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EUR/USD slips near 1.1400 as Iran tensions drive risk-off

The euro is easing after the Strait of Hormuz was closed, with oil prices jumping more than 4% and adding pressure on oil-importing Eurozone economies.

Reported · Written up by our desk · Major Pairs

FXStreet reports the euro is depreciating moderately against the US dollar on Monday, with EUR/USD trading around the 1.1400 area after previously rejecting near 1.1460 on Friday.

The move comes as escalating US and Iran tensions have shifted markets into a risk-off tone, including the closure of the Strait of Hormuz and reports of attacks over the weekend, with the Iranian Islamic Revolutionary Guard Corps saying the waterway is shut.

FXStreet adds that even with the US CENTCOM saying some ships were escorted through the Strait of Hormuz, oil prices rose more than 4% from the previous week, raising inflationary pressures and weighing on the euro given Europe’s oil import exposure.

Looking ahead, the outlet says Monday’s market focus includes speeches by European Central Bank and Federal Reserve officials, while later this week the US Consumer Price Index for June and Fed Chair Warsh’s testimony are expected to shape the dollar’s direction.

Latest closeEUR/USD 1.142 ▼0.0%

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