GBP/USD Retreats Amid Risk-Off Market Mood

The GBP/USD snaps two days of gains and begins the week on the wrong foot amid increasing geopolitical tensions in eastern Europe. At the time of writing, the GBP/USD is trading at 1.3528.

The market sentiment is downbeat, depicted by European bourses falling, while US futures point to a lower open. The Ukraine – Russia tensions still weigh on market players’ risk appetite, as uncertainty in talks, and mixed messages crossing the wires, keeps some investors at bay, while others have turned to safe-haven assets. In the FX market, the gainers are the USD, JPY, and CHF.

An absent UK economic docket left GBP/USD traders adrift to geopolitical events and Fed speakers on Monday.

In the meantime, around 12:37, GMT crossed the wires that Russian Foreign Minister Lavrov told Russian President Vladimir Putin that responses from the EU and NATO have not been satisfactory. Furthermore, he added that the US had put forward concrete proposals on reducing military risks. Nonetheless, Lavrov said he could see a way to move forward talks. Afterwards, the GBP/USD bounced from 1.3500 to 1.3546.