid the Russian invasion of Ukraine. The attacks continued throughout the weekend, with multiple civilian casualties and no safe corridors open. The third round of talks ended with “small progress”, according to the Kiev representatives, although nothing that could alleviate the pressure on financial markets.
The US dollar and gold made the most of the gloomy mood, appreciating sharply. The EUR/USD pair fell to a fresh multi-month low of 1.0805 and is trading close at the end of the day. GBP/USD also collapsed, currently changing hands a handful of pips above a multi-month low of 1.3101.
XAU gold rose to $2,002.64, its highest level since August 2020, but stood at around $1,986 a troy ounce. WTI traded as high as $130.50 a barrel, pulling back to the $120 price zone where it currently stands.
The CAD and AUD started the day higher against the dollar, but lost ground as the day progressed, closing in the red. AUD/USD is trading around 0.7320, while USD/CAD is hovering around $1.2800.
Global indices fell. European indices recovered some ground before the close, but US indices posted substantial losses, with the DJIA shedding more than 600 points.
The United States is on track to ban all imports of Russian energy, breaking away from the EU with this particular sanction. President Joe Biden has anticipated the sanction and the US Congress has agreed to it. Meanwhile, the EU aims to reduce dependence on Russian gas by nearly 80% by 2022, according to Bloomberg.
Source: Fx Street
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