The Euro (EUR) is trading moderately higher against the Dollar (USD), yet moving within previous ranges on Monday.
The pair has returned to the upper side of the 1.1700s range, and is trading at 1.1775 at the time of writing after a negative opening, following US President Donald Trump’s rejection of Iran’s peace plan
Trump posted on social media that Tehran’s latest peace proposal was “totally unacceptable”, crushing market hopes of a swift end to the war in the Middle East and the reopening of the Strait of Hormuz. Oil prices jumped after the news, with the barrel of Brent returning above $100, which puts the Eurozone’s Crude-importing economies under pressure and undermines the Euro’s upside attempts. On the macroeconomic front, US Nonfarm Payrolls beat expectations on Friday, showing a 115K increase, almost twice the 62K expected.
These figures strengthen the case for Federal Reserve (Fed) hawks and ease pressure on the bank to cut interest rates, which provides support to the Greenback. The economic calendar is thin in the US and Europe on Monday. Later this week, US Consumer Prices Index (CPI) data, due on Tuesday, and US Retail Sales on Thursday, together with Fed speakers throughout the week, will provide the fundamental guidance for the USD.