The euro against the US dollar drops quickly near 1.1550 as the situation in Iran keeps investors cautious and focused on safer assets.
The rising oil prices because of the war in the Middle East have had a big impact on the Euro.
Investors are waiting to see the US CPI data to get new information about what the Fed might do with interest rates.
The EUR/USD pair is still below 1.1540 from Asian trade losses as the European trading session starts on Monday. The main currency pair is facing strong downward pressure because the demand for riskier investments is not strong, mainly because of the ongoing war in the Middle East involving the US, Israel, and Iran.
S&P 500 futures have dropped almost 2% during European trading hours, showing that investors are not very willing to take on risks right now. The US Dollar Index (DXY), which shows how strong the US dollar is compared to six major currencies, has gone up by about 0.6% to nearly 99.50, as there is still strong demand for the dollar as a safe investment.
Meanwhile, rising oil prices because of the Iran conflict are also hurting the Euro (EUR). Global energy prices have gone up a lot as the US and Israel worked together to attack several Iranian oil storage sites over the weekend.
Rising gas prices around the world have caused worries about higher inflation in the Eurozone, which could reduce how much money families have to spend.
In February, inflation in the old continent started rising faster than expected. The initial figures showed the headline Harmonized Index of Consumer Prices (HICP) went up by 1.9% compared to the same time last year, and the core HICP rose by 2.4% YoY.
In the US, investors are paying close attention to the Consumer Price Index (CPI) numbers for February, which will come out on Wednesday. These inflation numbers are likely to shape expectations about what the Federal Reserve (Fed) might do with its interest rates and money policies.
The rising oil prices because of the war in the Middle East have had a big impact on the Euro.
Investors are waiting to see the US CPI data to get new information about what the Fed might do with interest rates.
The EUR/USD pair is still below 1.1540 from Asian trade losses as the European trading session starts on Monday. The main currency pair is facing strong downward pressure because the demand for riskier investments is not strong, mainly because of the ongoing war in the Middle East involving the US, Israel, and Iran.
S&P 500 futures have dropped almost 2% during European trading hours, showing that investors are not very willing to take on risks right now. The US Dollar Index (DXY), which shows how strong the US dollar is compared to six major currencies, has gone up by about 0.6% to nearly 99.50, as there is still strong demand for the dollar as a safe investment.
Meanwhile, rising oil prices because of the Iran conflict are also hurting the Euro (EUR). Global energy prices have gone up a lot as the US and Israel worked together to attack several Iranian oil storage sites over the weekend.
Rising gas prices around the world have caused worries about higher inflation in the Eurozone, which could reduce how much money families have to spend.
In February, inflation in the old continent started rising faster than expected. The initial figures showed the headline Harmonized Index of Consumer Prices (HICP) went up by 1.9% compared to the same time last year, and the core HICP rose by 2.4% YoY.
In the US, investors are paying close attention to the Consumer Price Index (CPI) numbers for February, which will come out on Wednesday. These inflation numbers are likely to shape expectations about what the Federal Reserve (Fed) might do with its interest rates and money policies.
