EU Foreign Representative Kallas says she is not optimistic regarding potential progress in peace talks with Russia

• Strong statements from Hungary indicate they will not change their stance on Russian sanctions today.

The comments from EU Foreign Representative Kallas suggest heightened tensions and a lack of progress in peace talks with Russia, which could signal a prolonged geopolitical standoff. This is significant as strong statements from Hungary reaffirm its commitment to the current Russian sanctions, indicating that any potential for easing sanctions is further away. Such developments typically bolster safe-haven assets like gold and may weigh on risk-sensitive currencies such as the EUR and GBP.