Geopolitical tensions in the Middle East drive risk aversion, supporting the USD and capping EUR gains at 1.1600.
EUR/USD traded steady around 1.1600 in Asian hours Wednesday after modest losses the prior day. The pair showed limited movement despite escalating geopolitical risks as former President Trump threatened to resume strikes on Iran, fueling risk aversion and supporting the USD.
The currency pair had previously weakened amid broader USD strength, with investors monitoring Middle East developments. Comparable periods of heightened tensions have historically bolstered the greenback as a safe-haven asset, pressuring EUR/USD.
No immediate market reaction was reported, though further USD gains could push the pair lower if tensions persist.