EUR/USD Weakens, US Dollar Strengthens Ahead of Ukraine Summit
The EUR/USD pair pared some of its gains, dropping from levels above 1.1700 to 1.1685 in early European trading on Tuesday (August 19th). Currency volatility remained low, with mild risk-off sentiment ahead of the meeting between US President Donald Trump and Ukrainian President Volodymyr Zelenskiy, which will also be attended by several European leaders. However, their positions on the terms of a peace deal in Ukraine appear to remain significantly different.
Media reports suggest that Trump will try to secure a quick deal by pushing Zelenskiy to accept most of the terms Putin proposed in Alaska. This primarily includes the transfer of all Russian-controlled territory—a proposal Zelenskiy has previously rejected and is unlikely to receive support from European leaders.
The economic calendar on Monday is empty in both the eurozone and the US. Market focus is on a speech by European Central Bank (ECB) President Christine Lagarde on Wednesday and, most importantly, a speech by Fed Chairman Jerome Powell on Friday. Given the latest macroeconomic data, the risk is that Powell appears too hawkish, which could dampen expectations of a Fed rate cut in September, which is currently widely anticipated by the market. (ayu)
Source: Newsmaker.id
