The EUR/USD decline stalled just held of 1.0800, before consolidating between the 1.0850/00 zone. Economists at OCBC Bank recommend selling any bounce in absence of any progress in reaching a truce or ceasefire between the Russian and Ukrainian delegations.

ECB decision unlikely to provide sustained relief

“Barring a clear improvement in the geopolitical conflict, the playbook for the pair should be to sell on rallies. In this case, expect selling pressure to pick up above 1.0900.”

“Further downside cannot be ruled out, with the ECB decision on Thu unlikely to provide sustained relief.”