What you should know on Tuesday, March 15:
Market participants tried to be optimistic about a diplomatic solution to the conflict between Russia and Ukraine, but were unable to do so. The positive sentiment faded as the day wore on, with Wall Street ending the day in the red after a strong open.
The latest round of peace talks has been halted, according to Ukraine’s negotiator Mikhail Podolyak, and will resume on Tuesday. A Kremlin spokesman noted that “all Russian plans in Ukraine will be fully implemented and within the established deadlines.” In addition, the news hinted that Russia could stop exports of wheat, corn, rye and barley, while Moscow and Belarus will stop paying for energy supplies in US dollars, according to the latter’s prime minister.
At the same time, the EU Commission announced another wave of sanctions against Russian oligarchs and entities. The United States, on the other hand, has informed its NATO allies that China is willing to provide military and economic support to Russia.
The dollar is trading higher against most major rivals, although EUR/USD is slightly higher for the day, trading around 1.0960. The GBP/USD pair presses the 1.3000 level after hitting a fresh multi-month low of 1.3008.
Commodities were lower, with gold falling to $1,949.57 a troy ounce and ending the day close. Crude oil prices edged lower, with WTI now trading around $101.40 per barrel.
Risk-off sentiment and easing gold and oil prices undermined demand for commodity-linked currencies. The AUD/USD pair broke through the 0.7200 level, while the USD/CAD is trading around 1.2820.
The USD advanced against safe-haven rivals on the back of rising US government bond yields. The 10-year Treasury yield hit a high of 2.145% and is currently hovering around 2.13%. The USD/JPY pair is trading around 118.10, its highest level since January 2017.
Source: Fx Street
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