Nuclear war is the worst-case scenario but in the case of anything else, it's time to revisit the notion of buying value and selling hysteria. *wink* *wink*
The market is nervous as the Russia-Ukraine war drags on and we're seeing more significant sanctions start to kick into gear against Russia. The longer the struggle seems to be in Russia trying to take control of Ukraine (either military or dialogue-wise), the more protracted the risks are to this whole ordeal.
Today's gap lower in risk trades are a testament to that and though we have seen USD/JPY close its earlier gap, there are still notable downside for commodity currencies so far today.
AUD/USD is down 0.7% to 0.7185, NZD/USD down 0.7% to 0.6685, and USD/CAD up 0.8% to 1.2805 currently. Meanwhile, the euro is hit the hardest with EUR/USD down 120 pips to 1.1147 ahead of European morning trade.
Elsewhere, gold is up 1.3% to $1,911 with WTI crude up over 5.6% to $94.90. Looking at equities, S&P 500 futures are down 2.2%, Nasdaq futures down 2.4%, and Dow futures down 1.6% - largely erasing Friday's decline.
