EUR: Markets to tread carefully on Ukraine truce hopes – ING

After an initial positive spillover on the euro from news of Trump meeting with Putin next week, markets now need to assess how realistic a truce is, ING's FX analyst Francesco Pesole notes.

EUR to stabilise in the 1.166-1.170 area for now

"We expect they will tread carefully on the topic, considering there are few indications so far that Russia is ready to agree to a total ceasefire in Ukraine. The key gauges of market sentiment on this topic will be energy prices, EUR/USD, EUR/CHF and EUR/JPY."

"Back to EUR/USD, we could see some stabilisation in the 1.166-1.170 area for now. Next week’s US CPI will tell us whether another break higher is possible."