• EUR/USD holds gains despite increasing risk aversion sentiment on Monday.
• Israeli intelligence expects Iran to launch an attack within the next few days.
• Fed Governor Bowman suggests that the central bank may not be prepared to cut rates in September.

EUR/USD halts its four-day losing streak, trading around 1.0920 during the Asian session on Monday. Traders await the preliminary Gross Domestic Product (GDP) data for the Eurozone's second quarter, which is set to be released on Wednesday. The risk-sensitive Euro might encounter difficulties due to heightened geopolitical tensions in the Middle East. On Sunday, Defense Minister Yoav Gallant informed US Defense Secretary Lloyd Austin that Iran's military movements suggest preparations for a major strike on Israel. This potential action is reportedly in retaliation for the assassination of Hamas leader Ismail Haniyeh in Tehran in late July, according to Axios writer Barak Ravid. On the USD front, investors will likely focus on US producer inflation data set to be released on Tuesday and consumer inflation figures on Wednesday. Traders are looking for confirmation that price growth remains stable.