Investors stay focused on geopolitics. Escalating tensions between Russia and Ukraine could drag the EUR/USD pair down towards the 1.12 level, economists at Commerzbank report.

USD, JPY and CHF to remain in demand as volatilities are rising

“Monetary policy is taking a back-seat, and risk aversion is in the driving seat. As a result, volatilities are rising and the safe havens JPY and CHF are likely to remain in demand, as will the dollar.”

“If the situation in Ukraine escalates further, EUR/USD could therefore easily make another attempt towards 1.12.”