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Euro slips as US Dollar firms amid US Iran strikes
EUR/USD traded around 1.1405, near one week lows, as the US Dollar Index extended gains for a fourth straight day and energy disruption concerns lifted oil prices.
The euro eased on Tuesday as the US Dollar strengthened amid continued US Iran strikes, with EUR/USD hovering around 1.1405 and near one week lows, according to FXStreet.
The outlet also pointed to stronger than expected ZEW economic sentiment for the eurozone, which rose to 23.4 in July from 9.5 in June, alongside an increase in Germany’s Economic Sentiment Index to 26.3 from 10.5, both beating forecasts.
FXStreet said the US carried out a tenth consecutive night of strikes, while Tehran targeted US military assets across the region, and that a proposed 10 day ceasefire could offer some hope but fighting has continued to affect energy shipments through the Strait of Hormuz.
With oil prices rebounding and inflation concerns reigniting, traders expect both the ECB and the Federal Reserve to keep monetary policy tighter for longer, and note that while rates are expected to be left unchanged at upcoming meetings, further rate hikes remain possible if inflation pressures intensify.
Latest closeEUR/USD 1.145 ▼0.2%