The euro was falling yesterday and maintained its losses today as the mounting tensions between Russia and Ukraine and threat of involvement of Western countries in the conflict made Forex trades stick to safer currencies. The euro declined against the US dollar, but was able to outperform the Great Britain pound. The shared European currency managed to erase losses versus the Japanese yen.
It looks like Russia is growing the size of its military troops on the Crimea peninsula. The United Nations as well as various US and European politicians are demanding from Russian President Vladimir Putin to back off and preserve the sovereignty and integrity of Ukraine. US President Barack Obama is considering steps to isolate Russia both politically and economically.
Monday’s US macroeconomic data was surprisingly good, pushing the euro further down versus the dollar. The monetary policy meeting of the European Central Bank will be conducted this week, and it was expected that the ECB decision should affect the euro strongly. But the situation in Eastern Europe is likely to overshadow other news for some time.
EUR/USD dropped from 1.3758 to 1.3733 yesterday and traded at 1.3732 as of 4:42 GMT today. EUR/JPY dipped from 139.60 to 139.31, but bounced to 139.65 on the current trading session. EUR/GBP advanced from 0.8231 to 0.8239 on the previous session and traded near 0.8244 today.
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