GBP/USD hits fresh 52-week low at 1.3080 on renewed fears over Ukraine crisis

• The cable hit a fresh 52-week low at 1.3082 on unacceptable demand of Russia for a ceasefire.
• A fresh wave in the risk-aversion theme has forced investors to dump the pound.
• Higher US CPI print has made the cable more vulnerable.

The GBP/USD slipped below Wednesday’s low and printed a fresh 52-week low at 1.3082 on renewed fears of the Russia-Ukraine war as the negotiations talks ended with no material outcome on Thursday. A sense of optimism was established in the risk-sensitive assets after Ukrainian President Volodymyr Zelenskyy adopted a softer tone on joining NATO. The market participants have started betting over a ceasefire between the nations. However, things turned ugly when Russia demanded ‘surrender’ from Ukraine.

The discussions aiming at a ceasefire between the Kremlin and Kyiv ended with no progress on Thursday after the Russian diplomat escalated its demand to ‘surrender’ from Ukraine against the membership withdrawal from NATO and recognition of eastern Ukraine pro-Russian regions as ‘independent’.

"Russia is not in a position at this point to establish a cease-fire. They seek a surrender from Ukraine. This is not what they're going to get," Kuleba said following a sit down with Russia’s Lavrov.

This has indicated that a halt on the Russian military activity in Ukraine is far from over and an improvement which was witnessed in the risk appetite of investors may fade off soon.

Apart from the fresh wave in risk-aversion theme, the pound bulls have been hammered against the greenback as the US dollar index (DXY) strengthened. The DXY has climbed above 98.50 on rising inflation pressures in the US. The US Consumer Price Index (CPI) hit a 40-year high on Thursday at 7.9%, which has spurted the bets over an aggressive interest rate decision by the Federal Reserve (Fed).