EUR/USD could rise as much as 5% if a Ukraine ceasefire is agreed followed by the resumption of gas supplies
- A potential ceasefire between Russia and Ukraine seems more likely.
- Trump and Russian President Vladimir Putin reportedly agreed to start negotiating an end to the war in Ukraine.
- will depend on the details of any agreement
- resumption of lower-cost gas supplies, if at all, will likely be a smaller proportion compared to before Russia invaded Ukraine in 2022
On the other hand:
- euro is at risk from US trade tariffs, and while the US economy remains strong
- “A ceasefire wouldn’t mean European’s structural problems will disappear.”
This article was written by Eamonn Sheridan at www.forexlive.com.
