EUR/USD dips under 1.1500 after Iran cautions about possible US ground offensives
EUR/USD Continues Downward Trend Amid Geopolitical Tensions
The EUR/USD currency pair has declined for a fifth consecutive session on Monday, slipping by 0.15% to hover around 1.1490 in early Asian trading hours. This ongoing weakness is fueled by heightened risk aversion in the markets, following stern remarks from Iran’s Brigadier General Ebrahim Zolfaqari on state television, who warned that US ground forces would become “easy prey for the sharks of the Persian Gulf.”
Currently, S&P 500 futures are down 0.5%, reflecting investors’ cautious stance toward riskier assets. At the same time, the US Dollar Index (DXY), which measures the dollar against a basket of six major currencies, has edged up by 0.15% to approximately 100.35.
Last Thursday, the Wall Street Journal reported that the US Pentagon intends to deploy an additional 10,000 troops to Iran, despite President Donald Trump’s statements about ongoing negotiations with Tehran.
On the economic calendar, market participants are awaiting the release of Germany’s preliminary Harmonized Index of Consumer Prices (HICP) for March, scheduled for 12:00 GMT. This inflation data is expected to be closely monitored, as it could shape expectations for the European Central Bank’s (ECB) future monetary policy. The figures will be particularly significant for Eurozone interest rate forecasts, especially in light of rising energy costs stemming from ongoing Middle East tensions.
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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