The trade in EUR/USD was lacking momentum on Monday. Economists at Commerzbank expect the shared currency to continue to struggle in absence of a ceasefire in Ukraine.

ECB might struggle with sounding more hawkish due to economic concerns

“As long as the European Central Bank (ECB) continues to seem quite hesitant in particular compared with a number of other central banks that is unlikely to help EUR much.”

“As long as the war in Ukraine continues and the risk of further sanctions remains in place the ECB might struggle with sounding more hawkish due to economic concerns.”

“Unless there is positive news from the negotiations between Ukraine and Russia, EUR will continue to struggle climbing back above the 1.10 mark against USD on a sustainable basis.”