• EUR/USD edged back into the low end on Monday as the US Dollar bounces.
• A strong Greenback bid is bolstering the USD across the board.
• Easing equity prices and a simmering Middle East are boosting safe haven bids.

EUR/USD pivoted into early losses to kick off the new trading week, cutting a near-term recovery rally short and sending intraday bids tumbling back toward 1.0800. The US market session sees stock investors taking a breather from setting record highs multiple days in a row, and the downside push in equities is helping to send the US Dollar higher.

Middle East geopolitical tensions continue to simmer away in the background, giving the safe haven Greenback a boost and lending a leg higher to both Gold and Crude Oil prices. Market participants continue to wait and see if the US will successfully negotiate Israel into a ceasefire as the small country continues to wage war against Hezbollah and Hamas, showing a willingness to cross into other countries’ borders to do it.

Federal Reserve (Fed) Bank of Dallas President Lorie Logan hit most of the common narrative elements markets have received from Fed policy planners in recent weeks, however the Dallas Fed President made a point of noting that money markets are “cose to or just above interest on reserve rates”. Dallas Fed President Logan then proceeded to highlight the risks to the US labor market and the Fed’s dedication to maintaining a healthy employment rate, underlining the fact that the Fed will need not just a decline in inflation, but a significant uptick in the unemployment rate before markets would see accelerated rate cuts.