DXY falls as fears about the attack on Ukraine’s nuclear power plants ease.
The Ukraine crisis continues to dominate the US NFP’s attention.
EUR/USD has seen a rapid retracement to 1.1050 after hitting fresh 2022 lows of 1.1010 in just the last hour.
After news broke that Russia had attacked Europe’s largest nuclear power station in Ukraine, the main currency pair was under severe selling pressure. A few kilometers away from Enerhodar is the Zaporizhzhia Nuclear Power Plant.
After a report of a fire resulting from Russia’s shelling, markets began to consider radiation risks. Risk sentiment was severely affected. The S&P 500 futures fell 1.33%, while the US Dollar index jumped up to 98.08 at one point. This caused the EUR/USD to crash to close to 1.1000 psychological levels.
The decline in radiation levels at Zaporizhzhia’s nuclear power plant was reversed quickly after calming statements were made by the Ukrainian authorities and the International Atomic Energy Agency. According to the Zaporizhzhia Regional State Administration, “nuclear safety is assured.”
These statements provided some relief for the major as the safe-haven US Dollar slowed gains and the S&P 500 futures recouped losses. The pair trades at 1.1038, 0.23% lower than the previous day.
The Russia-Ukraine conflict will remain the major market driver. Traders eagerly await US Nonfarm payrolls data to update their USD valuations.
