The EUR/USD exchange rate remains stable around the 1.09 level. Recent reports from Danske Bank highlight that the latest US February CPI figures came in softer than expected, with both headline and core inflation registering a month-over-month increase of just 0.2%, falling short of market consensus.

Analysts Kristoffer Kjaer Lomholt and Filip Andersson from Danske Bank suggested that should Russia agree to the proposed truce terms, the euro could gain traction against the US dollar. The stabilization of the Eurozone economy hinges not only on domestic factors but also on geopolitical developments.

Market participants are keenly observing the evolving situation as they anticipate potential volatility in the currency pair. Any progress towards peace could provide the necessary momentum for the euro to break past existing resistance levels.