Forex Today: Dollar on the rise amid mounting tensions with Russia

Valeria Bednarik FXStreet

What you need to take care of on Tuesday, March 15:

Market players tried to be optimistic about a diplomatic solution to the Russia-Ukraine conflict but were unable to do so. The positive sentiment diluted as the day went by, with Wall Street ending the day in the red after a strong opening.

The latest round of peace talks was paused, according to Ukraine’s negotiator Mikhail Podolyak, and will resume on Tuesday. A Kremlin spokesperson noted that “all the plans of Russia in Ukraine will be fulfilled in full and in the time frames outlined.” Also, news hinted that Russia may halt wheat, corn, rye and barley exports, while Moscow and Belarus will stop paying for energy supply 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 US, on the other hand, reported to its NATO allies that China is willing to provide military and economic support to Russia.

The greenback is up against most major rivals, although EUR/USD is marginally higher for the day, trading at around 1.0960. The GBP/USD pair pressures the 1.3000 threshold after reaching a fresh multi-month low of 1.3008.

Commodities edged lower, with gold falling down to $1,949.57 a troy ounce and finishing the day nearby. Crude oil prices were down, with WTI now trading at around $101.40 a barrel.

The risk-averse sentiment and easing gold and oil prices undermined demand for commodity-linked currencies. The AUD/USD pair pierced the 0.7200 level, while USD/CAD trades at around 1.2820.

The USD advanced against safe-haven rivals on the back of soaring US government bond yields. The yield on the 10-year Treasury note peaked at 2.145% and currently hovers around 2.13%. The USD/JPY pair trades at around 118.10, its highest since January 2017.

Top 3 Altcoins to Watch: XinFin, KuCoin, and TheGraph

Like this article? Help us with some feedback by answering this survey:

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD tests 1.1800 barrier above 50-day EMA

EUR/USD gains ground after three days of losses, trading around 1.1790 during the Asian hours on Thursday. The 14-day Relative Strength Index momentum indicator at 47 (neutral) reflects easing momentum. The RSI below 50 keeps momentum balanced and could limit follow-through.

GBP/USD struggles near four-week low vs. USD, below 1.3500 amid BoE rate cut bets

The GBP/USD pair is seen consolidating its weekly losses registered over the past three days and oscillating in a narrow range near a four-week trough, touched during the Asians session on Thursday. Spot prices currently trade just below the 1.3500 psychological mark and seem vulnerable to slide further.

Gold consolidates below $5,000 amid geopolitical risk, hawkish FOMC Minutes

Gold extends its sideways consolidative price move through the Asian session on Thursday and remains below the $5,000 psychological mark as traders seem hesitant amid mixed cues. The US Dollar preserves its strong gains to over a one-week high in the wake of somewhat hawkish Minutes of the US Federal Reserve’s January monetary policy meeting.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments. The technical outlook suggests further gains if INJ breaks above key resistance.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.