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Forex - EUR/USD slips as dollars firms on waning geopolitical tensions

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Investing.com -

Investing.com - The dollar strengthened against the euro on Monday on market sentiments that the military conflicts in Ukraine and Iraq that have eroded the U.S. currency in recent sessions are subsiding.

In U.S. trading, EUR/USD was down 0.20% at 1.3383, up from a session low of 1.3382 and off a high of 1.3412.

The pair was likely to find support at 1.3333, last Wednesday's low, and resistance at 1.3433, Friday's high.

Reports that Russia has ended the military exercises it was conducting near the Ukraine border gave the dollar room to rise on Monday in a session void of major market-moving indicators.

Russian President Vladimir Putin said Moscow is working with the International Red Cross to send humanitarian aid to Ukraine, which also gave the greenback support.

Meanwhile in the Middle East, a 72-hour ceasefire between Israel and Hamas in Gaza took effect on Sunday, which gave the dollar further room to rise by allaying concerns that geopolitical tensions will dampen global growth and possibly prompt the Federal Reserve to take more time analyzing the economy before raising interest rates.

A U.S. decision to launch airstrikes in Iraq to halt a Sunni insurgency gave the greenback support as well, as fears that the country was on the edge of chaos ebbed on Monday as well.

Separately, the euro came under pressure due to ongoing expectations that monetary policy will tighten in the U.S., U.K. at a time while the European Central Bank may decide to loosen policy further to steer the euro area away from deflationary decline.

Elsewhere, the euro was down against the pound, with EUR/GBP down 0.28% at 0.7974, and down against the yen, with EUR/JPY down 0.12% at 136.69.

On Tuesday, the ZEW Institute is to release its closely watched report on German economic sentiment, a leading indicator of economic health.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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