"US and its allies would respond to Russia's aggression," said the White House (WH) during early Friday.

The news came after chatters that Russia rejected Ukraine's proposal to strengthen the July 2020 ceasefire.

The White House communiqué also mentioned that US President Joe Biden reaffirmed the United States’ unwavering commitment to Ukraine’s sovereignty and territorial integrity.  

“The leaders called on Russia to de-escalate tensions and agreed that diplomacy is the best way to make meaningful progress on conflict resolution,” said the WH document covering talks between US President Biden and his Ukrainian counterpart Volodymyr Zelenskyy.

Fx implication

The news should have weighed on the risk appetite and commodity prices but the market’s cautious mood ahead of the key US inflation data dims the reaction.

Read: US Consumer Price Index November Preview: Inflation is the new cause celebre