EURUSD

Markets are starting the new week under the shadow of the geopolitical shock created by the airstrike the US conducted on Iran over the weekend. This development sharply reduced global risk appetite, triggering demand for "safe havens" in the markets. The threatening language used by President Trump in his speech on Sunday and the ongoing tensions are putting serious pressure on stock markets and risky assets, while pushing the Dollar Index and oil prices higher. Following this tense start, the direction of the markets will be determined by critical US data to be released this week and by the speeches of Fed Chairman Powell. In particular, the PMI data to be released today and the Core Personal Consumption Expenditures (PCE), which is the inflation indicator most closely monitored by the Fed and will be announced on Friday, will be the main focus of the markets.