Euro Steady As Tension In Ukraine Worsens

The euro remained below $1.30 on Tuesday despite encouraging trade data out on Monday. The common currency traded at $1.2961 at 10:00 GMT with the Fed’s upcoming meeting and the crisis in Ukraine continuing to weigh.

Reuters reported that the bloc’s trade surplus increased annually in July due to growing exports. The region’s trade surplus rose to 21.2 billion euros, with exports rising 3 percent and imports increasing by just 1 percent. The figure far surpassed last year’s July trade balance of just 18 billion euros, suggesting that the eurozone economy may have received a bit of a boost in the third quarter.

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The surplus was largely attributed to an increase in exports to the Unites States, China and Britain, while the bloc’s deficit with Russia grew to 31.7 billion euros  from January to June. With sanctions limiting the European nations’ transactions with Russia, exports to the nation waned.

Hopes of ending the conflict in Ukraine and lifting sanctions against Russia were dashed on Monday after the ceasefire agreement in Ukraine was violated. The renewed fighting claimed six civilian lives and left a further 15 wounded, marking one of the largest losses of civilian lives since the conflict began.

German Chancellor Angela Merkel has been trying to persuade her Russian counterpart Vladimir Putin to withdraw his troops from Ukraine and continue working toward a peaceful political solution. However, Ukraine’s recent agreement to push through a trade agreement with the eurozone has heightened tension between the West and Russia, and prompted the Kremlin to threaten to restrict trade with Ukraine in retaliation.