The EURUSD exchange rate will await the market’s reaction to the United States joining the attacks on Iran.
The price of the EURUSD has found resistance at the 1.1580 level and that will be key for the path ahead. Lower support comes in at the high of 2023 and 2024.
A decision to attack Iran by US President Donald Trump has led to retaliation against Israeli targets. It was a bold move by Trump to launch an attack without the approval of congress, which targeted three Iranian nuclear facilities on Sunday.
In a move to calm the reaction, the Trump administration has reportedly contacted Iran to reassure them that the American strikes were a “one-off attack” rather than the commencement of an all-out regime-change war, according to the Wall Street Journal.
Trump will now face tensions at home after domestic Senators called for a vote on the War Powers Act, saying, “No president should be allowed to unilaterally march this nation into something as consequential as war with erratic threats and no strategy”.
Data ahead for the pair on Monday will be the release of HCOB PMI data for the German and Eurozone economies. Manufacturing in Germany is expected to tick higher to 48.8, versus 48.3 last month. Services PMI for the eurozone is expected to touch 50, which is the marker for expansion in the sector.
Currency markets could have extra volume this week as traders manage their exposure to the latest Middle East developments. There is also further opportunity for moves in the week, driven by further conflict between Israel and Iran.
