EUR: Optimism over a potential ceasefire/peace fades – ING

EUR/USD is becalmed. It's fair to say that the optimism over a potential ceasefire/peace deal in Ukraine is now fading, as evidenced by EUR/CHF dropping back down to 0.9370, ING's FX analyst Chris Turner notes.

EUR to trade in a tight 1.1620-1.1670 range

"Russian Foreign Minister Sergei Lavrov's assertion yesterday that Russia and China would have to be part of any future security guarantees suggests the West and Russia remain far apart. Indeed, it feels like the next move here is for Washington to swing back behind secondary sanctions. We note oil and natural gas have gone bid over the last 24 hours. That's a mild euro negative."

"We may see another tight 1.1620-1.1670 trading range in EUR/USD today, with the biggest chance of a breakout remaining Powell's speech tomorrow."