Euro-Dollar Jumps on News Ukraine Accepts Amended U.S. Peace Deal
- Written by: Gary Howes
A real step has been taken to end the war in Ukraine.
The euro rose after headlines landed that Ukraine had agreed to an amended version of the U.S. peace plan.
ABC News reports that although "minor details" still need to be resolved, "the Ukrainians have agreed to the peace deal".
By agreeing to the terms, there's a very real landing zone for a peace deal, even if Russia is still resisting.
Crucially, Ukraine will cede to Russia's demands to cap the size of its army, but it wants that cap at 800K versus Russia's proposed 600K.
Meanwhile, a spokesman for Dan Driscoll, the U.S. Army secretary who is facilitating talks with Russian and Ukrainian delegations in Abu Dhabi, said the talks were “going well”.
The strengthening euro suggests markets see a landing zone.
The euro-to-dollar exchange rate has rallied half a per cent on the day and now trades at 1.1580.
Eastern European currencies have been the closest proxy for exposure to the fallout from Russia's invasion of Ukraine, falling the hardest in the opening days of the conflict.
It stands, therefore, that they're the bigger winners on any hopes of a cessation in hostilities.
Euro-dollar is, meanwhile, the most liquid proxy for the peace trade.
The White House has since confirmed that a peace deal between Russia and Ukraine is close.
Karoline Leavitt, Donald Trump’s press secretary, said there were a “few delicate, but not insurmountable, details” that must first be sorted out.
She said further talks would take place between Russia, Ukraine, and the U.S.
