Euro affected by Russian fears
EUR/USD continues to bobble along, bouncing off the intraday low created when Mario Draghi first announced the current plans for tackling euro strength and kick starting the eurozone economy. This morning will also see the release of the latest German ZEW economic sentiment figures that could add some direction to the current rate.
As my colleague David Madden stated yesterday, tensions surrounding the standoff between Ukraine and Russia have risen after the deadline for Ukraine to pay off its outstanding debts to Russia was reached. As things currently stand, the dispute over the increased rate with which the Russians are now charging their neighbour is the crux of the issue. As a consequence of the deadline being reached, Russia has now turned off the taps to Ukraine. The Ukrainian leader now has to deal with a reduced energy supply while trying to engineer a ceasefire in the north of the country.