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The USD/CHF pair has witnessed a pullback near 0.9340 after a decisive selling pressure from 0.9460 amid renewed fears of ceasefire delay between Russia and Ukraine. The Kremlin reportedly said that news pointing to progress in Ukraine-Russia peace talks was “wrong,” as per Reuters.
Earlier, Ukraine officials reported that the negotiators from Russia and Ukraine are progressing towards a ceasefire as both nations are preparing a 15-point peace plan, which inculcates the clause of ceasefire and withdrawal of Russian military activities in Ukraine. This had brought a steep reversal in the demand for risk-perceived assets.
The expansion of risk appetite had weighed pressure on the greenback. However, rising bets over a prolonged war between Russia and Ukraine has renewed fears of dragging sentiment at the backfoot.
Meanwhile, the US dollar index (DXY) has addressed some bids near 97.70, which seems a minor pullback after a steep fall on elevation in Federal Reserve (Fed)’s interest rates by 25 basis points (bps). Fed Chair Jerome Powell and his colleagues have dictated a solution of seven rate hikes for 2022 to corner the galloping inflation. This had activated the ‘buy on rumor and sell on news’ indicator and the DXY eased swiftly.
Going forward, the market participants are likely to dictate their positions on the headlines from the Russia-Ukraine war. But, the US Existing Home Sales data from the National Association of Realtors and speech from Federal Reserve Bank Governor Michelle Bowman will hold significant importance, which are due on Friday.
