Deadly Gunfight in Ukraine Threatens Ukraine Peace Deal

A deadly gun attack in eastern Ukraine at the weekend threatens to derail a peace deal to prevent a broader conflict in the region and should keep geo-political risk high on the agenda for markets, analysts say.

At least three people were killed in a gunfight on Sunday near a Ukrainian city controlled by pro-Russian separatists, putting at risk a deal agreed in Geneva last week to end a crisis in Ukraine.

In an interview with NBC’s ‘Meet the Press’ at the weekend, Ukraine’s interim Prime Minister Arseniy Yatsenyuk made it clear what needed to be done to stabilize the situation.

“If Russia pulled back its security forces and former KGB agents, this would definitely calm down the situation,” he said.

According to a report from Reuters, the pro-Russian separatists said armed men from Ukraine’s Right Sector nationalist group had attacked them. The Right Sector denied involvement, saying Russian Special Forces were behind the clash.

In an agreement signed in Geneva last week, the European Union (EU), Russia, Ukraine and the U.S. agreed that illegal armed groups would go home in a process to be overseen by Europe’s OSCE security watchdog.

via SOURCE

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza