Risky sentiment continued to put the market in a precarious position as euro trading hovered around lows following pressure from the US dollar king who was in demand by investors as a safe-haven.
The euro traded around 1.1300 at the start of the Asian session after slipping lower in the previous session. While the yen continued to perform at its best in a week.
Movements in the currency market are seen more cautiously with a fully directed focus on new developments in tensions between Russia and Ukraine.
The actions of Ukrainian President Volodymyr Zelenskiy caused uneasiness for investors after he ordered his citizens to fly the national flag and sing the national anthem on February 16, the date claimed by Western media that Russia would launch an attack. He named the day ‘Unity Day’.
Aside from the geopolitical crisis, Fed policymakers have begun debating how they will initiate the next interest rate hike at a policy meeting in March.
James Bullard, who last week had proposed a big increase of 50 basis points had reiterated that statement in his speech at the New York session. While other policymakers are still cautious in their statements.
Tensions in Ukraine and a more aggressive outlook by the Fed, are seen as supporters for greenback dollar trading this week.
Investors ’next focus is targeted at the release of the US producer price index (PPI) tonight which is expected to continue to show improvement in January.
