The euro rebounded yesterday and is still strong against the dollar and the pound due to easing tensions between Russia and Ukraine. Yesterday afternoon, President Putin said that Russia does not want war and has put forward proposals for a negotiation process. Russia has also said that some of its troops are returning to their bases.
Despite this, many are sceptical about Russia’s response, including the Ukrainian foreign minister. The euro could continue to react to the narrative surrounding tensions at the Ukraine border.
Yesterday, data revealed that the ZEW economic index for Germany rose in February, showing that analysts expect that the easing of restrictions will help economic recovery. Later today, industrial production figures for the eurozone will be released.
