Euro Rises Amid Risk Appetite

The euro strengthened against other major currencies in the European session on Monday amid increased risk-on mood by the investors, as world leaders gathered in Canada for the G7 summit, which will address global security, economic resilience, and tech cooperation. Discussions to resolve the Middle East crisis will also be a top priority.

The Israel-Iran conflict entered its fourth day, with fresh missile exchanges.

Iranian strikes on Tel Aviv, Haifa, and Petah Tikva killed at least five, injured dozens, and damaged key infrastructure, including a power plant.

Markets also looked ahead to monetary policy decisions from the Federal Reserve, the Bank of Japan and the Bank of England due later in the week.

In the European trading today, the euro rose to nearly a 1-year high of 167.22 against the yen and a 4-day high of 0.9420 against the Swiss franc, from early lows of 166.35 and 0.9385, respectively. If the euro extends its uptrend, it is likely to find resistance around 165.00 against the yen and 0.95 against the franc.

Against the pound and the U.S. dollar, the euro edged up to 0.8530 and 1.1587 from early lows of 0.8511 and 1.1524, respectively. The euro may test resistance around 0.86 against the pound and 1.16 against the greenback.

Looking ahead, Canada housing starts for May, U.S. New York Empire State manufacturing index for June and U.S. NOPA crush report are slated for release in the New York session.