Geopolitical uncertainty in the Strait of Hormuz drives safe-haven demand for USD, pressuring the Euro ahead of key US jobs data.
The EUR/USD pair fell to 1.1530 in Asian trading on Wednesday, weighed down by escalating Middle East tensions. Iran’s rejection of US claims over the Strait of Hormuz has fueled risk aversion, bolstering the US Dollar’s appeal as a safe haven.
US JOLTS job openings for June came in at 7.359 million, below the 7.537 million recorded in May and under the 7.4 million consensus. Traders are now focused on Friday’s US nonfarm payrolls report, which could influence Federal Reserve rate expectations.
A weaker-than-expected jobs print may undermine the USD, offering temporary relief to the EUR/USD pair. However, persistent geopolitical risks continue to cap gains for risk-sensitive currencies.