Euro slips as Hormuz firefight revives US Dollar demand
Following the long bank holiday weekend, investors are slightly alarmed by the latest US military actions in Iran, causing oil prices to rebound around 4% from their lows hit on Monday (and around 2% on the day). That, in turn, has seen index cash and futures trim a good chunk of their gains made since markets closed on Friday.
The US dollar has stalled amid the increasingly complex situation in the Middle East. Donald Trump has stated that negotiations with Iran are going well, saying that the outcome will be either a major deal or no deal at all.
Euro: Limited upside against US Dollar within neutral band – UOB
The Euro to Dollar (EUR/USD) exchange rate traded at 1.1643 on UK Bank Holiday Monday, stabilising after slipping from May highs near 1.18. Despite the recent pullback, the pair remains more than 2.5% above its September 2025 lows and has broadly held within a 1.15-1.20 range for much of the past year.
EUR/USD Price Forecast: Near-term tone remains bearish as 20-day EMA slopes downwards
The trading week begins with EUR/USD showing signs of short-term strength, posting a gain of more than 0.4% during the first session. This move has started to suggest a new short-term bullish bias, mainly driven by progress in Middle East negotiations and the decline in US bond yields.
Euro rallies as Iran ceasefire hopes crush the US Dollar
EUR/USD began the week around 1.1600. The main currency pair closed last week virtually unchanged.
Euro: Downside risks against US Dollar towards 1.1400 support – BBH
Euro: Neutral range consolidation versus US Dollar – UOB
Euro holds early gains against US Dollar amid US-Iran deal hopes