Forex Today: Optimism surges likely to be brief-lived

Although the American dollar ended the day lower across all FX, it still managed to move versus the Japanese currency yen with USD/JPY reaching a new multi-year high at 122.40.

Forex Today: Optimism surges likely to be brief-lived

The EUR/USD pairing continues to struggle with the 1.1000 threshold and is unable extend gains beyond that level. GBP/USD closed at 1.3180. Commodity-linked currencies continue to advance against the American counterpart. The AUD/USD reached 0.7527, while the USD/CAD was at 1.2509.

The US President Joe Biden, along with European NATO counterparts, are ready for the possibility of Moscow launching an attack. They also discussed the possibility of providing assistance to Ukraine with anti-ship missiles. Additionally, they clarified that any gold transaction involving Russia’s central bank is subjected to existing sanctions. The headline helped the bright metal surge to a new weekly high of $1966.14 per troy ounce. It ended the day near.

Crude oil prices, however, have consolidated recent gains and ended the day unchanged. WTI currently trades at $113.20 per barrel.

Later, the French President Emmanuel Macron announced that no sanctions had been imposed on Russian oil, gas and coal. US President Joe Biden stated that he believes Russia should leave the G-20.

The number of coronavirus-related cases is on the rise in the UK, France, Italy and Germany. These are the top European countries that have been affected by this new wave. Despite the fact that no restrictions have been implemented, the latest restriction is being lifted.