Dollar Rises as Russia Escalates Missile Strikes on Ukraine After Bridge Attack

Dollar Rises as Russia Escalates Missile Strikes on Ukraine After Bridge Attack
Dollar Rises as Russia Escalates Missile Strikes on Ukraine After Bridge Attack
© Reuters.

By Geoffrey Smith — The dollar strengthened in early dealings in Europe on Monday, after Russia launched a barrage of missile attacks against Ukrainian cities including the capital Kyiv, in an apparent response to the attack on the Kerch Strait bridge over the weekend.

By 03:35 ET (07:35 GMT) the , which tracks the greenback against a basket of six developed economy currencies, was up 0.12% at 112.92, profiting from a modest ‘safe haven’ bid as events point to a further escalation of a conflict that has weighed on European currencies since February.

Missile attacks were reported to have hit largely civilian targets, including Kyiv’s Shevchenko Park, the city’s largest and most popular public park. The attacks follow the appointment of a new commander for what Russia calls a ‘special military operation’, Syria veteran Sergey Surovikin.

The dollar was still supported by Friday’s September labor market report from the U.S., which showed still growing at a solid pace and provided no real evidence to support hopes of an early end to the Federal Reserve’s cycle of increases. The bond market was quiet, however, with both the short and long end of the Treasury yield curve effectively unchanged from Friday’s close.

The was in focus in early trade after the Bank of England said it will replace the emergency auctions of Gilt purchases that it launched after the poorly received ‘mini-budget’ of the new government with a new series of lending operations. The Bank has only used around 12% of the capacity of the auctions since the mini-budget but has raised the daily limit for their final week to keep a firm lid on market volatility.

The pound rose 0.2% to $1.1103.

The , by contrast, slipped 0.1% to $0.9729, against a backdrop of lingering disappointment at the lack of progress made by EU leaders in agreeing how to manage the continent’s fuel needs over the coming winter. Extensive talks at a meeting in Prague on Friday on proposals for a cap on the wholesale price of gas yielded no firm results.

Later Monday, there will be speeches from both ends of the European Central Bank’s policymaking spectrum, with both chief economist and Bundesbank President due to speak. In the U.S., Fed Vice-Chair and Chicago Fed President are the highlights.

Leave a Reply

Your email address will not be published. Required fields are marked *

New Brokers
2.8 rating
Buy & sell Crypto in minutes
3.0 rating
Note: Investing involves risks. You can lose your deposit. We advise you to only invest in financial products which match your knowledge and experience.
2.0 rating
Interactive Brokers attracts active traders with low per-share pricing, an advanced trading platform.
4.3 rating
eToro is the world’s leading social trading platform, with thousands of options for traders and investors.
Risk Warning: The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory or other services by AdonFinance. In addition, the content of the website offers no opinion with respect to the suitability of any security or any specific investment. Trading foreign exchange, stocks, cryptocurrencies and commodities is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against traders. Before any investment with any broker you need to carefully consider your targets, previous experience, and risk level. Forex trading can result in the loss of your money, as a result, you are expressly cautioned that you should never invest or trade with money that you cannot afford to lose. For the avoidance of doubt, AdonFinance's service provides Brokers reviews in the Financial market. AdonFinance, its subsidiaries, agents or affiliates will assume no responsibility whatsoever for your trading activity. © Copyright 2021 AdonFinance