The euro has fallen below 1.1650 against the US dollar, trading around 1.1620 in early Asian hours Thursday as geopolitical tensions intensify. Fresh US military strikes in Iran are driving investors away from risk-sensitive currencies toward safe-haven assets, with the greenback benefiting from the flight to safety.
The EUR/USD pair is under sustained pressure as escalating US-Iran conflict prompts traders to reassess risk exposure across currency markets. The euro, typically vulnerable during periods of geopolitical uncertainty, is weakening as the dollar captures defensive flows amid mounting Middle East tensions.
Currency traders, particularly those holding long euro positions, face immediate headwinds as the security situation deteriorates. The move reflects broader risk-off sentiment spreading across Asian markets, with forex pairs showing clear safe-haven preferences favoring the dollar over European and emerging market currencies.
FXnCO Insight
Traders should prepare for extended euro weakness and elevated volatility in EUR/USD as geopolitical risk premiums rise, with tactical short positions potentially benefiting from continued safe-haven dollar demand.
Source: FXStreet