The EUR/USD pair fell below the $1.15 mark on Monday as the U.S. dollar gained traction as a safe-haven asset. The move follows U.S. airstrikes on three Iranian nuclear facilities over the weekend, signaling America’s direct involvement in the escalating Israel-Iran conflict. Market participants are closely monitoring Tehran’s potential response.
The dollar’s strength was further bolstered by the Federal Reserve’s decision to keep interest rates unchanged last week. As a result, the U.S. dollar index rose 0.30% to 98.57, reflecting broad-based greenback gains. Growing geopolitical uncertainty is fueling dollar demand while putting pressure on the EUR/USD pair.
Eurozone economic data was mixed: the manufacturing PMI held steady at 49.4 in June, below the consensus estimate of 49.8. However, the services PMI rose to 50.0 from 49.7 in May. In Germany, the HCOB manufacturing PMI rose to 49.0 from 48.3 in May—matching forecasts and a 34-month high. The German services PMI also improved, rising to 49.4 from 47.1.
Eurozone economic data was mixed: the manufacturing PMI held steady at 49.4 in June, falling short of the 49.8 consensus estimate. However, the services PMI edged up to 50.0 from 49.7 in May. In Germany, HCOB manufacturing PMI rose to 49.0 from May’s 48.3—matching forecasts and marking a 34-month high. The German services PMI also improved, climbing to 49.4 from 47.1.
Meanwhile, EURINR futures on the NSE were trading marginally lower at 99.81.
