EUR/USD moves up slightly to around 1.1535 during the early Asian session on Monday. Trump indicated that he will advise Netanyahu against retaliating against Iran. The ECB is anticipated to increase interest rates in light of the effects stemming from the Iran war. The EUR/USD pair is experiencing an upward trend, reaching approximately 1.1535 in the early hours of trading on Monday in the Asian market. Nonetheless, persistent geopolitical tension may limit the potential appreciation of the Euro against the US dollar. Germany is set to release its Factory Orders report, along with the Eurozone’s Sentix Investor Confidence figures, later on Monday.
US President Donald Trump stated on Sunday that Israel ought to refrain from retaliating against Iran in light of its missile barrage, contending that any further action would jeopardise a deal involving the three parties. “We don’t need another one,” Trump stated following the Iranian attack, before indicating his intention to reach out to Israeli Prime Minister Benjamin Netanyahu. Iranian officials indicated that additional attacks would be forthcoming if Israel persists in its offensive in Lebanon, following a lethal Israeli strike that impacted Beirut on Sunday amidst ongoing clashes with Iran-backed Hezbollah.
Any indications of rising tensions in the Middle East may strengthen the Greenback as a safe-haven currency, potentially creating challenges for the major pair. Across the pond, the assertive position of the European Central Bank may offer some backing to the shared currency. The European Central Bank is expected to increase its deposit rate to 2.25% during the forthcoming June policy meeting, with an additional hike anticipated in September, according to a Reuters survey of economists.