Euro slips over Ukraine fears

The euro is off versus the US dollar as concerns over tensions in Ukraine have prompted traders to buy safe haven assets.

The euro is trading at $1.3767, down 0.24%; traders don’t like international tension, and the possibility of war between Russia and Ukraine has encouraged them to buy safe haven currencies like the US dollar.

The Russian rouble has hit an all-time low versus the US dollar and the euro today; this will give you an indication of the panic selling on currency markets.

The eurozone revealed that final manufacturing purchasing managers index came in at 53.2 in February in line with expectations. Ordinarily this would boost the euro but the possibility of a war in Ukraine has shown stronger influence, and while tensions run high the euro will remain under pressure.

Mario Draghi of the European Central Bank stated the eurozone is not at risk of deflation; this rules out further interest rates cuts.

The euro is finding trendline resistance at $1.3824. It has support around the $1.3771 and the next support level at $1.3740, which is the 50-day moving average.

Spot FX EUR/USD chart

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