What you need to take care of on Friday, February 25:
Panic took over financial markets as Russia launched a military attack on Ukraine. Moscow attacked not only the Donbass region but got near Kyiv during US trading hours. Russia ignores global sanctions and seems determined to take full control of Ukraine.
A nuclear waste storage facility in Chernobyl, Ukraine, was destroyed after Russian forces entered and fighting broke out, an advisor to the Ukrainian Interior Ministry told NBC. The advisor warned that radioactive dust could cover the territories of Ukraine, Belarus and the EU.
Russian President Vladimir Putin said that they had no other chance but to act differently, as all previous attempts to change the situation were fruitless. He added that Russia remains a part of the global economy and do not plan to damage the system they belong to.
However, the whole world condemned the situation and announced sanctions on Russia. The UK has been among the most aggressive, as UK Prime Minister Boris Johnson pushed for Russia to be ejected from SWIFT system. Earlier in the day, Johnson said that the UK would provide Ukraine defensive weaponry while doing everything to keep Britain safe. Additionally, he said that the kingdom will agree with allies “on a massive package of economic sanctions designed in time to hobble the Russian economy.”
NATO Secretary General Jens Stoltenberg said on Thursday that Russia is using force to try to rewrite history, as reported by Reuters. Among other things, he said that the organism will deploy “capabilities and forces including NATO Response Force," adding that they would do whatever is necessary to shield the alliance from aggression.
French President Emmanuel Macron said that Russia’s deliberate choice to attack Ukraine violated UN rules, adding that France stands beside Ukraine and that the country will respond “without weakness” to this act of war. Finally, he noted that sanctions against Russia would factor in the energy sector.
US President Joe Biden announced a series of sanctions on Russian institutions and people, aimed to maximize the long-term impact on Russia and minimize the effect on the rest of the world. Finally, the European Council agreed on further restrictive measures that will impose “massive and severe consequences” on Russia for its actions.
Gold soared to $1.974.40 a troy ounce, its highest since September 2020. The metal pulled back ad plummeted to the current $1,880.00 price zone during US trading hours, where it currently stands, as market players unwind fear-related trades following US President Biden's statement.
Meanwhile, Federal Reserve Raphael Bostic noted that Fed policy is poised to return to a more normalized stance. Among other things, he added that he is “very open” to going for more than 3 rate hikes this year.
EUR/USD recovered from a fresh 2022 low of 1.1105 to currently trade around 1.1200. The GBP/USD pair stands at around 1.3400, while commodity-linked currencies also shed part of their intraday gains
Crude oil prices also dipped into negative territory after reaching multi-year highs. WTI traded as high as $100.50 a barrel, now changing hands at around $92.20.
Wall Street trimmed most of its intraday losses, trading mixed ahead of the close. The Nasdaq Composite is the best performer, up over 200 points after shedding roughly 4% at the beginning of the day.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.