FxAnalysis

The Euro has been very choppy during the month of February as traders are trying to figure out where the two central banks are heading at the moment.

For much of 2024 and into early 2025, Artificial Intelligence was framed as an equity market theme, something for Nasdaq bulls and venture capital decks. That is now changing fast.

The EUR/USD pair plunged towards 1.1700 on Monday, as risk aversion took over financial markets following weekend headlines. On Saturday, the United States (US) and Israel launched a massive attack on Iran, killing the  Islamic Supreme Leader Ayatollah Ali Khamenei.

Bitcoin has been extraordinarily negative during February, as traders cannot find a reason to push the market higher. In fact, narrative after narrative has been wiped out.

EUR/USD staged a rebound after opening with a bearish gap but turned south again, pressured by the risk-averse market atmosphere. The pair stays under pressure in the European session on Monday and trades slightly above 1.1700.

The USD/ZAR exchange rate rose on Monday morning as financial markets opened following the weekend developments in Iran and the Middle East in general. The pair was trading at 16.9, up from the year-to-date low of 15.6.