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Euro consolidates above 1.1350, vulnerable near late July lows

FXStreet notes traders are largely waiting on developments tied to the Middle East crisis before making new bets on EUR/USD.

Reported · Written up by our desk · Major Pairs

FXStreet said EUR/USD was consolidating around 1.1365 to 1.1370 during the Asian session, after trading near its lowest level since July 28.

The outlet attributed a cautious tone among traders to a wait for further developments around the Middle East crisis, including discussion of efforts related to reopening the Strait of Hormuz and potential easing of sanctions tied to Iran's nuclear program.

FXStreet also pointed to a backdrop favoring USD strength, citing the Federal Reserve projecting another rate increase by the end of the year after a 25 basis point hike earlier in the month and energy-driven inflation concerns that have pushed US bond yields to multi-year highs.

In that view, FXStreet said the path of least resistance for EUR/USD appeared to be to the downside, leaving the pair vulnerable near the late-July lows.

Latest closeEUR/USD 1.137 ▼0.1%

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