24.05.202209:58 Forex Analysis & Reviews: IMF calls on to resist "geoeconomic fragmentation"

The euro is approaching new monthly highs. Meanwhile, the IMF has warned against "geoeconomic fragmentation" as the Ukrainian conflict goes on. According to IMF economists, countries should lower trade barriers to alleviate shortages and reduce the prices of food and other commodities.

Countries need to diversify imports to secure supply chains, IMF Managing Director Kristalina Georgieva said. The G20 countries need to improve the debt restructuring system to help address the vulnerabilities. "The costs of further disintegration would be enormous across countries. And people at every income level would be hurt — from highly paid professionals and middle-income factory workers who export, to low-paid workers who depend on food imports to survive," the IMF Managing Director emphasized.

Experts at the IMF believe that cross-border payment systems should be modernized. At the same time, countries should work together to create a public digital platform for handling remittances to reduce costs and improve safety. Above all else, nations must cooperate to confront climate change.

A sharp rise in the euro continues this week. For the bullish trend to extend, buyers should go above 1.0700, with targets at 1.0740 and 1.0780. This is where bulls might encounter strong resistance, especially since the instrument is overbought in lower time frames. If pressure on the euro increases, bulls will try to protect the 1.0650 level. If they fail, bears will push the price to the lows of 1.0600 and 1.0560.