It was another volatile day for financial markets as geopolitical developments influenced global risk sentiment.

Stocks rallied, the dollar softened and oil prices weakened on the prospects of peace talks between Russia and Ukraine. There was plenty of action in the FX space as major currency pairs reacted to a weakening dollar, while gold and other safe-haven assets struggled to shine amid the improving market mood. Later this evening, the Federal Reserve is widely expected to raise interest rates for the first time since 2018 which could lend some support to the greenback.

Asian stocks were painted red on Tuesday morning as continuing geopolitical risks and surging Covid-19 cases in China dealt another blow to risk appetite. In the currency space, the dollar got off to a shaky start despite the rise in Treasury yields while gold extended losses, sinking closer to $1900. Also falling are WTI oil prices which fell below $100 as China imposed lockdowns in key cities.

If you are not afraid of volatility and want some action, then keep a close eye on the GBPUSD.

The week ahead promises to be eventful for the currency pair thanks to the Federal Reserve (Fed) and Bank of England (BoE) meetings.

A wave of risk aversion swept across financial markets on Monday following news over the weekend that the United States could potentially ban Russian oil imports. Asian markets were a sea of red while European shares tumbled to a one-year low as investors rushed towards safe-haven destinations.