The DXY index is trading at 106.4 as the US dollar slowly appreciates, driven by safe-haven flows from escalating tensions of the Russia-Ukraine conflict.
The news of Ukraine deploying US ATACMS missiles for the first time during the conflict has led to Russian President Vladimir Putin lowering the restrictions of Russia’s nuclear policy. Nuclear retaliation is now possible in response to a significant conventional assault.
EURUSD moved above the 1.0600 level to 1.0610 during this morning’s session, before falling back below the level and trading at 1.0571.
The single currency stays within the 1.05-1.06 range for the past few days as market makers await progress from the growing Russia-Ukraine geopolitical tensions.
Later today ECB President Lagarde speaks at the ECB conference on financial stability and macroprudential policy.
GBPUSD broke through the 1.2700 level at the start of the day after data from the UK showed that annual CPI inflation data rose better than expected.
Prior CPI YoY data was 1.7% with a 2.2% forecast. This morning it came out at 2.3%, beating expectations and helping cable rise as much as 0.3% to 1.2714.
EURGBP dropped based on these results, lower by 0.3% to 0.8329.
RPI figures came out this morning, in line with expectations at 3.4%.
World News
USDCAD is trading around 1.3950 after touching a one-week low following higher-than-expected inflation data.
Canada’s annual inflation rate rose to 2.0%, beating the 1.9% forecast. This data has decreased investor sentiment of a larger rate cut by the BoC in December.
