EUR/USD achieves some gains after knocking back on risk aversion

The EUR/USD pair began Monday with a dip to 1.0519 before easing back. The Euro remains down against the US Dollar for Monday, but losses are paring back. Market sentiment is rebalancing after geopolitical escalations in the Gaza Strip.

The Euro is testing upwards into 1.0570 after slipping down into 1.0520. Markets went risk-off in early Monday trading due to concerns about Iran and Saudi Arabia getting pulled into the escalating Gaza conflict.

However, investor sentiment appears to have recovered, and the Euro is easing back towards the day’s opening bids. Euro investors are looking ahead to an upcoming speech from European Central Bank President Christine Lagarde during the International Monetary Fund’s annual meeting in Morocco.

The US Producer Price Index (PPI) figures are expected to increase from 2.2% to 2.%, and the Federal Reserve’s meeting minutes will be published.

Speeches from ECB officials, the ECB’s meeting minutes are awaited by investors and traders, and the US Consumer Price Index (CPI) printing is expected to decline slightly. The Michigan Consumer Sentiment Index for October is also expected to decline slightly.