Dollar Continues to Dominate Markets Amid Geopolitical Tensions
Financial markets are adopting a cautious stance on Tuesday amid mounting geopolitical uncertainty. The US Dollar (USD) is still trading strong, with the dollar index extending its post-Fed gains towards key resistance.
The Reserve Bank of Australia's Governor Michele Bullock said that supply shocks are difficult for monetary policy to deal with and reiterated that the policy needs to deal with second-round effects on inflation. However, this failed to support the Australian Dollar (AUD) and AUD/USD is trading near 0.7100.
The EUR/USD is staying under bearish pressure and has fallen below 1.1450 in the European morning. European Central Bank President Christine Lagarde will deliver a pre-recorded video later in the session at the 10th Annual Research Conference 'Central Banks' Response to Future Challenges: Resilience, Credibility, and Innovation.'