EUR/USD is slowly saying goodbye to 1.11 levels again. Prolonged Russia-Ukraine war is set to weigh on the world’s most popular currency pair, economists at Commerzbank report.
“The market is likely to see the fact that Russian offensive operations are only happening in selected areas, whereas the Russian invaders are largely starting to dig in defensive positions. I think many market participants regard this as a signal for a prolonged war.”
“The longer the war continues the more likely it becomes that the real economic and inflationary effects above all for the eurozone will be significant. And that is why that prospect is negative for EUR/USD.”
EUR/USD weakens around 1.1050 as Ukraine woes intensify ahead of Lagarde.EUR/USD is trading close to 1.1050, on the back foot amid a broadly firmer US dollar. The risk-off flows remain at full steam, as the Ukraine-Russia conflict intensifies. Hawkish Fedspeak underpins the dollar. Lagarde and Powell are in focus.
GBP/USD battles 1.3150 amid risk-off mood on Ukraine crisis.GBP/USD is under pressure around mid-1.3100, undermined by the damp market mood amid fresh concerns over Russia’s invasion of Ukraine.The greenback benefits from a risk-off market profile while Fed-BOE policy divergence also adds to the weight on cable.
Gold sticks to modest gains near $1,925 area, lacks follow-through.Gold edged higher during the early part of the trading on Monday, though the intraday uptick lacked follow-through buying or strong bullish conviction. There seems to be no end in sight to the ongoing war in Ukraine, which rejected Russia’s calls to surrender the port city of Mariupol.