The euro was under renewed depreciation pressure yesterday. The question of which further sanctions the EU countries will impose on Russia and what the effects will be for the EU economy are likely to have put pressure on the single currency, economists at Commerzbank report.

Further sanctions to be expected

“While the risk of an import stop of individual energy commodities or even a complete energy embargo persists EUR is likely to struggle.”

“It is likely to be of little help that the ECB is expected to announce the end of its expansionary monetary policy for year-end. In these uncertain times who knows what else might happen until then. The risk of the ECB changing its mind at the last minute remains in place. And for that reason, it is difficult to imagine that EUR should recover on a sustainable basis short-term.”