Mixed Eurozone PMIs and escalating Middle East tensions offset slight USD weakness ahead of key US jobs data.
The Euro trades marginally lower against the US Dollar, with EUR/USD hovering just below the 1.1660 mark, the top of its two-week range. Rising geopolitical risks in the Middle East and lackluster Eurozone data are capping gains for the common currency.
Eurozone manufacturing PMI was revised upward to 51.6 in May from an initial 51.4, but still fell short of April’s 52.2. Unemployment held steady at 6.3% in April, defying expectations of a drop to 6.2%. Meanwhile, US ISM PMI data and Friday’s Nonfarm Payrolls report will offer clues on Fed policy.
Geopolitical tensions escalated after US and Iran exchanged strikes, while Israel intensified operations in Lebanon. Markets await a potential 60-day ceasefire extension, though Iranian officials have threatened retaliation over perceived US violations.