Dollar rises ahead of Fed, fear reigns.

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The dollar had a rough start to the day, but it was able to regain ground throughout US trading hours. The EUR/USD pair is currently trading at 1.0940, while the GBP/USD pair is trading at 1.3035.

Kyiv, according to President Vladimir Putin, is not serious about finding a solution that is acceptable to both parties. Hopes for a diplomatic deal were dashed by the news. Earlier in the day, Ukraine President Volodymyr Zelenskyy's adviser expressed confidence that a diplomatic solution might be reached in the coming weeks.

After being suspended from the Council of Europe on February 25, Russia made a request to exit the organization. Moscow also imposed a slew of restrictions on US officials, including President Joe Biden, and barred Canadian Prime Minister Justin Trudeau from entering the country.

President of the European Central Bank Christine Lagarde addressed at the WELT Economic Summit, noting that the economic picture had become significantly more uncertain, since the war will impede growth and cause inflation owing to rising energy and commodity costs. She also stated that inflation is expected to progressively drop and settle at the central bank's 2% objective by 2024.

China announced unprecedented health crisis outbreaks and declared a state of emergency for over 17 million people, lowering economic development prospects. Throughout the first half of the day, stocks and commodities were on the decline due to concerns about lower demand.

Gold bottomed at $1,907.04 a troy ounce, bouncing modestly ahead of the close to settle around $1,920 a troy ounce. Crude oil prices continued to fall, with WTI ending the day at $96.50 a barrel.

The AUD/USD pair traded in a narrow range throughout the day, closing the day little altered below 0.7200. The Canadian currency has benefited from lower oil prices and higher commodity prices, resulting in a drop in the USD/CAD rate to 1.2766.

Despite rising fears over the Russia-Ukraine situation, Wall Street made significant gains. US government bond yields were higher, with the 10-year Treasury note yield reaching a multi-week high of 2.169 percent and ending the day close to that level.

The emphasis of the market now switches to the US Federal Reserve, which will announce its monetary policy decision on Wednesday and is likely to result in a rate hike of at least 25 basis points.

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