The Russian Defense Ministry said on Tuesday that it would stop military activity in Kyiv and Chernihiv in order to create conditions for dialogue, reported Reuters. The Russian Defense Ministry called on Ukraine to abide by the Geneva Convention for Prisoners of War. 

Market Reaction

A recent announcement alluding to a ceasefire around key northern Ukrainian cities of Kyiv and Chernihiv as well as updates alluding to constructive peace talks has triggered an improvement in risk appetite. The safe-haven US dollar dipping as a result, with the DXY recently slipping back under to 98.50 and to session lows. Other safe-havens have also taken a knock, with spot gold dipping around $10 in a matter of minutes to test the $1900 level. 

The US 10-year yield also popped to fresh session highs above 2.52% as safe-haven US bonds come under selling pressure. Meanwhile, the unwind of geopolitical risks has seen oil prices come under sharp selling pressure, with front-month WTI futures dropping hard from the $107 area to the low $100s.