Currency pair stability hinges on upcoming US inflation figures amid Middle East tensions and oil price volatility.
EUR/USD opened the week at 1.1433, reflecting cautious trading ahead of key US inflation data. The report is expected to drive near-term direction for the currency pair, overshadowing other macroeconomic factors.
Investors remain focused on geopolitical risks, particularly in the Middle East, where uncertainty persists despite reports of US-Iran peace talks. Oil prices retreated after an initial surge, easing concerns over energy-driven inflation spikes.
Market sentiment remains data-dependent, with traders awaiting inflation metrics to gauge potential Federal Reserve policy shifts. The pair’s recent range-bound movement underscores the wait-and-see approach.