Euro Steady Above $1.35 With Markets Subdued
The euro held on to Friday’s gains with markets still on edge due to geopolitical tension around the world. The common currency traded at $1.3522 at 8:00 GMT as investors kept an eye on the brewing conflict in Ukraine.
Investors have been bombarded with news of instability across the globe, making many wary to trust the markets. Last week, a passenger airline was shot down in Ukraine near the border of Russia, sparking international controversy over whether pro-Moscow separatists used advanced missile technology provided by Russia, or the missile was a mistaken shot from the Ukrainian army.
With global leaders calling for an international investigation into the matter, most expect that the missile will be somehow tied to Moscow, which in turn will lead to further tension between Russia and the West.
The collapse of a ceasefire in Gaza, more protests in Libya and continued fighting in Iraq also dominated headlines this weekend, adding to the growing unease. However, Reuters reported that analysts see these incidents as localized risks for the moment.
Unless there is a major development that threatens destabilization on a larger scale, they will likely remain on the back burner.
The euro won’t have much economic data to trade on this week, though investors will be anticipating the region’s flash PMI figures, due out on Thursday.
Recent data from the bloc has shown an uneven, stalling recovery and ignited worries that the eurozone could slip into a period of deflation. The euro remains under pressure as investors expect to see the European Central bank ease further in the months to come in order to combat falling inflation.
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