Here we go again. Risk is on the defensive as Russia-Ukraine tensions weigh on markets, following reports of Ukraine attacking LPR localities overnight. That is stirring the pot and saw risk trades dumped as the dollar and yen gained, though some of that has been trimmed a little as Ukraine denies the above event.
I reckon it's going to be a session filled with conflicting headlines featuring another episode of he said, she said.
We'll see what happens next but at this stage, it's pretty much anything goes. Russia could well choose to let this be a war of words or package everything into a pretext for an invasion. I would say Putin would like to keep tensions alive and high for longer to retain some flexibility but you never really know, do you?
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