As Commodities React To Russia-Ukraine Conflict, FOREX.com Looks To Help Traders Stay On-Top Of The Developing Situation And Manage Risk

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Russia’s attack on Ukraine has caused a stir in the world’s financial markets. 

Russia’s Moscow Exchange (MOEX) index fell 50% from all-time highs in the single-worst drop ever recorded on the index. The almost-immediate erasure of approximately $150 billion in value sparks the beginning of potential reactions to Russia’s invasions. Moscow’s suspension of its stock exchange, the ruble’s descent to a two-year low, and the Dow Jones’s 700-point drop in the premarket session are just a few ripples resulting from Russia’s military actions. 

Russia’s power position as a major exporter and importer of the world’s many commodities puts the commodities market in a particularly interesting position for investors. While there’s still plenty of uncertainty about how things will evolve, it’s worth looking at potential situations that could arise. 

Given the promise of retaliation by the world leaders of Canada, Britain, the U.S., and NATO members via stringent economic sanctions, it’s of particular interest to note how these would potentially impact the commodities markets. 

FOREX.com, a broker in the U.S. for foreign exchange (forex) trading, has reacted quickly to the Russia-Ukraine development, providing investors and traders with a direct outlet to the latest news and how it could impact the market here. 

Commodities: What’s Happening And Where Can They Go From Here?

Oil, gold, the U.S. dollar, wheat, palladium, and platinum have reacted heavily to Russia’s invasion. 

• Oil surged to a new seven-year high as the $100 per barrel price etches closer to reality. FOREX.com reports users that were long on U.S. crude jumped from 8% 11 days ago to 53% by the end of last week. 
• The EUR/USD pair dropped to a valuation untested since June 2020, and the GBP/USD pair experienced a hefty drop. FOREX.com dives into these movements here. 
• Wheat prices surged 5.6% to $935 a bushel. Russia contributes nearly 20% of the global wheat trade and is the world’s largest wheat exporter.
• Gold rose 2.7% to $1,960 an ounce, palladium hit a near six-month high, and platinum and silver futures spiked.

With sanctions underway and political instability brewing, these commodities may experience further spikes in price. Russia exports 12% of the world’s crude oil, 53% of which goes to European countries. 

Economic sanctions may substantially raise prices on Russia’s extensive supply of commodities like wheat, palladium, and platinum, while gold prices and U.S. cash could rise as political turmoil continues. 

Please be aware that CFD Trading involves complex financial instruments with significant risk of loss. Also, trading during times of volatility is extremely risky and not suitable for all investors.   

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This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.