GBP/USD slipped below 1.3590 as risk-off impulse underpins USD
- GBP/USD slipped below 1.3590 on mounting tensions over the Russia-Ukraine tussle.
- The risk-off impulse is improving the safe-haven appeal.
- Britain is set to impose sanctions on Russia for breaching international law.
The GBP/USD pair fell below 1.3590 as Moscow has escalated the tensions on building up military forces in eastern Ukraine. The rising geopolitical tensions have spurred uncertainty in the market.
Russia has acquired the right to build military bases in Ukraine's two breakaway regions under new agreements with their separatist leaders, according to a copy of an agreement signed by President Vladimir Putin published on Monday, as per Reuters.
Earlier, the Kremlin labelled two regions of Ukraine: Donetsk and Lugansk as independent on Monday. The move has been retaliated by a flood of tweets from the US, UK, EU, and UN. The British foreign minister Liz Truss has said in a Twitter post that their administration will announce new sanctions on Moscow in response to their breach of international law and attack on Ukraine's sovereignty and territorial integrity.
Besides the Russian crisis risks, Investors will also keep an eye over the US Markit PMI Composite Manufacturing and Services and Consumer Confidence numbers, which are due on Tuesday. Adding to that, Tuesday’s speech from the Bank of England (BOE)’s David Ramsden will help the market participants to brainstorm over their upcoming monetary policy.
Meanwhile, the US dollar index (DXY) is eyeing to breach Monday’s high at 96.16 on a hawkish stance from the Federal Reserve (Fed)’s Bowman. This has underpinned the greenback against the pound.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
