SAR/USD Exchange rate

EUR/USD stays under bearish pressure and falls toward 1.1450 on Monday. The renewed US Dollar buying, amid the deepening crisis in the Middle East, and mixed PMI data releases from Germany and the Eurozone weigh on the pair as focus shifts to US data and central bank talks.

As the Israel-Iran conflict reaches new heights, an old threat is coming back to haunt the markets: that of the closure of the Strait of Hormuz. This narrow arm of the sea in the Persian Gulf, wedged between Iran to the north and the United Arab Emirates and Oman to the south, is much more than a simple sea passage.

Gold stays on the back foot to start the week and trades below $3,400. Although XAU/USD's manages to limit its losses, the US Dollar (USD) also benefits from escalating geopolitical tensions in the Middle East, making it difficult for the pair to gather recovery momentum.

The Middle East remains in the spotlight after a turbulent weekend. Fed Chair Jerome Powell faces lawmakers and may shed more light on the central bank's thinking, and a key inflation figure is expected later to promise a strong end to the week.

GBP/USD is holding its rebound above 1.3400 in the European session on Monday. The fears that Iran would retaliate against US attacks on its nuclear sites continue to support the safe-haven US Dollar. Investors await the June preliminary PMI readings from the UK and the US for fresh trading directives.