EUR/USD gives away previous gains on risk-aversion mixed Eurozone data
The EUR/USD has failed to return above the 1.1500 level on Monday and has turned lower, to reach levels right above the last two weeks' lows, at 1.1450. From a wider perspective, the pair remains within a descending channel from mid-June highs, with investors wary of risk and awaiting Iran's retaliation to the US attack.
The United States launched massive strikes on three key nuclear sites in Iran, including the underground facility of Fordow, which, according to US President Donald Trump, has devastated Iran's nuclear program. Further comments from Trump suggest that this has been a one-off action and that a wider escalation can be avoided if Tehran refrains from retaliation. The market reaction, so far, has been limited.
Iran's authorities have launched missiles at Israel, and its parliament approved the closure of the Strait of Hormuz, a key gateway to Oil transport, which might bring Crude prices to levels well beyond 100 per barrel. Iran has not attacked US interests in the region so far, but if this happens, it would be the trigger for a wider regional war.
Source: Fxstreet
