USD/CAD steadies around 1.2800 amid hopes for Russia-Ukraine ceasfire

• USD/CAD is auctioning below 1.2800 ahead of a ceasefire expectation between Russia and Ukraine.
• The DXY loses strength on modest trim in the risk-off impulse.
• A rebound in WTI oil prices has underpinned the Canadian dollar against the greenback.

The USD/CAD pair keeps its range around1.2800, as investors wait for the announcement of sanctions from the West in response to Russia’s invasion of Ukraine.

The headlines from CNN that “Russian military forces are expected to begin a large-scale bombardment of the Ukrainian capital city of Kyiv” have held the nerves of investors. The risk-off of the market is still in action, however, the investors have turned cautiously optimistic as Moscow is ready to negotiate terms on Ukraine’s surrender.

According to Kremlin Press Secretary Dmitry Sergeyevich Peskov, Russian President Vladimir Putin is willing to engage in discussions with the Ukrainian President Volodymyr Zelenskyy, with a focus on obtaining a guarantee of neutral status and the promise of no weapons on its territory, as per the Ommcom news.

Meanwhile, West Texas Intermediate (WTI), futures on NYMEX, has retreated from the lows around $91.00, which has also underpinned the Canadian dollar against the greenback.

The US dollar index (DXY) has turned flat as the risk-off impulse loses its grip amid the expectations of negotiations between Russia and Ukraine to a ceasefire but with various stipulations. However, the DXY may find ground soon as the fears of an expected aggressive monetary policy by the Federal Reserve (Fed) will start hovering again. Meanwhile, the 10-year US Treasury yields look to reclaim 2%.