Market Sells-Off On Escalating Russia-Ukraine Tensions
Risk aversion – Market sells-off.
Latest update: Russian President Vladimir Putin said he’s ordered a “special military operation” to protect the people of the Donbas separatist region, but said Russia will “aim for demilitarization and denazification of Ukraine.” Putin said Russia must “defend itself from those who took Ukraine hostage” — the U.S. and its allies who had crossed Russia’s “red line” with expansion of the NATO alliance (Source: Bloomberg).
Investors fled again into safe havens on escalating Russia-Ukraine tensions. The U.S. widened sanctions against Russia and the EU applied penalties to 23 high-level Russians. The West’s sanctions came after Vladmir Putin signed a decree officially recognizing two self-proclaimed separatist republics in eastern Ukraine. Separatist leaders in eastern Ukraine appealed to Putin for help fighting Ukrainian forces, adding into concerns that military conflicts in the region may escalate further.
The U.S. dollar benefited from its safe haven status, sending both pairs EUR/USD and GBP/USD lower. The DAX sold off, approaching the 14000-barrier this morning. Next bearish target is 13600.
EUR/USD: Below 1.1220, watch out for lower prices at around 1.11. A short-term resistance is seen at 1.1330.
GBP/USD: Below 1.3480, watch out for lower prices at around 1.34. A short-term resistance is seen at 1.36.
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