EUR/USD dips back to low 1.1320s, eroding day’s gains with Putin to recognise breakaway East Ukraine regions By Frank_Macro EURUSD RussianFederation
ssian President Vladimir Putin would sign a decree recognising the independence of separatist Ukrainian regions. Traders sold their euro and bought safe-havenamid concerns that official Russian recognition of the statehood of the Donetsk and Luhansk People’s Republics makes a military confrontation between Ukraine and Russia much more likely.
Russia and the breakaway regions located in Ukraine’s East may well now sign some sort of defense partnership. Given that the breakaway regions have been escalating the conflict with Ukraine’s military in recent days, that could see Russian forces dragged into the fray to directly engage the Ukrainian military in combat.
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