Geopolitical escalation in the Middle East drives safe-haven flows into USD, pressuring EUR/USD toward 1.1300.
EUR/USD dropped as fresh US-Iran clashes and Iran’s threat to close the Strait of Hormuz strengthened the Dollar. Analysts see the pair testing 1.1350-1.1300 if support breaks lower.
The Dollar Index is expected to trade between 100.40 and 102 in upcoming sessions, reflecting heightened risk aversion. Prior sessions saw EUR/USD stabilize near 1.1400 before the latest geopolitical flare-up.
No immediate market reaction data was provided, but safe-haven assets typically gain during such tensions.