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22 Feb 2022
1 min read

USD/CAD On Uptrend Amid Eastern Europe Turmoil

USD/CAD Pair Uptrend

USD/CAD reached one of the highest weekly levels, hovering around 1.2760 following a steady uptrend. However, the pair remains solid as the market risk-off sentiment aligns with crude oil on Tuesday morning.

Nonetheless, the positive quote is reflected in the US Dollar’s historic safe-haven currency status. This comes as the political tensions increased in Eastern Europe as Russian President Vladimir Putin announced independence for Donetsk and Luhansk. The news backed the warnings over the invasion of Ukraine as more than just a show of muscle. The Russian President consequently signed a decree of cooperation with the two separatist states.

Market Sentiment Gloomy Over Russia-Ukraine Tensions

This turmoil led the United Nations to issue a call for an emergency meeting, during which the Secretary-General for Political Affairs expressed her regret over the deployment of troops in eastern Ukraine under the banner of a peacekeeping mission.

Consequently, global and regional powers reacted to the move in different ways. The UK, US, and Canada announced their willingness to impose new economic sanctions on Moscow. While Japan warned that they would stop the export of chips to Russia, Australia aligned itself with allies on the issuing of further sanctions.

The Russian UN envoy claimed that President Putin has no intentions of allowing a renewed conflict in Donbas. While China’s representative lined up with stressing the need for all parties to exercise restraint and avoid more tensions.

US, Canadian Traders Back After Long Weekend

In other news, WTI crude oil, kicked off the week on a high at $93.65 before slightly slipping back to $92.50. This has been one of the highest levels reached for the commodity in eight years. Meanwhile, the S&P 500 futures slid more than 1.60% as traders in the US and Canada come back after a long weekend. Indeed, their reaction to the latest news will be important for the next USD/CAD price move. Also interesting to keep an eye on is Canada’s ADP Employment Change for January and the preliminary US PMIs for February.

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*OspreyFX would like to state that traders should research extensively before following any information given hereby. Any assumptions made in this article are provided solely for entertainment purposes and not for traders to guide or alter their positions. Please read our Terms & Conditions and Risk Disclosure for more information.

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