Euro is under pressure and remains pinned at around this year’s lows with new speculation of Russian gas sanctions. Meanwhile, the dollar strengthened early on Monday as Treasury rates surged in anticipation of quick US rate rises.
Concerns about the economic toll of the conflict in Ukraine have weighed on the currency, which recently dropped to $1.1047, just a little above January’s lowest level at $1.0806, last reached in 2020.
On Sunday, Germany’s defence minister stated that the EU should consider restricting Russian gas importations, which may harm the economy and the euro in the wake of accusations of a criminal offence by authorities from Ukraine and Europe against Russia’s Armies. They were alleged to have massacred people in the town of Bucha, but Russia’s defence ministry said that wasn’t true.
In a report, Commonwealth Bank of Australia analysts predicted that more unpleasant tidings on the conflict or increased energy costs might see EUR/USD hit $1.0800.
A Weaker Dollar or Reduced War Tension Could Boost the Euro
Nevertheless, the publication of the minutes of the March Fed meeting is scheduled for Wednesday, and a weaker dollar after the minutes or reduced conflict tension might drive EUR/USD past an upward barrier of around $1.1150, they said.
In other markets, concerns about the fresh penalties on Russia kept the atmosphere conservative in early trading, and the dollar rose slightly higher versus the AUD and NZD as the commodities currencies’ surge slowed due to lower exportation costs.
The dollar index remained stable at 98.529.
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