- GBP/USD sees more downside as G7 determines to force further financial pressure on Russia.
- The surrounding of 300 tanks near the Belarussian-Ukraine border is indicating more destruction ahead.
- The British pound fails to capitalize on upbeat British PMI Manufacturing print.
The GBP/USD pair looks to plunge near its three-month low at 1.13160 on a fresh wave of risk aversion as fears over the Russia-Ukraine war intensifies after the G7 determines to force further financial pressure on Russia.
US Treasury Secretary Janet Yellen said on Tuesday that the Group of Seven nations would convene a task force to focus on freezing and seizing assets of Russian elites, as per Reuters. The headlines are likely to cripple the Russian economy further as the latter has started facing a financial crisis after disconnecting with SWIFT international banking system.
Meanwhile, the Ukraine-Belarusian border gets flooded with Belarusian tanks. Ukraine Defense intelligence said that there are 300 Belarussian tanks close by the Belarussian-Ukraine border, as per The Jerusalem Post. This is indicating further escalation in the Russia-Ukraine war, which may last longer.
Earlier, Russia’s brutal invasion of Ukraine has brought carnage in the risk-sensitive assets. The cable has addressed significant offers at every pullback. However, the mighty US dollar index (DXY) has crossed 97.00 on strong US Manufacturing PMI and New Orders Index numbers. While, in the British docket, the PMI Manufacturing has landed at 58 higher than the prior print and market estimate of 57.3 but fails to strengthen the pound against the greenback.
Apart from the headlines of the Russia-Ukraine war, testimony from the Federal Reserve (Fed) Chair Jerome Powell will be keenly watched, which is due on Wednesday.