Euro is struggling right now, trying to maintain the gains it eked out earlier in the session. However, that is proving a bit difficult, given the possibility of harsher sanctions against Russia over the whole issue of what’s happening in Ukraine.
As the situation in Ukraine continues to trouble just about everyone, the euro is struggling. The 18-nation currency lost ground yesterday, but is trying to eke out gains today. However, the European Union is still threatening Russia with harsher trade sanctions. This could impact Germany, a country which has strong ties to Russia — and acts as the main driver of the eurozone economy.
There are worries that sanctions against Russia could slow the already tepid eurozone economy. Euro is already struggling on the presumed policy divergence between the 18-nation currency region and its major counterparts. But, with Russia continuing to meddle in Ukraine, and now with the furor over what happened with the downed Malaysian airliner, there’s a lot of speculation that sanctions will be tightened.
For now, though, the euro is managing to hold on to small gains. But it’s still early yet in the US session, so it will be interesting to see how the day goes.
At 13:37 GMT EUR/USD is up to 1.3468 from the open at 1.3466. EUR/GBP is up to 0.7905 from the open at 0.7891. EUR/JPY is down to 136.5850 from the open at 136.6380.
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