Tensions between Russia and Ukraine remain elevated into the new year. Yohay Elam, an Analyst at FXStreet, explains how a Russian-Ukranian clash would affect markets and create trading opportunities.

An outright war remains a remote scenario and could trigger a rush to safe havens

“How will the Russia-Ukraine conflict impact markets? Basically, geopolitical worries tend to boost the safe-haven dollar and yen. The Swiss franc could also gain ground but to a lesser extent.”

“Ukraine does not possess critical resources and Western countries are likely to intervene in a conflict between Russia and Ukraine. Sanctions could push oil prices higher in the longer term, but probably not more than that.”

“Overall, a Russian invasion of Ukraine could trigger a dollar-selling opportunity.”