After hopes of an easing in Ukraine tensions, the Euro gains

On Wednesday, the euro maintained overnight gains in early Asian trading. It jumped on reports that some Russian forces were leaving the Ukraine border. However, tensions remain high and the currency has not made further progress.

After hopes of an easing in Ukraine tensions, the Euro gains

On Tuesday, the Russian defense ministry published footage showing it returning troops to their base following exercises. However, President Joe Biden stated that the United States has not verified this move.

In addition, Ukraine announced hours after Moscow made the announcement that its online networks for its defense ministry and two banks had been hacked by hackers.

After a 0.45% increase the previous day, the common European currency was steady at $1.1356 Wednesday.

Following the reports, shares around the globe rebounded. MSCI's gauge for global equities closed higher by 1.34%. The Australian dollar rose 0.37% on Tuesday and then stabilized. This is a common sign that the Australian dollar is sensitive to risk sentiment.

The safe-haven yen, however, has softened slightly to 115.65/dollar, after briefly touching 114.99 Monday when tensions were higher.

The dollar index, which measures the greenback relative to six major peers, fell on Tuesday to 96.008.

Analysts said that the dollar would not fall far enough.

In a morning note to clients, Westpac analysts stated that the greenback fell overnight due to the Ukraine geopolitical risks premium. However, expectations of an aggressive Fed hiking cycle should maintain a base for (dollar index).

The Fed is expected to raise interest rates at its March meeting. This will likely kick off a rapid program of increases.

The yields of benchmark bonds in the United States were also higher due to higher producer price index data.

After falling below 2% this week, the yield on 10-year Treasury Notes was back at its two-year high of 2.0329.

After minutes of the Fed's February policy conference, the dollar and U.S. rates may move later in today. Investors want to know if the Fed discussed the possibility of a rate increase of 50 basis points.

Fed officials are arguing publicly over how aggressively they should raise rates at their March meeting. James Bullard, the President of St. Louis Fed, reiterated Monday that he supports a faster pace for Fed rate increases.

Other Fed officials were less likely to agree to a half point hike or were concerned about it causing trouble.

Rate increases are also helping the British pound, currently at $1.3543

A Reuters poll of economists found that nearly two-thirds of respondents expect the Bank of England (BoE) to raise rates 25 basis points more at its March meeting. This would mark the Bank's third consecutive rate increase at its March meeting since 1997.