The Euro (EUR) maintains its positive tone against the US Dollar (USD) on Monday, with the EUR/USD pair trading near 10-day highs above 1.1600.
The positive market sentiment amid the US-Iran peace deal and the lower Oil prices has offset the weak Eurozone Industrial Production and Trade Balance data seen earlier on the day
Factory output grew at a mere 0.1% pace in the Eurozone in April, according to data by Eurostat, down from an upwardly revised 0.4% reading in March and below the 0.3% growth expected by the markets. Beyond that, the Trade Balance shifted to a EUR 1 billion deficit, from a nearly EUR 5 billion surplus in March, also against the market consensus of a EUR 7.8 billion positive balance. Iran peace hopes boost risk appetite The impact of these figures on the Euro, however, has been limited.
Investors’ appetite for risk remains strong amid reports that Washington and Tehran reached a memorandum of understanding that will end a three-month war and allow for the reopening of the key Strait of Hormuz. Brent Oil prices have dropped by nearly $4 from last week’s closing levels, hitting fresh three-month lows right above $82.00 and easing some pressure on the Crude-importing Eurozone economies. Also on Monday, European Central Bank (ECB) policymakers Martins Kazaks and Joachim Nagel have shown their concerns about the ongoing inflationary pressures, feeding hopes of further monetary tightening.