EUR/USD looks to drop near 1.0850 on Ukraine crisis, hawkish ECB minutes

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.