Euro losses have been relatively well contained so far, though analysts at ING do believe that EUR/USD could fall further as investors fully assess the ramifications of weekend events.

Investors wonder whether Europe will be prepared to curtail imports of Russian oil and gas

“There have already been some reports of Europe looking at quotas/limits on Russian energy. Clearly, Europe would have to pay a lot higher prices for its energy under such a scenario and growth forecasts would have to be downgraded.”

“It is a big macro week for the euro given the release of February eurozone CPI on Wednesday (French CPI has already surprised on the upside). But given events to the east, we doubt stronger eurozone CPI/potential for ECB hawkishness will be enough to turn around an otherwise bearish bias for EUR/USD.”

“EUR/USD briefly retested the 1.1110/1120 lows overnight and barring any surprise break-through in Ukraine-Russia talks, EUR/USD looks biased to 1.10 this week.”