You've landed on our UK website.
Click here to visit our USA website.

If you are having difficulty locating the information you require, we're here to help. Just get in touch and we will do our best to assist you.

Weekly Roundup: Euro slips amid fears of an escalation in the Russia-Ukraine war

currency-newsWeekly Roundup: Euro slips amid fears of an escalation in the Russia-Ukraine war
After enjoying some success on Monday, the euro then faced headwinds as the week went on amid escalating tensions in the Russia-Ukraine war.

Leaders in Russian-occupied territories in Ukraine announced plans to hold referenda on joining the Russian Federation. Subsequently, Vladimir Putin declared a partial mobilisation and threatened nuclear action. Fears of an escalation of the conflict weighed heavily on EUR, as the war is straining the Eurozone economy and EU political unity.

The single currency experienced some volatility on Thursday, eventually wavering lower due to a larger-than-forecast fall in eurozone consumer confidence.

Finally, Friday’s Eurozone PMI reports put more pressure on EUR. Both manufacturing and service sector activity contracted more than expected, with overall business activity shrinking for the third consecutive month.

Updates from the Russia-Ukraine war will likely continue to affect EUR exchange rates this week.

Additionally, there are a number of speeches from European Central Bank (ECB) officials. Any hawkish comments could support the euro.

The most impactful event of the week may well be the Eurozone’s flash inflation rate on Friday. Economists expect the CPI to jump from 9.1% to 9.7%, potentially boosting EUR through ECB rate rise bets.
Philip McHugh

Philip McHugh

Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure

Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)

Check our exchange rate

Thanks, we'll be in touch.

Check your inbox - one of our currency experts will be in touch to complete your quote.

If you want see our online exchange rates straight away, simply register online & log in.