EUR/USD faces pressure as Putin-Zelensky talks ruled out by Germany

EUR/USD slipped 0.2% to 1.0820 as German Chancellor Merz's statement ruling out Putin-Zelensky peace talks heightened geopolitical tensions in Europe. The announcement follows the unsuccessful Putin-Trump meeting, confirming no immediate ceasefire prospects in the Ukraine conflict. Markets are pricing in prolonged economic uncertainty for the eurozone, with potential for expanded sanctions against Russia weighing on European growth outlook. The euro found temporary support at 1.0815, the 50-day moving average, but faces resistance at 1.0850. Energy price concerns and potential supply disruptions continue to pressure the single currency. Traders are monitoring whether additional secondary sanctions will be implemented, which could further strain Europe's economy. The persistent conflict raises inflation risks through energy channels while dampening growth prospects, creating a challenging environment for the ECB's monetary policy decisions.