Euro Ticks Higher on Biden-Putin Summit

On Monday, the euro edged higher against the greenback as market risk sentiment rebounded from the news of a potential US-Russia summit.

The EUR to USD exchange rate rallied 0.38% to $1.14 after losing some ground in early trade.

Subsequently, American President Joe Biden has accepted “in principle” a gathering with Russian President Vladimir Putin.

This meeting could set an avenue to avert a looming invasion directed by Moscow. Correspondingly, the euro benefitted from the possible diplomacy.

The threat of a Russian invasion has kept risk-sensitive currencies on edge for several weeks.

At present, Moscow still insists that it has no plans to invade Ukraine.

Elsewhere, German producer prices, a leading indicator for inflation, soared 25.00% year-over-year in January.

The figure outpaced the average analysts’ estimate of 24.20%, benefitting the euro currency.

Consequently, it followed the trend of a steep jump for the fourth month in a row.

In October, November, and December, German PPI posted a climb of 18.40%, 19.20%, and 24.20%, respectively.

Then, energy costs significantly surged 66.70% compared to the same period last year.

At the same time, producer prices registered a monthly increase of 2.20%, beating the expected 1.50%.

Regardless, the data declined from 5.00% in December, yet it still supported the single currency.

Moreover, the improving demand for services fueled business activity across Germany’s private sector to a six-month high this month.

Correspondingly, the country’s services purchasing managers index hiked to 56.60 in February. It significantly inched up from the anticipated 53.00 and 52.20 in the prior month.

In line with this, German composite PMI rose to a six-month high of 56.20. It is higher than the expected 54.30 and the previous 53.80.

Euro to Yen Exchange Rate Rises

Meanwhile, the euro also gained its pace against the Japanese yen. The EUR to JPY exchange rate improved 0.25% to ¥130.52.

Opposite to the positive European data, Japan’s services PMI slipped to a low of 42.70, weaker than the recent result of 47.60.

Regardless, the yen strengthened against the greenback. The USD to JPY exchange rate plummeted 0.10% to ¥114.87.

Accordingly, the US dollar index decreased 0.24% to $95.81 as traders turned to safe-haven currencies.

Then, the GBP to USD exchange rate rose 0.31% to $1.36 as the USD to CAD exchange rate diminished 0.15% to CA$1.27.

Furthermore, the USD to CHF exchange rate shed 0.39% to Fr.0.92, while the AUD to USD exchange rate jumped 0.60% to $0.72.