EUR/USD offered further as NATO has officially told Reuters that an official invasion has begun
- NATO has officially told Reuters that an official invasion has begun.
- EUR/USD is printing fresh lows neat 1.1265.
EUR/USD is on the offer as markets are sold off due to the crisis over Ukraine. At the time of writing, EUR/USD is down some 0.3% near the lows of the day at 1.1265 after falling from a high of 1.1308.
In an article published during Tuesday's Asian session, If Russia does invade Ukraine, this could finally spark-off the crash 'puts' have been telegraphing, it was explained that there was an imminent threat to risk assets pertaining to the prospects of war. The sessions leading into the New York morning were, nevertheless, risk-on, as FX markets continued to price more benign outcomes.
In fact, President Putin’s recognition of new autonomous zones and the crossing of the Russian military into the Donbas region was greeted with a decline in FX options market traded volatility. However, that has all turned on its head following the latest developments over the course o the past thirteen hours of trading in financial markets.
Indeed, EUR/USD bull flag could be deceptive vs. fundamentals, that article the last paragraph summed up the situation at hand well enough.
The euro has deteriorated further reports that in the morning of New York trade, initially cited convoys of military equipment moving towards Donetsk in eastern Ukraine from the direction of the Russian Frontier. Consequently, Ukraine had planned to declare a state of emergency which was confirmed in the Asian morning and sentiment has gone downhill event since.
They were rumours of the military conflict spreading around the Twitter news feeds following the Breaking: US Blinken: Believes Russia WILL Invade Ukraine before the night is over. These rumours have now been confirmed by NATO.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
