- GBP/USD has fallen like a house of cards on soaring Russia-Ukraine tensions.
- The official announcement of Russia's invasion of Ukraine by NATO has pushed DXY higher.
- Investors are dumping risk-perceived assets on heightening the war-like situation in Eastern Ukraine.
The GBP/USD pair has attracted some significant offers near 1.3532, which has sent the cable towards 1.3500.
The selling pressure has ramped up after NATO officially announced that Russia is invading Ukraine. The negative developments over an imminent war situation have spooked the market participants. The cable has started falling like a house of cards amid the heightning risk aversion theme.
The expectations of an imminent war turn into reality after the Russian Federation Council give a free hand to Russian President Vladimir Putin to deploy military forces in the eastern region of Ukraine.
Meanwhile, the United Nations (UN) Secretary-General said: Russian “President Putin, stop your troops from attacking Ukraine” in the going emergency Security Council meeting.
Explosions begin sounding in the distance in Kyiv, as per CNN news, which is compelling investors to dump risk-perceived assets such as the pound.
The continuation of negative headlines over the Russia-Ukraine war has created havoc for the market. This has improved the safe-haven appeal, which is clearly visible in the demand of the DXY.
The DXY looks set to claim 97.00, currently trading at 96.57 (at the time of writing), and 0.4% above Wednesday’s closing price. While the US Treasury yields are facing sheer heat. The benchmark 10-year US Treasury yields has plunged almost 3.85% on Thursday around 1.90%.