Ukraine Still Burns, USD/JPY Falls
Russian President Vladimir Putin accused Ukraine of committing genocide in Donbass. However, the West accuses all of these are just false claims.
The US dollar fell around 0.35 percent to around 115.00 versus the Japanese yen in Asian-European trading today (17/February) due to increased geopolitical tensions in Ukraine. The euro also fell again, while gold and crude oil prices soared as a result of the ongoing dispute.
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| USD/JPY Daily chart via TradingView |
The RIA news agency reported that Russian-backed separatists in Donbass and Luhansk, eastern Ukraine, accused Ukrainian government troops of attacking their territory with mortars. Military action using heavy weapons like this violates the agreement agreed to end the conflict several years ago.
Russian President Vladimir Putin accused Kyiv of carrying out "genocide" in Donbass. However, the West accuses all of these are just false claims.
The Ukrainian camp denied the news. The United States also warned the media that Russia could fabricate false claims about the conflict in the Donbass region, including mass graves and the production of chemical weapons in the form of photos and videos, to justify its invasion of Ukraine.
These rumors made the market turn away from news about the Fed's FOMC minutes returning to the Ukraine crisis. However, market participants seem to be relatively calm and quite skeptical of the prospect of war, as the decline in the Russian ruble is likely to be limited. The increase in bond yields - one of the safe haven assets - has also not been too significant.
"This clearly indicates that market participants remain overall optimistic that conflict will be averted," MUFG strategists said in a note to clients cited by Reuters.
"I was immediately impressed...by the degree to which the FX market believed official Russian statements, even though the Russian military has long been famous for Maskirovka (Russian military propaganda -ed), namely its ability to disguise, deceive and surprise. Maskirovka is an old tradition of the Russian army, said Ulrich Leuchtmann, Head of FX and Commodities Research at Commerzbank, "As there is still a significant risk of escalation of the conflict, those who do not have to make a living off the risk-on/risk-off moves should maintain a somewhat skeptical outlook. )."
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