Concerns over tensions in Ukraine continued until the European session which saw a fall in European stock markets and also dragged most major currencies lower.
The warning issued by the United States that Russia would invade Ukraine has put financial markets on high alert, prompting investors to turn to safe-haven holdings.
The US dollar acting as a safe-haven in this situation has been in demand from investors, leading it to trade higher earlier in the week than its other major rivals.
In the latest development, German Chancellor Olaf Scholz is reportedly set to travel to Kiev on Monday and to Moscow on Tuesday to prevent an outbreak of war. At the same time, Ukraine will also ask to meet Russia.
Examining the movement of risk -sensitive currencies in the European session, the Aussie and New Zealand dollars continued to trade lower. The Aussie dollar continues to be under pressure following the Australian Central Bank (RBA) which is still seen as dovish to carry out tightening.
Meanwhile, negative sentiment in the market continued to push euro trading to a one -week low which saw it struggle to defend the 1.1300 price early in the session.
Investors will look forward to a speech from European Central Bank (ECB) President Christine Lagarde at the New York session, to seek further clarification on her views on current monetary policy and growing inflationary pressures.
In addition, the pound also extended its decline lower around the price of 1.3500 against the US dollar. Investors are now focusing on UK jobs data to be published on Tuesday.
