Further Downside on the Cards
EUR/USD is trading close to 1.1200, as the US dollar remains strong, amid a return of risk-off flows after the Russia-Ukraine peace talks end with no progress. The US Treasury yields advance as firmer US inflation expectations. Russia-Ukraine updates, German inflation and US ISM PMI eyed.
GBP/USD is defending 1.3400, having paused its rebound from two-month lows. Cable consolidates amid a cautious market mood and broad US dollar rebound, absorbing the latest Russia-Ukraine developments. UK/US PMIs awaited.
GBP/EUR reversed lower from its near 1.1900 closing levels last Friday to climb back into the mid to high 1.1970s on Monday.The euro underperformed as Western nations toughened sanctions against Russia, sparking fears of retaliation and energy supply disruptions.