The euro faced downward pressure on Monday as escalating geopolitical tensions in Ukraine and the Middle East prompted investors to seek safer assets. This increased demand for the U.S. dollar, weighing on the euro.

Heightened tensions surrounding the conflict in Ukraine and ongoing instability in the Middle East have created an environment of uncertainty, leading investors to reduce their exposure to riskier assets like the euro.

Furthermore, concerns about the strength of the Eurozone’s economic recovery also contributed to the euro’s weakness. Recent economic data has painted a mixed picture, raising doubts about the region’s growth prospects.

Analysts suggest that the euro’s performance will continue to be influenced by geopolitical developments and economic data releases in the coming weeks.