The Euro currency pair has once again bounce back to market price and is set for a strong recovery following the ongoing peace talks between Russia and Ukraine. EUR/USD and other Euro pairs were massively bullish yesterday with the news of Russia and Ukraine presidents meeting in Istanbul to discuss a peaceful resolution of the conflict.
The face-to-face talks yesterday in Istanbul between Russia and Ukraine had given some hopes of recovery to Euro again. Russia had pledged during the meeting to scale down military operations around the Ukrainian capital of Kyiv. Ukraine, on its part, proposed to adopt a neutral status.
Euro no doubt has been down to its lowest value for the past four weeks following the outbreak of the war. As expected, the war had so much affected the economic activities in Europe. This is because Russia, who had been the significant oil supplier to the European countries, could not easily do so and were bound to increase further costs leading to the drastic fall of the Euro in the market price.
However, the positive news about the war ending again if the peace talks resolutions are fulfilled will benefit the Euro more than any other currency pair, given Europe's proximity to the conflict zone and heavy reliance on the Russian energy supply.
EUR/USD, which tested a historical low at 1.08015 just four weeks ago following the way outbreak, is currently on a strong uptrend recovery. Just yesterday alone, there was over 220 pips addition on EUR/USD pairs which took the price of this pair from 1.09700 to a new ATH at 1.11305.
The dollar index had fallen by 1% to 97 from last week's ATH
Nevertheless, there are still few reports of continued attacks despite yesterday's peace talks. Speaking on this, Ukrainian President Volodymyr Zelensky said there were promising signs from peace talks held in Istanbul on Tuesday. Both parties are set to embrace a ceasefire and withdrawal of troops. In his words: "we can say the signals we are receiving from the talks are positive, but they do not drown out the explosions of Russian shells. We hope that the recent development will afford EURO a more significant advantage to regain the losses made so far since the beginning of the war.” Hence, many investors may consider this the best time to buy Euro.