White House: Will announce new sanctions on Russia on Tuesday, will coordinate with allies

Dhwani Mehta FXStreet

A senior White House official said in a statement, the US will announce new sanctions against Russia on Tuesday in response to Moscow's "decisions and actions" on Monday.

Additional takeaways

“Will coordinate with allies on the announcement.”

“Putin moving “peacekeeping forces” to Donetsk & Luhansk regions of Ukraine may not trigger "swift and severe" sanctions.”

“Russia has had forces in the Donbas for the past 8 years.”

Market reaction

The risk sentiment remains sour amid ongoing escalation between the West and Russia over a likely Ukraine invasion, as Moscow signed a decree that recognizes Donetsk and Luhansk in Eastern Ukraine as independent states.

The S&P 500 futures, the risk barometer, are losing 0.53% on the day while gold is holding moderate gains around $1,910.

Across the G10 fx space, AUD/USD is keeping its range near 0.7200, unable to sustain the bounce.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.