EUR/USD Steady Above 1.1700
The EUR/USD extended its gains for a second day on Monday (April 27th), remaining above 1.1700, despite weak German consumer sentiment data. The euro's movement is considered to be more influenced by changes in global risk perceptions than disappointing domestic data.
The latest German GfK survey showed consumer mood deteriorating to its weakest level in more than three years. The sentiment index fell to -33.3 from -28.1, weaker than the market forecast of -29.5, but the impact on the euro has so far been limited.
Investors' primary focus remains on Middle East dynamics. An Axios report, citing US officials and sources familiar with the negotiations, stated that Tehran had sent a new proposal to the US, fueling hopes that the escalation could ease. The proposal reportedly includes options for ending hostilities and reopening the Strait of Hormuz, with nuclear discussions postponed to a later stage.
Meanwhile, diplomacy remains stalled after the second round of talks scheduled for last weekend was canceled. This situation maintains pressure on the energy supply chain, with tankers still stuck in Hormuz and oil prices hovering near US$100 per barrel, raising concerns about the risk of a global economic slowdown.
The market is also awaiting this week's monetary policy agenda, with the Fed's decision on Wednesday and the ECB's on Thursday. Both are expected to hold interest rates, but expectations that the ECB could signal a tightening in the coming months, as inflation pressures ease, are supporting the euro amid geopolitical uncertainty. (asd)
Source: Newsmaker.id
