The Euro (EUR) advances against the US Dollar (USD) on Monday, despite the market mood remaining downbeat amid the Middle East crisis. Worse than expected HCOB Flash PMIs in the Eurozone barely weighed in the shared currency, while German PMIs showed a slight improvement, though they remained in contractionary territory. At the time of writing, EUR/USD trades at 1.1567, up 0.40%.

Geopolitics are the primary driver on Monday, as we head into the latest trading week in June. Last Saturday, the US delivered an attack on the three most critical nuclear facilities in Iran, following failed efforts by the White House to reach a deal with Tehran.

Consequently, Iran delivered strikes on a US base in Qatar. Regarding the Ain al-Assad base in Iraq, sirens were activated, as preparation for an expected attack, but there were no missiles launched. Alongside military action, Iran's parliament decided to suspend cooperation with the International Atomic Energy Agency (IAEA).

Data-wise, S&P Global revealed that business activity in the US expanded in the manufacturing sector. Regarding services, companies reported that they're growing at a healthy pace, despite June numbers dipping compared to the previous month's print.

Across the pond, Eurozone HCOB Flash PMIs deteriorated further, missing estimates. In Germany, Flash PMIs improved, providing some relief on the shared currency, even though the European Central Bank (ECB) President Christine Lagarde mentioned that "survey data point overall to some weaker prospects for economic activity in the near-term."

Now, EUR/USD traders' attention shifts to Federal Reserve (Fed) Chair Jerome Powell's testimony before the US Congress and Fed speakers. In the Eurozone, the docket will feature the release of Germany's IFO Business Climate for June, and speeches by ECB De Guindos and ECB Chief Economist Philip Lane.

Source: Fxstreet