Euro Climbs Amid ECB Rate Hike Expectations, Russia-Ukraine Peace Talks
March 28 2022 - 03:41AM
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The euro appreciated against its major counterparts in the
European session on Monday, as investors focused on peace talks
between Russia and Ukraine to be held in Turkey this week, while
expectations for rate hikes by the European Central Bank increased
amid high inflation.
Ukrainian President Volodymyr Zelenskiy said that his government
is ready to consider Russia's demand of adopting a neutral status
to resolve the conflict.
"Security guarantees and neutrality, non-nuclear status of our
state. We are ready to go for it," Zelenskiy said in a video
address on Sunday.
Turkish President Tayyip Erdogan spoke with his Russian
counterpart Vladimir Putin on Sunday and called for a ceasefire
between Russia and Ukraine, the implementation of peace and the
improvement of humanitarian conditions in the region.
In an attempt to diffuse tensions, German Chancellor Olaf Scholz
said that neither NATO nor U.S. President Joe Biden intends to seek
regime change in Russia.
Money markets are expecting four quarter-point rate hikes by
March next year that would take the ECB's deposit rate to 0.50
percent.
The euro firmed to a 4-day high of 1.0302 against the franc and
a 6-1/2-year high of 137.54 against the yen, off its prior lows of
1.0215 and 133.97, respectively. If the euro rises further, it may
find resistance around 1.05 against the franc and 139.00 against
the yen.
The euro rose to 1.0999 against the greenback and 0.8368 against
the pound, up from its early nearly a 2-week low of 1.0945 and a
4-day low of 0.8321, respectively. The euro is likely to face
resistance around 1.12 against the greenback and 0.86 against the
pound.
The euro rebounded to 1.4635 against the aussie, 1.3734 against
the loonie and 1.5859 against the kiwi, after falling to a
4-1/2-year low of 1.4535, 6-1/2-year low of 1.3673 and a 3-week low
of 1.5751, respectively in prior deals. The euro is seen finding
resistance around 1.48 against the aussie, 1.39 against the loonie
and 1.62 against the kiwi.
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