EUR/USD recovers some early losses driven by rising energy prices amid US-Iran war
- EUR/USD bounces back after sliding to near 1.1755, remains broadly weak amid Middle East tensions.
- Oil price rises after reported attacks on tankers near the Strait of Hormuz.
- Investors await the US ISM Manufacturing PMI and the flash Eurozone HICP data for February.
The EUR/USD pair claws back some of its early losses during the late Asian trading session on Monday, but is still 0.25% down to near 1.1780.
Earlier in the day, the Euro (EUR) declined sharply against the US Dollar (USD) as investors shifted to the safe-haven fleet amid the brutal war between Iran, Israel, and the United States (US), which broke out over the weekend.
Euro Price Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the weakest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.31% | 0.35% | 0.30% | 0.10% | 0.43% | 0.51% | -0.00% | |
| EUR | -0.31% | 0.04% | -0.02% | -0.21% | 0.12% | 0.20% | -0.31% | |
| GBP | -0.35% | -0.04% | -0.04% | -0.25% | 0.08% | 0.16% | -0.35% | |
| JPY | -0.30% | 0.02% | 0.04% | -0.19% | 0.14% | 0.21% | -0.29% | |
| CAD | -0.10% | 0.21% | 0.25% | 0.19% | 0.33% | 0.40% | -0.10% | |
| AUD | -0.43% | -0.12% | -0.08% | -0.14% | -0.33% | 0.08% | -0.43% | |
| NZD | -0.51% | -0.20% | -0.16% | -0.21% | -0.40% | -0.08% | -0.50% | |
| CHF | 0.00% | 0.31% | 0.35% | 0.29% | 0.10% | 0.43% | 0.50% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
A series of airstrikes between nations and reported attacks on tankers in the Strait of Hormuz have boosted the oil price, which will result in higher energy expenditure going forward. The situation is unfavorable for the Euro (EUR), given that the Eurozone economy relies heavily on oil imports to meet its energy needs.
On the domestic front, investors await the preliminary Eurozone Harmonized Index of Consumer Prices (HICP) data for February, which will be released on Tuesday. The inflation data is expected to influence market expectations for the European Central Bank’s (ECB) monetary policy outlook. On Friday, the data showed that flash German HICP grew at a moderate pace of 2% Year-on-Year (YoY). slower than the estimates and the previous reading of 2.1%.
Meanwhile, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, has surrendered some of its early gains, but is still trading 0.23% higher to near 97.85 amid a risk-off mood.
This week, investors will focus on a slew of US employment-related data, notably the Nonfarm Payrolls (NFP) report for February. In Monday’s session, investors will focus on the US ISM Manufacturing PMI data for February, which will be published at 15:00 GMT.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
