Traders await Fed minutes for rate clues as EUR gains slightly amid USD volatility and rising Middle East tensions.
EUR/USD traded around 1.1410 in Asian hours, recovering minor losses as the USD weakened slightly. Market focus remains on today’s Federal Reserve meeting minutes, the first under Chair Kevin Warsh, for signals on US interest rate trajectories.
The pair had dipped in prior sessions but stabilized as geopolitical risks, including US airstrikes on Iran and Tehran’s threats to block the Strait of Hormuz, fueled safe-haven demand. ECB officials warned that Middle East conflicts could sustain core inflation, boosting rate hike expectations.
USD volatility persists as traders balance Fed policy cues against escalating regional tensions and energy supply risks.