The euro weakened against both the pound and the dollar this morning due to Russia invading Ukraine. The single currency is set to remain volatile as more news unfolds.
The conflict has a direct effect on the European economy. Europe is reliant on Russian gas and sanctions from the West are already limiting or cutting the supply of this, which will have a large impact.
This could, in turn, have an impact on the European Central Bank’s approach to monetary policy. Two ECB officials will speak today, and it will be interesting to hear any comments about the conflict’s effect on the eurozone.
