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US DOLLAR TRADES CHOPPY AS RUSSIA-UKRAINE CONCERNS WEIGH ON RISK SENTIMENT

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  • The US Dollar recovers slightly, driven by increased safe-haven flows on increasing concerns related to the war between Russia and Ukraine
  • President Vladimir Putin has signed a decree that allows the usage of nuclear weapons against Ukraine. 
  • The US Dollar index trades in the 106 area, in search of support. 

The US Dollar (USD) is entering a choppy trading pattern on the back of headlines around Russian President Vladimir Putin having signed a decree that allows the use of nuclear weapons against a non-nuclear state if it is supported by nuclear powers. The move is widely seen as a clear threat to Ukraine after the United States gave Kyiv permission to use long-range missiles to attack military targets inside Russia. 

As tensions escalate, US equities are turning red and safe havens such as the USD, the Swiss Frank (CHF) and the Japanese Yen (JPY) are seeing substantial inflows. The move is a knee-jerk reaction to the risk-on close that markets saw on Monday. 

The US economic calendar is all about US Housing data on Tuesday, with the  Building Permits and the Housing Starts data. Seeing the recent trend, expectations are that the numbers will point to a broad stabilization in the housing market.  


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