Market sentiment rose again as concerns over Russian and Ukrainian tensions began to subside after the Russian Defense Minister announced that some military forces on the border would return to their bases.
The announcement followed a meeting between President Vladimir Putin and German Chancellor Olaf Scholz on Tuesday, during which Putin also hoped that there would be opportunities for further talks with Western countries on Moscow's security demands.
Even so, the market reaction shown was insignificant, seeing most major currencies register only modest gains. While the greenback dollar, which gained support as a safe-haven following the tensions, returned to show a decline in the New York session.
This indirectly indicates that there are still doubts about Russia's decision. As a result, investors will follow more closely the next developments in this issue.
Meanwhile, investors have been shown the US producer price index (PPI) data which recorded a higher -than -expected jump of 1.0% in January.
Meanwhile examining the movement of European currencies, the euro traded steady at around 1.1350 after gaining gains following concerns over Eastern European geopolitical issues that began to wane.
In addition, the pound traded around the same price following mixed UK jobs data in December. Investors' attention is now turning to inflation data that will be published in the European session today.
