European Council president Charles Michel said on the weekend that further sanctions were “on their way”for Russia, citing an apparent slaughter in Bucha.
EU ambassadors are expected to discuss measures on Wednesday.
The thinking is that the these will be to close identified-gaps in prior sanctions but there is also a push for new sanctions on oil and gas. Germany's defense ministry also said gas sanctions must be discussed.
While sanctions hurt Russia, they also damage the eurozone economy and that has been a headwind for the euro. It's down 63 pips to 1.0991, which erases all of last week's gain. The catalyst for that gain was a shift to a more-hawkish stance by some ECB members on rising inflation numbers.
The set up of higher eurozone inflation and lower growth will continue to be a tough one to navigate in the FX market.
