Euro at Over Two-Week High as Middle East Talks Loom

2026-06-01 07:29 By Joana Ferreira 1 min. read

The euro began June at $1.166, its highest level since May 14, though it remained largely unchanged from the previous session.

Investors are closely monitoring developments in the Middle East conflict while processing a range of economic data from Europe.

US and Iran are negotiating a ceasefire extension and Strait of Hormuz reopening, though progress is unclear, and Israel’s expanded ground assault in Lebanon has broken a truce.

On the economic front, German retail sales declined in April for the fourth consecutive month, but slightly less than expected.

Investors are also awaiting the Eurozone inflation report due this week, following last week’s data showing that EU-harmonized rates accelerated in May across France, Italy, and Spain, while Germany experienced a slowdown.

Additionally, ECB minutes indicated that some policymakers would have supported an April rate hike if proposed, reinforcing expectations of a 25-basis-point increase at the June 11 meeting.



News Stream
Euro at Over Two-Week High as Middle East Talks Loom
The euro began June at $1.166, its highest level since May 14, though it remained largely unchanged from the previous session. Investors are closely monitoring developments in the Middle East conflict while processing a range of economic data from Europe. US and Iran are negotiating a ceasefire extension and Strait of Hormuz reopening, though progress is unclear, and Israel’s expanded ground assault in Lebanon has broken a truce. On the economic front, German retail sales declined in April for the fourth consecutive month, but slightly less than expected. Investors are also awaiting the Eurozone inflation report due this week, following last week’s data showing that EU-harmonized rates accelerated in May across France, Italy, and Spain, while Germany experienced a slowdown. Additionally, ECB minutes indicated that some policymakers would have supported an April rate hike if proposed, reinforcing expectations of a 25-basis-point increase at the June 11 meeting.
2026-06-01
Euro Steady Amid Fresh Inflation Data
The euro held steady at $1.165 on the last trading session of May, on track for a 0.8% monthly loss against the USD. Investors analyzed fresh inflation data from Europe’s largest economies for clues on the ECB’s policy direction, while monitoring developments in US-Iran peace talks. Flash data revealed EU-harmonized inflation accelerated in May across France, Italy, and Spain, while Germany saw a slowdown, yet all remained well above the ECB’s 2% target. ECB minutes suggested some policymakers would have backed an April rate hike if proposed, reinforcing expectations of a 25-basis-point increase at the June 11 meeting. Meanwhile, White House sources said the US and Iran agreed on a 60-day ceasefire extension MoU to allow formal talks, though President Trump has not yet approved it. Elsewhere, geopolitical tensions rose after a Russian drone struck a building in Romania’s Galati overnight, during broader attacks on Ukrainian infrastructure near the border.
2026-05-29
Euro Bounces Off Six-Week Low
The euro edged higher to $1.164, attempting to recover from a six-week low as markets assessed both Middle East developments and shifting expectations for European monetary policy. According to Axios, US and Iranian negotiators have reportedly agreed on a 60-day memorandum of understanding to extend a ceasefire and open talks on Iran’s nuclear program, though final approval from President Trump is still pending. While the diplomatic outlook offered some support for risk sentiment, geopolitical tensions remain elevated. At the same time, investors parsed the latest European Central Bank meeting minutes, which showed several policymakers viewed the April decision to hold rates as a close call, with some indicating they would have supported a hike had it been proposed. Money markets are now pricing in an almost fully expected 25-basis-point rate hike on June 11, with at least one additional increase anticipated by year-end.
2026-05-28