Russia-Ukraine conflict back in headlines | FX Research

Geopolitical tension is impacting markets this Tuesday after President Biden gave the green light for Ukraine to use long-range missiles supplied by the U.S. to strike inside Russia.

Russia has not been pleased with this development and has responded by stating that any decision to use long-range missiles against Russia would lead to heightened tensions.

President Putin has also signed an updated nuclear arms doctrine, which includes the possibility of a nuclear response to aggression by non-nuclear states supported by other nuclear powers. As a result, we are seeing a flight to safety back into the dollar, along with some downside pressure on U.S. equities—though not significantly, but enough to suggest a risk-off sentiment.

Looking ahead, key data releases include Canadian inflation, U.S. housing starts and building permits, and the New Zealand GDT auction.

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