Uncertainty about the geopolitical crisis of Russia and Ukraine has led to volatile volatility movements in currency markets during the European session.
Earlier it was reported that the Ukrainian armed forces had unleashed artillery and bomb attacks on the territory of the Luhansk People’s Republic (LPR), where Russian -backed Ukrainian rebels accused it of being carried out by government forces.
The news has sparked panic in markets during the Asian session leading to a drastic surge in safe-haven trading and the plunge of most major currencies.
Still, denials by Ukraine and mixed news of the attack caused markets to be more cautious at the opening of the European session.
Investors are now continuing to follow current developments on the situation in Ukraine where the signals of price movements are likely to be clearer in the New York session.
In the wake of sentiment seen as more risky, the US dollar is in demand as a safe-haven and is moving in tandem with the surge in gold prices which are now rising to an eight-month high.
The euro and pound continued to trade gloomily following volatile sentiment. Russia has previously threatened that they will retaliate if the UK imposes new sanctions on it in relation to the conflict with Ukraine.
While risk -sensitive currencies, the Aussie dollar and kiwi erased some of the gains made at the start of the Asian session. Earlier, the Aussie dollar has risen following positive employment data.
