Breaking: EUR/USD gaps down to print fresh lows for 2022 on stark concers over the Ukraine crisis

• EUR/USD falls to fresh lows for 2022 following weekend headlines surrounding the Ukraine crisis. 
• Traders will look for updates surrounding the prospects of peace talks. 
• Risk-off start to week: Russia's Putin puts nuclear deterrence forces on high alert

EUR/USD dropped to 1.1118, a fresh low for 2022 as markets open risk-off due to the heightened tensions surrounding the Ukraine crisis.

However, there are also prospects of negotiations between Ukraine and Russia but there is no full picture on this as of yet. However, there are hopes of peace talks that balances out the nuclear noise in the markets. 

Putin said he was giving the nuclear readiness order because “top officials in NATO’s leading countries have been making aggressive statements against our country,” according to a report from Russian state news operator TASS.

• Ukraine and Russia are set to hold negotiations at the Belarusian-Ukrainian border

Besides the Ukraine crisis, Euroland inflation data will be key and markets look for upside risks in Germany & the euro area in general. ''We expect core and headline inflation to reach new all-time highs, as food and energy prices continue to surge (we expect EZ headline at 5.7% YoY). Price pressures are broadening out, and the Ukraine conflict adds a substantial amount of upside risk to the inflation outlook,'' analysts at TD Securities explained. 

At the end of the week, Nonfarm Payrolls from the US will be watched following an unexpectedly strong January report—despite the Omicron-led surge in COVID cases.

''We expect some of that boost to fizzle, though to still firm job growth pace. Seasonal adjustments were a factor last month and they will likely play a role again in Feb. We expect wage growth to slow to a still-strong 0.5% m/m pace,'' the analysts at TD Securities said.

EUR/USD weekly chart

Below these fresh 2022 lows, bears will look left to the weekly target near 1.1020.