Commodity currencies and the pound are the laggards as we get things going in Europe. The aussie and kiwi are the main laggards with AUD/USD down 0.3% to 0.7112 and NZD/USD down 0.5% to 0.6614 on the day. EUR/USD is also down slightly to 1.1330 - its lowest since 3 February when ECB president Lagarde spoke.
It's all about the Russia and Ukraine tensions at the moment and the mood is still one filled with uncertainty. Fear is emanating across markets as nobody can say for sure what will happen next. That is keeping things on a knife's edge.
USD/JPY is also down a touch to 115.20 currently, with AUD/JPY down by 0.5% to 82.00:
The latter is testing levels below its key daily moving averages, hinting that sellers are exerting more control at the moment.
As things stand, yen pairs are arguably the most sensitive to the headlines and the charts suggest that sellers are holding the cards now as we await the next developments in Ukraine. However, in the event that tensions defuse, getting into long positions on commodity currencies against the yen would be the most profitable trade and that will be the turn to watch out for.
