Euro steady after G-7 pledge oil ban

G-7 commits to ban Russian oil

The euro has started the week quietly, although there have important developments in the West’s sanction battle with Russia. On Sunday, G-7 leaders pledged to phase out or ban the import of Russian oil.

As the war in Ukraine continues, the West has ratcheted up its sanctions against Moscow. Some European countries, such as heavy-weight Germany, have been reluctant to embrace an outright ban on Russian oil, since 25% of Germany’s oil comes from Russia. The war has taken a toll on the eurozone economy, and there are concerns that a complete ban on Russian oil would tip Germany into a recession.  The G-7 commitment to “phase out” Russian oil is a compromise that will allow eurozone nations to find alternative sources as they cut back on Russian oil imports.

Despite the slowdown in eurozone growth, inflation in the bloc isn’t showing any signs of easing. In April, CPI remained at a record 7.5% YoY, edging up from 7.4% in March. The combination of rising prices and weaker economic growth has raised fears of stagnation and increased uncertainty about the economic outlook. This has taken a toll on the euro, which has plunged around 14% since June 1st.

The dovish ECB has been slow to respond to the new landscape in Europe, although there are more calls within the ECB to raise rates at least up to zero. On Monday, ECB Governing Council member Olli Rehn, who is head of the Finnish central bank, weighed in and urged the ECB to start raising rates in July. ECB President Lagarde cannot afford to continue ignoring soaring inflation and the ECB will have to hike rates in the coming months.


EUR/USD Technical

  • There is weak resistance at 1.0557. Above, there is resistance at 1.0632
  • 1.0473 is providing support, followed by 1.0398

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.