Russia-Ukraine tensions continue to affect the currency market. This includes not just the traditional one but also the digital currency. The week started on a nervous note as experts eye the headlines coming from Eastern Europe.
In other words, Russia-Ukraine tensions continue to dominate the sentiments of the Currency markets. Euro and Yen hold the maximum attention. Euro is reportedly on edge while Yen is reaching closer to its two-week high value.
Forex Markets Eye Russia-Ukraine Tensions
The entire Currency market is on edge, even though a few of them are gaining from the headlines of Eastern Europe. UK based forex brokers also kept a close eye on the market as the GBP/USD pair formed a strong resistance at about 1.3610; you can also check out the forex brokers for US traders.
According to analysts at Barclays, tensions in the Eastern European region are dominating the sentiments and price actions of the currency market, which is likely to remain updated with the events at the border.
Emmanuel Macron, the President of France, announced that Joe Biden and Vladimir Putin agreed to hold a summit on the condition that Russia does not invade Ukraine.
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Following this announcement, the Euro took a lift from the ground, and the yen lost a small portion of its value against the Dollar. Yen and Swiss francs have been majorly benefited from the headlines of Eastern European tensions. Gaining or losing only a small portion, therefore, attracts the attention of the experts and analysts.
The President of the United States of America and the President of Russia have agreed to meet, but it could go all in vain if Russia proceeds with its plan of action of invading its neighbor.
Statistically speaking, Euro gained 0.12% to touch the value of $1.13340, and the Yen inched at 115.05 per dollar. This works better for Yen as it was on the path of drifting towards the value of 114.78, its 2-week low value.
These values are still in better shape, especially for the Euro that was hurt in the earlier session of trading. It works well for Yen as it is still away from its lowest mark.
The pound has drifted to $1.36000. It has majorly been driven by the tensions at the Russia-Ukraine border. Some also believe that this is the result of experts expecting a hike at the March meeting of the Bank of England.
Apart from the Eastern European tension, the Currency market is also looking at the announcement that is yet to come from the US Federal Reserve Bank. Policymakers at the US Fed are expected to hike the rate of interest, but there is no clarity about how much hikes will increase.
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An overall expectation is that the Fed will hike the rate of interest by 50 basis points instead of 25 basis points.
Cryptocurrency is showing similar trends. Bitcoin, for one, has bounced back to $39,000, up by 2%. The value is higher than its two-week low of $38,210.
