EUR/USD looks to drop near 1.0850 on Ukraine crisis, hawkish ECB minutes
|- EUR/USD is eyeing more downside as DXY strengths on discussions of restoration to neutral rates.
- The shared currency has failed to capitalize on hawkish ECB minutes and decent Retail Sales.
- Members of the UN Human Rights Council voted in favor of ceasing Russia as an associate.
The EUR/USD pair has displayed a six-day losing streak and is likely to extend losses on Friday amid expectations of escalation in the Ukraine crisis after Russia ceases to be a member of the United Nations (UN) Human Rights Council. The members of the UN Human Rights Council voted in favor of stripping Russia from the members' list after the Russian rebels committed war crimes in Bucha, Ukraine. As world nations are isolating Russia from major communities, Russian leader Vladimir Putin could de-escalate progress talks with Ukraine, and the Ukraine crisis may continue to elevate further.
Meanwhile, the hawkish European Central Bank (ECB) minutes of March’s monetary policy meeting have failed to cushion the shared currency. Most of the ECB policymakers have favored immediate action through monetary policy to corner the galloping inflation. Apart from that, the ECB should halt the Asset Purchase Programme (APP) as the stated objective behind its launch has been achieved.
Along with the hawkish ECB minutes, the shared currency has also failed to capitalize upon the outperformance of the Euro Retail Sales. The Eurostat reported Retail Sales at 5%, higher than the preliminary estimate of 4.8% but significantly lower than the previous print of 8.4%.
On the dollar front, the US dollar index (DXY) is eyeing a trigger, which will drive the asset towards the much-awaited resistance of the 100.00 figure. Federal Reserve (Fed) policymakers have started favoring the restoration of policy rates to neutral amid rising inflation and an objective of self-dependent economy.
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.