We are seeing a bit more of a reaction now after Putin's announcement earlier, with the euro being a notable mover as it falls by 0.6% on the day against the dollar currently. Price hit a low of 0.9908 and that is the lowest in two weeks for the pair, with the key support region around 0.9864-00 still one to watch.
As mentioned earlier, the news is a step up in terms of aggression by Russia and points to the fact that they will continue to keep their focus on the conflict in Ukraine. That doesn't exactly bode well for Europe considering the struggles seen recently as Russia pulls back on gas supplies and surging raw material prices *coughs in inflation *.
In other words, the economic pinch will likely last longer for Europe and it might even get worse over the coming months. That's an ominous signal for an economy that already looks to be sinking amid a rather bleak outlook for the year ahead.
