- Russian ruble recovery continues and it hits a 10-day high
- The new week starts on a stronger risk sentiment
- German economy expected to grow by 3.6% in 2022
- ZEW Economic Sentiment figures for Germany and the Eurozone eyed
The Ruble Euro (RUB/EUR) exchange rate extended the bounce from the all-time low to build on the small gains from the previous week. The pair gained +8.15% on Monday, settling at €0.007564, towards the high of the day.
At 08:00 UTC AM, RUB/EUR trades up +7.65% at €0.008143 building upon gains from Monday’s trading session.
Stronger risk sentiment buoyed the Ruble against a basket of other major currencies.
Meanwhile, according to the German finance ministry source, the local economy is still projected to grow by 3.6%, but without taking into account the impact of the Russia – Ukraine conflict.
Key event risks ahead include the Industrial Production in the EU, which according to the market consensus is anticipated to contract by -0.5% on an annual basis in January compared to +1.6% rises in December.
On a month-to-month basis, the output from factories across the EU is expected to rise by 0.2% in January versus the 1.2% previous reading due to supply chain strains.
ZEW Economic Sentiment figures for Germany and the Eurozone are also expected to weigh in on the currency exchange rate. The economic sentiment in Germany improved significantly after it rose to 54.3 in February due to easing COVID restrictions.
However, the additional damage caused by the Russia – Ukraine conflict is going to deteriorate the latest ZEW economic sentiment.