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US dollar sees high demand amid Ukraine conflict

Thursday 24 February, 2022

Daily Currency Update

Demand for the safe-haven US dollar and the Japanese yen soared, while commodity currencies like the Canadian dollar retreated on Thursday after Russia took the unprecedented step of starting military action in Ukraine. Concerns remain on what sanctions on Russia could mean to the global economy and what impact this could have on already soaring global inflation. With Russia one of the leading suppliers of natural gas and oil to Europe, a reduction of supply could send oil and natural gas prices soaring. At the time of writing, oil topped $100 US a barrel. The US Dollar Index, which measures the value of the dollar against its major counterparts, climbed 1.44%, sitting at 97.56 at the time of writing. USDCAD was up 0.87% trading at 1.28466.

Key Movers

The euro and the pound fell on Thursday as safe-haven flows helped boost the US dollar, the Japanese yen and other assets like gold and oil. EURUSD was down 1.54% trading around 1.1132 while GBPUSD was down 1.68% sitting at around 1.33. Investors are paying close attention to developments as some media outlets have described the invasion the ‘worst geopolitical situation in Europe since the second world war’.

Expected Ranges

  • EUR/CAD: 1.4291 - 1.4409 ▼
  • GBP/CAD: 1.7091 - 1.7265 ▼
  • AUD/CAD: 0.9139 - 0.9219 ▼
  • USD/CAD: 1.2711 - 1.2876 ▲