Ukraine requests meeting with Russia in next 48 hours, UK says ‘a ray of hope’

Markets are pretty quiet starting out a fresh week on Monday, having witnessed volatile trades late Friday after the US was reportedly seen signaling a Russian invasion into Ukraine beginning this week.

The risk sentiment is somewhat in Asia but traders remain cautious, watching over the geopolitical developments, concerning Russia and Ukraine. It’s a potentially decisive week for the markets.

Earlier on, the US said the standoff with Moscow over Ukraine can still be resolved diplomatically.

Meanwhile, Ukraine has called for a meeting with Russia and other members of a key European security group, requesting a meeting within the next 48 hours for "transparency" about Russia's plans, BBC News reported.

On the other side, a tweet from the Russian Embassy for the UK cited, “FM #Lavrov: After Russian troops finish drills and return to barracks, West will declare 'diplomatic victory' by having 'secured' Russian 'de-escalation'. Predictable scenario and cheap domestic political points.”

This tweet was seen as “a ray of hope" by a senior UK government security source.

“The UK Boris Johnson has urged his Russian counterpart Vladimir Putin to “step back from the brink” as he insisted there was still a “window of opportunity” to avoid war in Ukraine,” per The Telegraph.

The Prime Minister is expected to speak to world leaders from Monday and travel to countries in Europe later this week, as he seeks to unite Western allies against the threat of Russian invasion.

This comes after Downing Street reported Sunday, “the UK believes Moscow could invade Ukraine at any moment.”

Market implications

Despite a glimmer of hope for diplomacy and de-escalation, the high-beta currencies such as AUD/USD is trading on thin ice, pressurizing lows near 0.7125, as of writing. The aussie is down 0.13% so far.

The S&P 500 futures are losing 0.08% on the day while gold price is consolidating Friday’s massive surge near $1,860, as bulls take a breather before the next push higher.

Related reads

• US pursues ‘diplomacy and deterrence’ in Ukraine / Russian crisis
• The call between Biden and Putin has ended, markets on high alert with finger over the panic button