EUR/JPY set for worst day since March 2020 on reports Russian could invade Ukraine next week
|- EUR/JPY has been under intense selling pressure in recent trade as reports suggest Russia may invade Ukraine next week.
- The pair has slumped all the way to the 130.70 area and is down about 1.4% on the day.
- That would mark its worst one-day performance since March 2020.
EUR/JPY slumped to session lows well below the 131.00 level in recent trade as market participants dumped their euros and piled into the yen on reports that Russia is set to invade Ukraine as soon as next week. The PBS NewsHour reporter who broke the news on Twitter said that Russian President Vladimir Putin had already decided to invade and communicated plans to the Russian military. In the immediate aftermath of the reports breaking, news emerged that the UK and EU will be evacuating embassy staff and are urging citizens to leave as soon as possible. The US is also reported to be looking at reducing embassy staff and removing its observers to the OSCE mission to Ukraine.
EUR/JPY now trades in the 130.70 area, down some 1.4% on the day, putting the pair on course for its worst one-day performance since March 2020. The euro is being dumped given its economic vulnerability to a significant reduction in Russian gas imports, upon which the continent is reliant for its energy consumption. The yen is being bought as a result of its typical safe-haven status. EUR/JPY may well dip back to pre-hawkish ECB meeting levels under 130.00 next week and, if war begins, could head towards Q4 2021 lows in the 127.50 regions.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.