The confirmation of a full invasion of Ukraine sparked meaningful moves in FX. EUR/USD posted one of its largest one-day declines in several months as neared the 1.1100 level. Economists at MUFG believe that additional losses towards 1.10 are still feasible in the coming days.

Non-oil Europe suffers on Russia-Ukraine uncertainty

“Usually, the euro tends to be a better performer amongst G10 currencies during times of financial market risk-off events given the large current account surplus. But we are not seeing that now.”

“The rebound in risk sentiment following the sanctions announcements has resulted in safe-haven currencies weakening back. But the clearest pattern is the fact that European, non-oil related currencies have underperformed. We expect this to continue with a breach of 1.1000 plausible.”