EUR/USD Tests Critical Resistance as Middle East Tensions Mount

The EUR/USD currency pair closed the week near 1.1560, its highest level in several weeks, as shifting Middle East news and US data influenced dollar sentiment.

The pair's value was impacted by the uncertain geopolitical situation in the region, which kept global markets on edge and limited risk-taking.

US economic indicators also played a role, with the July Manufacturing ISM showing 55.6 and Services PMI at 54.1, but labour statistics were less favourable: ADP reported only 44K new private jobs in July versus 70K expected.

The euro itself lacked domestic support due to weaker-than-expected German retail sales and Eurozone sales numbers, while inflation data suggested a slight easing of price pressures.