Yen, Franc on Hopes of Consolation in Ukraine Tensions

Ukraine Tensions: The haven yen changed course on Friday. In doing so, It gave up some of Its achievements earlier this week. Markets appear to have been watching the news of talks between Ukraine and the United States on Ukraine; This helped other risky assets, including the Austrian dollar. The dollar rose to 115.27 yen or 0.2% overall. The two-week low reached 114.78 during trading at the beginning of Friday. The yen and the Swiss franc rose this week amid high tensions across the Ukrainian border; On Friday, however, the dollar rose 0.12% against the franc.

According to the head of F.X. strategy of the National Bank of Australia, there was a bit of a reversal today. Presumably, because no real further weakness was observed in the U.S. stock markets in the afternoon; When rhetoric intensified on both sides, and big sales were at risk. Asia does not seem to have the same memorandum as the U.S. and Europe. The Australian dollar rose 0.27% on Friday, in line with the “risk” mood. S&P500 e-mini futures rose 0.7%. Spot Gold fell 0.4%.

One of the contributions to the tone change was made by the U.S. Department of State; Antony Blinken accepted the invitation to meet with the Russian Foreign Minister because Russia would not invade Ukraine. This caused some relief after an exchange of fire between Kyiv forces and pro-Russian separatists.

Although both have been at war for years; The ceasefire agreement is also periodically violated; The hostilities have renewed fears in the West about Russia’s imminent invasion. The U.S. president said Moscow was preparing an excuse to justify a possible attack. The S&P 500 experienced its most significant daily percentage drop in two weeks on Thursday. Gold jumped.

Ukraine Tension Impact

The euro continued its unchanging trading week. It was $1.1365 on Friday. The pound was supported at $1.3605 by markets investing bets on monetary tightening by the Bank of England. The central bank approach was also a part of the yen. After this week, the Bank of Japan offered to buy an unlimited number of benchmark 10-year government bonds; To highlight the costs of domestic borrowing to contain Its decision.

Markets did not aggressively test the BOJ’s 0.25% yield on bonds; However, revenue is rising for other tenors. In the U.S., meanwhile, policymakers continue to debate the public how aggressively the Federal Reserve should raise interest rates. They should also start raising 25 or 50 basis points at the March meeting.

According to the Cleveland Fed President, the federation will need to raise interest rates faster. Also, the balance sheet is shrinking more quickly than it did after the “Great Recession.” Mood risk helped Bitcoin a bit. It traded for about $40,500 ”about a two-week low after a late drop on Thursday, it lost 7.6% per day.