Reports are coming out that Russian president Vladimir Putin and Ukrainian president Petro Poroshenko have agreed on a ceasefire. This is a “permanent” ceasefire in the Donbass region. The statement comes from the Ukrainian side, not from Russia. From Russia, there is only a report about a conversation between the two leaders.
Confirmation is still needed, but EUR/USD is already on the rise.
Update: 5 reasons to fade the Ukraine-Russia ceasefire.
European stock markets are on the rise, including the Russian one. The Russian rouble is recovering. German bond yields are rising on this is “risk on” environment.
The pair is currently trading at 1.3150, the highest so far this week, and a leap from 1.3125 seen earlier.
Note that if there is no confirmation from Russia or a breakdown of the ceasefire, these moves could backfire.
US president Barack Obama is currently visiting Estonia, an ex-Soviet country that is a NATO member. A statement from Obama is expected soon.
Earlier, euro-zone services PMIs disappointed and this left the pair drifting in the low range ahead of tomorrow’s all-important ECB meeting.
Earlier in the week, the situation clearly deteriorated, with shivers from the Cold War.
The EU basically laid out an ultimatum earlier in the week, threatening more sanctions.
Update: the pair is sliding back under the 1.3150 resistance line. The talk is about a “permanent” ceasefire.
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