EUR/CHF briefly traded above 0.945 as markets reopened from the weekend but has since given up all gains and is back at Friday’s 0.941 level. That confirms markets did not see any reasons to price in greater optimism on the peace deal after yesterday’s Washington summit, ING's FX analyst Francesco Pesole notes.

Euro’s correction may be exacerbated by positioning re-adjustments

"The euro softened against most G10 currencies, though higher-beta European currencies such as CEE FX and Scandies held steady, suggesting investors remain broadly constructive on geopolitical de-escalation. Also, this may be an indication that the euro’s correction may well be exacerbated by positioning re-adjustments."

"Based on the USD view above, we see some upside risks from here through the rest of the week in EUR/USD. A return above 1.170 remains quite possible before the end of this week."