The start of trading earlier in the week saw the market shrouded in risky sentiment following the possibility of an outbreak of war in Eastern Europe, causing the movement of most major currencies to remain restricted.
Concerns about the increasingly tense situation in Ukraine pushed the euro to depreciate below 1.1400 against the US dollar, a position it has defended since last week.
Since last week, most countries including the United States and Europe have ordered their citizens to leave Ukraine for fears that Russia will attack at any moment.
This is further reinforced by the actions of Russia conducting military exercises in neighboring Belarus even though they have previously repeatedly denied allegations of attacking Ukraine.
Currency markets, which are already volatile due to concerns over inflation risks in the United States, continued to show slow action in early week trading.
This can be seen in risk sensitive currencies, the Aussie dollar and the kiwi continue to be stuck around last week’s lows. The minutes report of the Australian Central Bank (RBA) meeting will be the main focus for Aussie dollar investors in tomorrow's Asian session.
Meanwhile, the dollar index which measures the strength of the greenback dollar against most major currencies found support to rise at around 96.00.
Meanwhile, the pound continued to move around the same price at around 1.3550 against the US dollar, with investors ’focus now shifting to the publication of UK inflation data to be released on Wednesday.
In the absence of high -impact economic data earlier this week, market movements are expected to continue to be influenced by current developments regarding Russia and Ukraine.
