US dollar Exchange Rates: USD Benefits from Geo-Political Tensions, Outlook Turns Positive

London (Feb 27)  With geo-political tensions on the rise it is the US dollar exchange rate complex that is today seeing the bulk of investor interest.

US Dollar Exchange Rates Today: We are seeing the US dollar rise across the board as the geo-political risk posed by Ukraine steps up a gear. After days of tight ranges we are finally starting to see movement.

In addition, while US durable goods orders provided the data highlight on Wednesday, Fed Chair Yellen's rescheduled testimony to the Senate today will likely attract the lion's share of interest.

A look at the US dollar exchange rate complex shows:

• The GBP/USD is: 0.27 pct lower at 1.6627.
• The EUR/USD is: 0.24 pct lower at 1.3654.
• The AUD/USD is: 0.47 pct lower at 0.8927.
• The USD/CAD is: 0.04 pct higher at 1.1134.

• The US dollar is however seeing losses against those two ultimate safe haven destinations - CHF and JPY.

  "Risk aversion clearly hit the forex market at the start of European trade today after tensions between Russian and Ukraine escalated sparking rallies in the Japanese yen and the Swiss franc," says Boris Schlossberg at BK Asset Management.

  Traders will be keen to hear whether Ms. Yellen will remain on track with the QE taper or whether she may hint that the Fed will be open to maintaining the stimulus longer in order to help US economy to recover from the recent weather woes.

  "Any suggestion of delay in the taper could send the dollar plunging against the yen with pair possibly testing the 101.00 level in response to such a move," warns Schlossberg.

• Source: PoundSterlingLive