• Traders turn to the ECB to clarify the Fed's hawkish pitch and the renewed dovish stance.

EUR/USD is trying to correct higher in Asia. This follows the lead from yesterday's trading where the price settled just ahead of 1.08, the figure that was close to a 22-month low.

The turmoil in Ukraine has cast a shadow over Europe's economic outlook. Because of central bank divergence, the US Dollar is being preferred over the single currency. Investors weighed the impact of rising oil prices on global economic growth and the greenback rose Monday. They had reached a peak at a high of 14 years ago, but they are now starting to fall a bit. This is allowing for some relief to the euro in Tokyo on Monday.

The United States and its European allies are considering banning Russian crude oil imports. This sent Brent, the global benchmark, to $138bbls. The dollar index (DXY), which compares six global peers to the greenback, traded as high as 99.42 overnight. This sent the common currency down by 4% against the dollar after Russia launched what it called a "special military operations" in Ukraine.

ECB in Focus

The ECB must be flexible in order to avoid the economic consequences of the war on the eurozone. The US dollar is favoring the ECB, which makes 1.0800 more vulnerable in the coming days depending on how the ECB responds.

The week will be without Fed speakers because of the media embargo before next week's FOMC meeting. However, the market is priced for a 25-bp increase on March 16 to signal the beginning of the tightening cycle.