Dealers note talk that the Russian central bank may abandon its management of the rouble and let the currency float. Intervention to prop up the rouble has tended to weigh on EUR/USD, so on balance, my guess is a float would obviate the need for intervention and could be a mild net plus for the euro in the medium-term.
The knee-jerk reaction will be dollar positive in the near-term as flows out of Russia and into “hard currency” dominate in the early days.
EUR/USD is easing after the poor US economic dat with risk aversion once again at the fore.
