The euro’s losses have been relatively well contained so far, although analysts at ENG believe that the EUR/USD could fall further as investors fully assess the ramifications of the weekend’s events.
Investors wonder if Europe will be willing to cut Russian oil and gas imports
“There have already been some reports from Europe examining Russian energy quotas/caps. It is clear that Europe would have to pay much higher prices for its energy in such a scenario and growth forecasts would have to be lowered.”
“It’s a great macro week for the euro given the February eurozone CPI release on Wednesday (French CPI has already surprised to the upside). But given developments in the east, we doubt a stronger eurozone CPI will may have the potential to affect ECB optimism is enough to reverse an otherwise bearish bias for EUR/USD.”
“EUR/USD briefly retested the 1.1110/1120 lows during the early hours of the session. The pair looks skewed to 1.10 this week.”
Source: Fx Street
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