|

Breaking: Ukraine declares State of Emergency (Also rumours Russia military action could begin 4am local time)

Ukraine declares the State of Emergency that markets had been waiting for.

Markets are in a tailspin of risk-off with the yen benefitting and AUD pressured to fresh risk-off lows at 0.7221.

There are also rumours that Russia's military action could begin at 4 am local time (please note, this is not fact-checked but only a market rumour at the time of writing).

In the latest development in the Ukraine crisis, following the news that Donetsk and Luhansk had asked Russia for military aid, requests that were deemed in markets to be the latest (possibly final) pretext that Russia could use to launch a full attack on Ukraine, the nation has declared the State of Emergency. 

Meanwhile, crossing the Twitter feeds, an unverified rumour from Luke Harding, a journalist at the Guardian and author of the book Shadow State, tweeted the following:

The tweet was picked up by a reputable speciality Squawk service, but again, it must be stressed, this is unverified and by no means has it been announced by any nation.  However, the build-up to this has not been promising. With Russian threat growing, Ukraine's president Volodymyr Zelenskyy has been pleading for peace. He said he asked for a call with Vladimir Putin but the Kremlin didn't respond.

“The people of Ukraine and the government of Ukraine want peace,” he said in Russian, ''but if the nation comes under an attack, “we will fight back.”

Forex market implications

Meanwhile, in the forex space, bears are knocking on the door of 83.00 the figure in AUD/JPY, having already marked it down to a low of 82.98 bid so far. 

USD/JPY is playing out as earlier forecasted:

The price action on the hourly time frame is making for a bearish structure, confirming the bias:

Global equities and the benchmarks/futures in Asia are following the lead from Wall Street:

The Nikkei continuous front-month contract is down some 0.15% at the time of writing, pre cash.

Gold is edging higher towards daily highs of $1,916.52, XAU/USD $1,911.61, so far. 

Author

FXStreet Team

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

More from FXStreet Team
Share:

Editor's Picks

GBP/USD treads water just below 1.3300

GBP/USD alternates gains with losses just below 1.3300 the figure on Tuesday. Indeed, Cable struggles to build recovery momentum as the Greenback benefits from a cautious market mood ahead of the Fed’s meeting on Wednesday and the BoE’s gathering on Thursday.

EUR/USD turns positive past 1.1370

EUR/USD rebounds from earlier multi-week lows and flirts with the 1.1380 zone, up marginally for the day on Tuesday. Uncertainty surrounding the US-Iran conflict weighs on risk sentiment and caps the pair’s upside, while investors avoid taking large positions ahead of the highly anticipated Fed meeting on Wednesday.

Gold closes in on $4,000 ahead of FOMC decision

Gold (XAU/USD) maintains its offered on Tuesday and declines toward the $4,000 psychological level. This follows the previous day's failure to find acceptance above the $4,100 mark and suggests that the path of least resistance for the bullion remains to the downside amid a bullish US Dollar (USD), which draws support from escalating geopolitical tensions ahead of the cricital FOMC meeting.

Bitcoin slips below $64,000 as risk-off sentiment grips markets
Bitcoin (BTC) is extending its correction, trading below $64,000 at the time of writing on Tuesday after losses of over 2.5% the previous day. Institutional demand shows early signs of weakness, with spot Exchange Traded Funds (ETFs) recording a mild outflow on Monday, marking three consecutive days of withdrawals.
Indian Rupee outlook: Downtrend set to persist – Just at a slower pace
The Indian Rupee just endured its most brutal six-month stretch in years, battered by a perfect storm of global shocks. From United States (US)-India trade uncertainty to surging Oil prices and the significant outflow of Foreign Institutional Investment (FII) from the Indian stock market, every event brought nothing but pain for the Indian currency.
US Dollar mid-year outlook: Exceptional currency, exceptional risks?
The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.