EUR/USD is consolidating Monday’s steep losses around 1.0970.  Potential EU sanctions on the Russian gas imports may prevent the pair from recovering from yesterday's losses, economists at ING report. 

Nervously waiting for new sanctions

“At this stage, the euro’s performance is very strictly tied to the content of new sanctions the EU looks likely to impose on Russia; the bigger the implications for the energy market, the larger the impact on the euro.”

“Details of any new sanctions might not be released until tomorrow, and we expect the euro to remain unable to recover from yesterday’s moves unless the measures prove milder than expected.”

“EUR/USD could consolidate around 1.0900/1.1000 today.”