As a popular safe-haven asset amongst investors, the US Dollar soared as Russia began its attack on Ukraine, with the DXY closing 0.9% higher on Thursday.
In particular, EUR/USD could be at risk for taking the brunt of the turmoil being created in financial markets, as the pair broke below the key 1.12 level, and was briefly trading at 20-month lows. Although the forex major did pare losses during the latter half of the day, Friday’s US PCE figures and the potential for further conflict could see the pair retest yesterday’s lows, opening the door to a deeper pullback.
Check out the latest insights into EUR/USD from one of our senior analyst’s, other important USD pairs to keep an eye on heading into the weekend: