The US dollar began to show initial strengthening in the European session trading yesterday, but failed to continue the recovery momentum in the New York session.
Investors have begun to brace themselves with a risk-off warning of a change in market sentiment as the Russia-Ukraine war tensions rise again.
It is reported that Ukraine has acted to attack Russia for the first time after the war situation had subsided before, using ATACMS missiles supplied by the United States (US).
Before the attack took place, Russian President Vladimir Putin had already approved changes to Russia's nuclear doctrine that outlined Moscow's need to use its nuclear weapons when US President Joe Biden allowed Ukraine to use theirs.
Therefore, investors are now cautiously awaiting a counterattack by Russia on Ukraine again which will have a significant impact on the market.
The reaction of Russian Foreign Minister Sergei Lavrov said he would do everything possible to prevent a nuclear war from breaking out, while showing a positive reaction to Germany's decision not to supply Ukraine with their long-range missiles.
The movement of the currency market does not show a clear pattern for now with the US dollar still not showing a jump in value.
However, safe-haven assets such as gold have started to gain traction with prices showing a positive recovery until trading resumed today (Wednesday).
Investors will take cautious steps in observing the development of the war which is now the main focus in the market.
