Geopolitical tensions in the Middle East lift the US Dollar, pushing EUR/USD to 1.1405 despite positive German ZEW data.
The Euro declined against the US Dollar on Tuesday, with EUR/USD trading near 1.1405 as safe-haven demand bolstered the greenback amid escalating Middle East tensions. The pair remains close to one-week lows despite stronger-than-expected German ZEW economic sentiment surveys.
Earlier data showed German investor confidence improving, but the impact was overshadowed by broader risk aversion. The US Dollar index held firm as traders sought safety, reflecting concerns over potential disruptions to global supply chains and energy markets.
Market reaction was muted beyond the initial move, with traders awaiting further developments in the geopolitical landscape and upcoming US economic releases.