GBP/USD finds bids around 1.3580 on opening despite the geopolitical headwinds

• GBP/USD finds a decent opening despite the escalation of the Russia-Ukraine tussle.
• The risk-aversion tone set by the geopolitical tensions may underpin bears to the cable.
• The UK’s Market Service PMI may add volatility amid an already uncertain market.

The GBP/USD pair has attracted significant bids near 1.3580 despite the negative developments in the Russia-Ukraine tensions over the weekend. The build-up of troops by Moscow and separatists near the eastern region of Ukraine has raised the expectations of a potential invasion of Russia to Ukraine.

The continuous warnings from NATO that Russia could strike on Ukraine have created havoc on market sentiment. Meanwhile, the extension of drills by Russia and Belarus despite its agreed termination on Sunday has escalated the tensions.

On one side, where Ukraine’s President Volodymer Zelensky is demanding security guarantees against the Kremlin from the Western leaders, which aspires to accompany NATO and the EU, Moscow is demanding assurance that the North Atlantic Alliance will not accept Ukraine as it may pose threat to the Putin’s area.

Investors are unable to find a suitable asset to be added due to the obscurity over the geopolitical picture, which seems to display wide range ticks but in a capped range. Therefore, follow-up of a risk aversion theme by the investors will be witnessed.

Meanwhile, the rising bets over an aggressive monetary policy from the Federal Reserve (Fed) are going to make it difficult for the cable to find some grounds.

Although the headlines along the Russia-Ukraine tensions will remain the major driver Britain’s Purchasing Managers Index (PMI) service to be released by both the Chartered Institute of Purchasing & Supply and the Markit Economics will hold the nerves of the investors. As per the market estimates, the UK’s Markit Services PMI will land at 55.2, above the previous print of 54.1.