EUR/USD stays under pressure beneath 1.1450 amid ongoing Middle East tensions
EUR/USD Holds Steady Amid Heightened Middle East Tensions
EUR/USD is trading defensively near 1.1430 in the early hours of Monday’s Asian session. The pair’s upward momentum appears restricted as ongoing unrest in the Middle East fuels demand for safe-haven assets.
According to The Guardian, US Energy Secretary Chris Wright anticipates that the conflict between the US, Israel, and Iran could conclude within several weeks, which may lead to a recovery in oil supplies and a drop in energy prices. However, Israel’s military has indicated that its operations could persist for at least another three weeks.
Over the weekend, US forces struck all military installations on Kharg Island, a vital hub for Iranian oil exports. Although President Donald Trump assured that oil infrastructure was spared, Iran has warned of possible retaliation against any regional oil facilities linked to the US.
French President Emmanuel Macron emphasized on Sunday the urgent need to restore freedom of navigation through the Strait of Hormuz. He also urged Iran’s president to immediately halt attacks on neighboring countries, including Lebanon and Iraq, deeming them unacceptable.
Rising geopolitical uncertainty in the Middle East could strengthen safe-haven currencies like the US Dollar (USD), potentially weighing on EUR/USD in the short term.
Key Central Bank Decisions Ahead
This week, attention will turn to upcoming interest rate announcements from the Federal Reserve and the European Central Bank (ECB). The Fed is widely expected to keep rates unchanged at 3.5%–3.75% during Wednesday’s policy meeting, while the ECB is also anticipated to maintain its current rates on Thursday.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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