# Russia-Ukraine turmoil triggers market stress alarms

> Market liquidity weakened during the week and deteriorated overnight amid Russia-Ukraine turmoil. The dollar index rose nearly 1%, mainly at the expense of the euro, which fell about 3% that week. The decline was attributed to Europe's exposure to the Russian economy.

- Date: 2022-03-05 · published 2022-03-05T12:00:00.000Z
- Category: geopolitics · region Europe · magnitude low
- Page: https://feedsoft.ai/events/8261-russia-ukraine-turmoil-triggers-market-stress-alarms
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

Market stress and a stronger dollar create currency-driven swings in dollar-priced feed commodities, with the effect on import costs for European buyers depending on how long the strain lasts.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2022-03-07 | 5 | -3.2% | -3.9 | Euro fell about 3% that week as dollar demand rose and Europe's exposure to Russia was priced in, matching the size of the move. |
| DXY | 2022-03-07 | 5 | +1.8% | 3.1 | Weekly dollar gain of nearly 1% against a euro down about 3% on Europe's exposure to Russia, and weakened market liquidity, reflects the stress-driven dollar bid. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-02-25 | [From euro to EM: Russia's Ukraine war upends market bets \| Reuters](https://feedsoft.ai/events/9834-from-euro-to-em-russia-s-ukraine-war-upends-market-bets-reuters.md) | +0.0% | +0.0% |
| DXY | 2022-02-25 | [Euro tries to recover after tumbling on Russian invasion of Ukraine - Markets - Business Recorder](https://feedsoft.ai/events/9837-euro-tries-to-recover-after-tumbling-on-russian-invasion-of-ukraine-markets.md) | +0.0% | +0.0% |
| DXY | 2022-02-24 | [Treasury yields slide as Russia invades Ukraine](https://feedsoft.ai/events/42877-treasury-yields-slide-as-russia-invades-ukraine.md) | +1.0% | +1.2% |
| DXY | 2022-02-22 | [Asian FX, stocks slip as Russia-Ukraine tensions escalate \| Reuters](https://feedsoft.ai/events/42953-asian-fx-stocks-slip-as-russia-ukraine-tensions-escalate-reuters.md) | +0.4% | +1.0% |
| DXY | 2022-02-25 | [Dollar surges as Russia invades Ukraine - Business & Finance - Business Recorder](https://feedsoft.ai/events/6985-dollar-surges-as-russia-invades-ukraine-business-and-finance-business-recorder.md) | +0.0% | +0.0% |
| EURUSD | 2022-02-25 | [From euro to EM: Russia's Ukraine war upends market bets \| Reuters](https://feedsoft.ai/events/9834-from-euro-to-em-russia-s-ukraine-war-upends-market-bets-reuters.md) | -0.9% | -1.3% |
| EURUSD | 2022-02-25 | [Euro tries to recover after tumbling on Russian invasion of Ukraine - Markets - Business Recorder](https://feedsoft.ai/events/9837-euro-tries-to-recover-after-tumbling-on-russian-invasion-of-ukraine-markets.md) | -0.9% | -1.3% |
| EURUSD | 2022-02-24 | [Euro hits three-week low, Aussie skids as Putin orders troops into Ukraine - Markets - Business Recorder](https://feedsoft.ai/events/9835-euro-hits-three-week-low-aussie-skids-as-putin-orders-troops-into-ukraine.md) | -1.9% | -2.8% |

## Sources

- reuters.com: https://www.reuters.com/business/us-funding-stress-metric-rises-again-2022-03-04/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.