Oil falls after mixed messages from the US and Iran. EUR/USD rises after hotter Eurozone inflation & amid a weaker USD.
Euro: Softer against US Dollar as yields climb – Danske Bank
The first week of June begins with the euro showing renewed signs of short-term weakness. This can be seen in recent EUR/USD price action, with the pair falling more than 0.2% during the session.
EUR/USD slips as renewed Middle East tensions boost the Greenback
US Dollar: Gradual depreciation path versus Euro – BNP Paribas
Just like last week, investors were slightly alarmed by the latest pick up in tensions in the Middle East, causing oil prices.
Euro: Range-bound risks with upside caps against US Dollar – Rabobank
Looking at the 4-hour chart, the pair climbed above the 38.2% Fib retracement level of the downward move from the 1.1787 swing high to the 1.1576 low. However, the bears seem to be active near the key hurdle at 1.1675.
EUR/USD is attempting to recover after defending a critical support zone at the monthly lows, with price now approaching the initial resistance. The rebound has improved near-term momentum and eased immediate downside pressure, but the broader outlook remains sensitive to how the pair reacts at this barrier.
Euro rises as US-Iran deal hopes sink US Dollar and Oil
EUR/USD ended Friday at 1.1640 following significant volatility during the previous session. Pressure on the US dollar emerged after reports suggested that the US and Iran had reached preliminary agreements aimed at resolving the conflict.
Markets have spent the past 24 hours receiving what should have been overwhelmingly Dollar-negative news. Negotiators from Washington and Tehran reportedly finalized a draft framework that would extend the current ceasefire, reopen the Strait of Hormuz, lift restrictions on Iranian oil exports, and reduce one of the largest geopolitical risks hanging over global markets.