Euro Steady At $1.38 Following ECB Hints At Easing
The euro was steady at $1.3815 on Tuesday morning after losing some of its strength on Monday due to ECB comments and tension in Ukraine.
The common currency retreated modestly after European Central Bank President Mario Draghi remarked that the bank would be forced to step in if the euro continued to climb.
The statements marked the first time the bank has shown real concern for the currency's value and caused investors to rethink their positions.
Also weighing on the single currency is the escalating tension in Ukraine, where many worry that a military confrontation between Ukraine and Russia is on the horizon.
Over the weekend, pro-Russian protesters stepped up their demonstrations, wearing unmarked military uniforms and attempting to take over more Ukrainian government buildings.
Accusations that the groups are tied to the Kremlin has driven a wedge deeper between Russia and the West and raised questions about whether or not Putin will send in troops to further dismantle the nation.
See also: Has Greece Returned to Former Glory?
On Monday, EU foreign ministers met to discuss how to increase sanctions on Russia.
For the moment, the focus will remain on individuals close to President Vladimir Putin, but France's Foreign Minister Laurent Fabius said the group may meet again next week to discuss the escalation of sanctions if talks between the EU, Russia, Ukraine and the US don't provide some type of resolution on Thursday.
Meanwhile, eurozone data helped confirm the ECB's expectations of moderate growth this year. According to The Wall Street Journal, the region's industrial production increased by 0.2 percent from January and 1.7 percent from a year earlier; in line with expectations.
However, when eurozone nations were analyzed individually, the data was concerning as several of the region's struggling, southern nations underperformed. Italy, Portugal and the Netherlands were among those who posted declines while Germany, France and Spain drove the figure upward with increasing output.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.