News: FOREX-Ukraine tension reins in euro, lifts dollar and safe-havens

Euro nursing losses, yen firm
Rouble sold as Ukraine tensions drive sanctions threat
The dollar and safe-haven currencies held firm and riskier ones struggled for traction on Monday, with traders on edge about the prospect of war in Europe and unsettled by soaring inflation.
The risk of war in Ukraine pushed the euro down on Friday and it was nursing losses at $1.1346 EUR=EBS on Monday, well below last week's top of $1.1495.
The Australian and New Zealand dollars were also pinned below last week's levels and the Russian rouble RUB= was struggling after the spectre of sanctions sparked its sharpest fall in nearly two years on Friday.
The safe-haven yen has climbed to 115.53 yen JPY=EBS from a five-week low of 116.34 last week.
Russia could invade Ukraine at any time and might create a surprise pretext for an attack, the United States said on Sunday. German Chancellor Olaf Scholz, who heads to Kyiv on Monday and Moscow for talks with President Vladimir Putin on Tuesday, warned of sanctions if Moscow did invade.
The flashpoint adds to stress already evident in markets' volatile response to hotter-than-expected U.S. inflation data last week, which unleashed bets on the Federal Reserve lifting rates more than 160 basis points before the end of the year.
"With Fed hike expectations surging again and geopolitical tensions in Ukraine escalating dramatically the dollar index should be back on the front foot again," said analysts at Westpac.
The dollar index =USD crept up to 96.059 in the Asia session. Analysts see the euro, which dropped 1.2% on the yen EURJPY= on Friday, and oil importers' currencies as most at risk from conflict in Ukraine. Oil prices have surged.
Later on Monday, European Central Bank President Christine Lagarde addresses the European Parliament and St Louis Fed President James Bullard, who roiled markets with hawkish comments in the wake of last week's inflation data, appears on CNBC.
Sterling GBP=D3 held at $1.3542 on Monday as investors are convinced the Bank of England is hiking rates next month and pricing about a 40% chance of a 50 basis point rise.
The New Zealand dollar NZD=D3 fell 0.5% to $0.6622 and the Australian dollar AUD=D3 eased 0.2% to $0.7119.
Australian jobs data is due on Thursday and the risk of surprise has driven Aussie dollar volatility gauges AUDSWO= to nearly one-year highs.
The U.S. Federal Reserve releases its January meeting minutes on Wednesday.
Last week's chatter about an inter-meeting hike was tamped down when the Fed released an unchanged bond buying schedule for the coming month, since the central bank has said it would only hike after its buying had ceased.
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	Currency bid prices at 0438 GMT 
 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	   EUR=EBS	$1.1346		$1.1346	 +0.01%		 -0.19%	  +1.1369	 +1.1331 
 Dollar/Yen		JPY=EBS	115.5000	   115.5000	+0.04%		 +0.46%	  +115.5900   +115.3000 
 Euro/Yen		 																			 
 Dollar/Swiss	  CHF=EBS	0.9258		 0.9255	  +0.03%		 +1.49%	  +0.9258	 +0.9248 
 Sterling/Dollar   GBP=D3	 1.3541		 1.3561	  -0.15%		 +0.12%	  +1.3571	 +1.3535 
 Dollar/Canadian   CAD=D3	 1.2730		 1.2739	  -0.09%		 +0.66%	  +1.2745	 +1.2721 
 Aussie/Dollar	 AUD=D3	 0.7117		 0.7137	  -0.25%		 -2.06%	  +0.7150	 +0.7116 
 NZ				NZD=D3	 0.6620		 0.6653	  -0.47%		 -3.25%	  +0.6649	 +0.6614 
 Dollar/Dollar																				   
All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX
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World FX rates	https://tmsnrt.rs/2RBWI5E 
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