Euro rises on hopes of progress in Ukraine peace talks

U.S. Dollar Index

U.S. Dollar Index is trading down 0.28% at 98.81

The euro rose on Tuesday on hopes of progress in peace talks between Ukraine and Russia despite soaring COVID-19 cases in China dampening risk appetite.

Further talks between Ukrainian and Russian negotiators to ease the crisis were expected on Tuesday after discussions via video ended with no new progress announced.

Brent futures extended losses on Tuesday, sliding to a two-week low as ceasefire talks between Russia and Ukraine eased fears of further supply disruptions.

“This reflects the hope that the talks between the Russian and Ukrainian negotiators might lead to an imminent and peaceful solution after all,” Commerzbank (DE:CBKG) forex analysts said in a note to clients in reference to the decline in oil prices.

The euro climbed 0.55% to 1.0999 against the dollar.

The U.S. Federal Reserve is set to raise rates for the first time since the pandemic at its meeting which concludes Wednesday, with traders looking for indications about the pace of future rate hikes.

The U.S. dollar index, which measures the greenback’s value against other major currencies, fell 0.3% to 98.808.

Analysts see a potential repricing in favour of the greenback should the Fed take a more hawkish than expected policy stance after its meeting, which ends on Wednesday.

The single currency weakened recently as the euro zone is far more dependent than other areas on Russian energy.

On technical fronts U.S. Dollar Index RSI stood at 69.68 and currently it is trading above all MA. So, BUY position can be taken with following target and stoploss:

TRADE SIGNAL – : U.S. Dollar Index – BUY: 98.75, TARGET: 99.07, STOP LOSS : 98.60

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