The EUR/USD pair managed to recover some of its earlier losses during late Asian trading on Monday, though it was still down by 0.25%, sitting near 1.1780.
The euro experienced a drop against the US dollar as investors sought safe-haven assets in response to heightened tensions from the conflict involving Iran, Israel, and the United States that escalated over the weekend.
Today’s Euro Price
The following table highlights the euro’s performance against major currencies today. It shows that the euro was the weakest among them, particularly against the US dollar.
A sequence of airstrikes and reports of attacks on tankers in the Strait of Hormuz have driven up oil prices, likely resulting in increased energy costs down the line. This doesn’t bode well for the euro, which finds itself at a disadvantage considering the eurozone’s heavy dependence on oil imports for energy.
On the home front, investors are eyeing the upcoming preliminary figures for the Eurozone Harmonized Consumer Price Index (HICP) due on Tuesday. This inflation data could have a significant impact on the market’s perception of the European Central Bank’s (ECB) monetary policies. Recent data indicated a modest 2% growth in German flash HICP year-on-year, which is below expectations and a slight dip from the earlier 2.1%.
Meanwhile, the US Dollar Index (DXY), which gauges the dollar against six major currencies, relinquished some of its early gains but is still trading about 0.23% higher, around 97.85, in a generally risk-averse environment.
This week, traders will be looking closely at a range of U.S. employment data, especially the Nonfarm Payrolls (NFP) report for February. Additionally, on Monday, attention will be directed toward the US ISM Manufacturing PMI data for February, set to be released at 15:00 GMT.
