The Euro recovered some losses and climbed above 1.1420 against the US Dollar. However, EUR/USD seems to be facing hurdles near 1.1475 and 1.1500.
Euro weakens to near 1.1400 as US-Iran escalation boosts US Dollar
The EUR/USD ended the week on the back foot, surrendering its earlier poise during Friday's session. From mid-week until that point, the pair had displayed a rather unexpected degree of composure, even as tensions in the Middle East flared up again.
The Euro to Dollar (EUR/USD) exchange rate is holding close to 1.1415, despite renewed geopolitical tensions in the Middle East that would normally be expected to support the US Dollar. UniCredit believes the Dollar's muted response reflects a combination of higher global bond yields, resilient equity markets and fading expectations.
The Euro to Dollar (EUR/USD) exchange rate is trading around 1.1415 after losing more than 2% during June and struggling to build a sustained recovery in July. Goldman Sachs has lowered its six- and 12-month EUR/USD forecasts to 1.12, compared with previous targets of 1.18 and 1.20 respectively.
The Euro to Dollar (EUR/USD) exchange rate has slipped back towards 1.1415 as investors continue to favour the US Dollar following resilient US economic data and expectations that the Federal Reserve will keep interest rates higher for longer. HSBC believes EUR/USD is likely to face renewed downside pressure as markets shift their focus.
EUR/USD continues to trade within an increasingly compressed range, with both the weekly and monthly opening ranges developing just above a major support zone. The repeated failure to break lower has left the April downtrend vulnerable near-term, while buyers still need a decisive breakout to suggest a more durable low is in place.
EURUSD is still holding above the Intraday support at 1.1380 while the advance scenario still applies. Traders need to watch the support of 1.1380 as the market still has a chance to move higher.
The Euro to Dollar (EUR/USD) exchange rate has edged higher to around 1.1450, extending its recovery from this week's lows as the US Dollar softened modestly. UOB believes the Euro retains a mild upside bias in the near term, although it expects gains to be capped around the 1.1450 level.
Euro: Yield spreads hint at recovery against US Dollar – MUFG
Euro: Narrow path for sustained strength against US Dollar – ING
Euro: Range trade bias intact against US Dollar – UOB