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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The US dollar regained some strength recently after both President Trump and Iran rejected proposals aimed at ending the war, leaving both sides diplomatically distant. Meanwhile, Israeli PM Netanyahu confirmed that the removal of Iranian nuclear material remains an active priority in the ongoing conflict. According to reports, markets are currently pricing in an 84% chance of an ECB rate hike in June, with 68 basis points of total tightening expected by year-end.
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Sign InThis geopolitical stalemate occurs as Eurozone economic data shows significant divergence; French industrial production grew by 1% in March, beating the 0.5% forecast per market data. Conversely, Spain's Services PMI showed a contraction at 47.9 points, missing the 52-point expectation. These conflicting pressures, combined with high energy prices, are reinforcing investor caution regarding the single currency.
Traders are currently monitoring the EUR/USD pair as it moves within a tight range, awaiting upcoming inflation data and central bank speeches. Looking at the economic calendar, the interest rate decision in Mexico and key remarks from Fed officials Hammack and Goolsbee are scheduled for later today (May 13, 2026). These events will be critical in determining whether the pair can break current support levels or continue its sideways trajectory.