Reuters
Euro volatility jumps as Russia orders troops to Ukraine regions
The euro one-month volatility level jumped on Tuesday to its highest in 15 months, as the single currency was hit by rising risk aversion amid a gas price surge and escalation of tensions in Ukraine. Russian President Vladimir Putin ordered troops to two breakaway regions in Ukraine, sending the euro one-month volatility to its highest level since November 2020, as the West vowed sanctions in response to Putin’s troops in Ukraine. “The surge in European gas prices and the rise in concerns over Russian supplies to the region poses a risk to growth in Europe and therefore has the potential to significantly impact the timing of ECB (European Central Bank) policy tightening going forward, which is a EUR negative factor,” said Jane Foley, head of FX strategy, at Rabobank in London.
