News Tech: The euro gave up some overnight gains on Thursday, after its biggest intraday gain since 2016, as traders waited for the European Central Bank and European Union leaders to do so. shed light on the bloc’s policy toward Russia’s invasion of Ukraine. The common currency on Wednesday benefited from a change in risk sentiment that boosted equity markets and bond yields, while also seeing oil prices plunge amid optimism about efforts diplomatic force to address what the Kremlin calls a “special operation” to disarm Ukraine.
The euro is widely seen as an indicator of Europe’s biggest security crisis since 1945 and hit a 22-month low of $1.0804 at the start of the week as investors expected a major impact on the economy. European growth. The foreign ministers of Russia and Ukraine met in Turkey on Thursday, the highest-level contact between the two countries since the start of the war on February 24, but in simultaneous hand-to-hand press conferences, they make it clear that they have made no progress.
Investors are now expecting the central bank to phase out its pandemic bond-buying program and raise key interest rates by a total of about 33 basis points before the end of the year. The ECB is lagging behind other major central banks such as the US Federal Reserve and the Bank of England in the post-pandemic tightening cycle that has weighed on the euro. Georgette Boele, the FX strategist at ABN AMRO, said in a note that she expects the euro to continue its downtrend and fall to or even below its dollar par.