Forex Today – Asian Session: Putin Escalates War Despite Peace Talks

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What you should know on Tuesday, March 1:

Risk-related sentiment remained the main driver of the market. Safe-haven assets rose at the weekly open amid the escalation of the war between Russia and Ukraine. Sentiment temporarily improved early in the US session amid peace talks. However, such talks ended without decisions. A new round of talks will take place in a few days, but hostilities resumed when Moscow bombed civilian buildings near Kiev.

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President Putin ignores sanctions and financial chaos: Russia imposes a halt on security payments from foreigners. Local stock markets will remain closed on Tuesday, while the RUB plunged to record lows against the dollar.

Western nations are also stepping up their preparations for war in the Baltic. Germany and Croatia, among other countries, announced defensive preparations.

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ECB President Christine Lagarde tweeted: “I reiterate that the ECB will implement the sanctions decided by the EU, and we stand ready to do whatever is necessary within our mandate to ensure price stability and financial stability.”

The EUR/USD pair flirted with the yearly low before jumping out, now trading around the 1.1200 level. GBP/USD made a modest intraday gain and traded around 1.3400. Commodity-linked currencies were among the best performers against the dollar, with AUD/USD trading around 0.7250 and USD/CAD in the 1.2690 price zone. The Swiss franc and JPY rose strongly against the dollar.

Spot gold is trading around $1,900 a troy ounce, while WTI is trading around $95.30 a barrel, both above Friday’s close.

Higher demand for government bonds dragged yields lower. Meanwhile, most global indices were trading in the red.

Source: Fx Street

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