The West, as well as Japan, prepares harsh measures in response to Russian President Vladimir Putin’s decree "on friendship and cooperation," with Donetsk and Luhansk in Eastern Ukraine.

Firstly, UK PM Boris Johnson is up for a Cabinet Office Briefing Rooms (COBR) meeting at 06:30 GMT (01:30 ET) Tuesday. The agenda mentioned, “To discuss the latest developments in Ukraine and to coordinate the UK response including agreeing a significant package of sanctions to be introduced immediately.”

Following that, the Canadian Foreign Minister crossed wires while mentioning, “Canada strongly condemns Russian recognition of two breakaway regions in Eastern Ukraine, preparing to impose economic sanctions in response.”

Furthermore, the US ordered all remaining State Department personnel to leave Ukraine and US Embassy in Kyiv will be shifted to Poland while French Presidential Office mentioned, “France wants Friday's meeting of Russian and French Foreign Ministers in Paris to be maintained.” 

It’s worth noting that Japan’s Yomiuri mentioned, “Japan to join US in halting semiconductor exports to Russia if it invades Ukraine.”

Additionally, Australia PM Scott Morrison said that they will be in lockstep with allies on sanctions on Russia.

Also read: Western nations moving swiftly to sanction Russia as cold war warms-up

FX reaction

The news weighed on the market’s risk appetite and drags Antipodeans like AUD/USD and NZD/USD, while also fueling gold prices.

Read: NZD/USD sellers attack 0.6700 as Russian headlines widen risk-off mood