Amid the worsening tensions from the ongoing Russia-Ukraine crisis, as more nations sanction Russia, the EUR/USD pair began today’s trading session lower than its Friday close of 1.1273 to open in the Asian session at 1.1122.
Market participants’ reaction to the ongoing geopolitical crisis thwarted demand for safe-haven assets and currencies like the US dollar, the Japanese yen, and the Swiss franc, as their riskier counterparts soared.
Over the weekend, world powers like the US, UK, EU, and Canada unanimously agreed to “prevent the Russian central bank from deploying its international reserves in ways that undermine the impact of our sanctions,” according to the Guardian.
The goal behind the sanctions is to starve the Russian government by crippling its assets. Meanwhile, the US imposed some additional sanctions on the European giant’s top ten financial institutions while also freezing the assets of Russian President Vladimir Putin and Russian ministers. Additionally, wealthy Russians (oligarchs) who share ties with Putin suffered a similar fate alongside a travel ban.
In other news, the Eurozone economic docket on Monday featured inflation data from Spain, with the country Harmonised Index of Consumer Prices (HICP) for February coming in at 7.5% y/y better than the 6.8% estimate. Meanwhile, the inflation rate jumped to 7.4% y/y higher than the 6.1% recorded in January.
Inflation Risks from Russia-Ukraine Crisis Yet to Be Felt in the Eurozone
The European Central Bank (ECB) recently warned that the Ukraine crisis could extend some downside risks to the Eurozone, adding that upside inflation risks have not begun to be felt. Commenting on the upcoming ECB meeting in March, analysts at Brown Brothers Harriman noted that they “expect the bank to confirm that PEPP will end as scheduled, we believe Lagarde and company will try to maintain maximum optionality to see how the situation unfolds.”
Meanwhile, US Fed speakers Bullard and Waller maintained their hawkish stances and favored a 50 basis point rate hike in the FOMC meeting scheduled for Friday.
You can purchase Lucky Block here. Buy LBlock
- Broker
- Min Deposit
- Score
- Visit Broker
- Award-winning Cryptocurrency trading platform
- $100 minimum deposit,
- FCA & Cysec regulated
- 20% welcome bonus of upto $10,000
- Minimum deposit $100
- Verify your account before the bonus is credited
- Over 100 different financial products
- Invest from as little as $10
- Same-day withdrawal is possible
- Fund Moneta Markets account with a minimum of $250
- Opt in using the form to claim your 50% deposit bonus
Learn to Trade
Never Miss A Trade Again
Signal Notification
Real-time signal notifications whenever a signal is opened, closes or Updated
Get Alerts
Immediate alerts to your email and mobile phone.
Entry Price Levels
Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.