What you should know on Friday, February 18:
The conflict between Ukraine and Russia continued to dominate the headlines and fueled the demand for safe-haven assets, although speculative interest remained away from the dollar. Major pairs were stable within familiar levels after both countries blamed each other for some shelling that took place on Thursday morning in Donbass territory.
The situation escalated as the day wore on, resulting in diplomatic talks breaking down. Western nations believe that Russia is not only not withdrawing but preparing for an invasion. Russia expelled US officials from its embassy and accused Washington of ignoring its security demands, while US President Joe Biden accused Moscow of creating drama to justify an invasion.
In addition, the US Secretary of Defense reported that Russian forces are approaching the Ukrainian border in the meantime. The US ambassador to the UN noted: “The evidence on the ground is that Russia is moving towards an imminent invasion. This is a crucial moment.”
Gold benefited the most from the risk-off environment, trading at its highest level since June 2021 at around $1,900.00 troy ou e. GBP/USD managed to extend gains beyond the 1.3600 level, but EUR/USD remains stuck around 1.1350.
The CHF and JPY hit fresh weekly highs against their US rival amid safety demand, while commodity-linked currencies hovered around their opening levels.
Crude oil prices ticked lower, dragged down by the dour tone in stocks, with WTI trading around $91.40 a barrel.
Asian and European stocks closed mixed, but US indices remain bearish ahead of the close. Government bond yields, on the other hand, fell amid higher demand for bonds.
Source: Fx Street
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