The euro and the pound weakened against their major counterparts in the early European session on Wednesday, while the U.S. dollar appreciated, as geopolitical tensions intensified in Eastern Europe and oil prices surged in the wake of aggressive sanctions imposed on Russia by the U.S. and Western countries.

Brent oil climbed above $110 a barrel ahead of a meeting of the OPEC and its allies to discuss monthly oil output amid the Russia-Ukraine conflict.

In the State of the Union speech, President Joe Biden said that Russian planes have been banned from the U.S. airspace in retaliation for the attacks on Ukraine.

On Tuesday, Russia warned of high-precision strikes in Kyiv and told Ukrainian citizens to leave their homes.

Russian forces intensified their attacks on urban areas, bombarding a TV tower near central Kyiv and the central square in Kharkiv.

Investors reduced expectations for a 50 basis point hike at the March 16 Fed meeting, but a 25 basis point move is priced in.

Federal funds futures markets now assign only a 5 percent chance of a 50 basis point hike at the upcoming Fed meeting.

Market participants await Fed Chair Jerome Powell's testimony before the U.S. Congress on Wednesday and Thursday for more clarity on interest rates.

The euro depreciated to 1.1084 against the greenback, a level unseen since May 2020. The currency may locate support around the 1.08 mark.

The euro fell to 1.0193 against the franc, registering over a 7-year low. If the euro falls further, 0.99 is likely seen as its next downside target level.

The euro edged down to 127.61 against the yen and 1.4094 against the loonie, off its early highs of 128.09 and 1.4180, respectively. The euro is poised to challenge support around 125.00 against the yen and 1.39 against the loonie.

The euro declined to near a 1-year low of 1.5275 against the aussie and more than a 3-month low of 1.6376 against the kiwi, down from its prior highs of 1.5342 and 1.6476, respectively. The euro is seen facing support around 1.49 against the aussie and 1.58 against the kiwi.

Reversing from an early high of 0.8360 against the pound, the euro dropped to 0.8329. Should the euro slides further, 0.80 is likely seen as its next support level.

The pound weakened to more than 2-month lows of 1.3271 against the greenback and 1.2206 against the franc, following its prior highs of 1.3339 and 1.2262, respectively. The currency is likely to find support around 1.30 against the greenback and 1.19 against the franc.

The pound retreated from an Asian session's high of 153.44 against the yen and slipped to 152.81. Next likely support for the currency is seen around the 150.00 level.

The greenback appreciated to 0.9206 against the franc and 115.27 against the yen, from its early lows of 0.9179 and 114.79, respectively. Next key resistance for the greenback is seen near 0.94 against the franc and 118.00 against the yen.

The greenback rebounded to 0.7243 against the aussie and 0.6753 against the kiwi, from its previous session's lows of 0.7283 and 0.6783, respectively. The next possible resistance for the greenback is seen around 0.70 against the aussie and 0.64 against the kiwi.

The greenback, meanwhile, pulled back against the loonie and was trading at 1.2712. On the downside, 1.25 is possibly seen as its next support level.

Looking ahead, Eurozone inflation for February will be published in the European session.

U.S. ADP private payrolls data for February is scheduled for release at 8:15 am ET.

At 10 am ET, Federal Reserve Chair Jerome Powell will testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington DC.

At the same time, the Bank of Canada will announce its interest rate decision. The BoC is widely expected to raise interest rate to 0.5 percent from 0.25 percent. The Fed Beige book report will be released in the New York session.

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