Euro weakens against US Dollar amid Middle East tensions
EUR/USD extends its losses for the second consecutive day, trading around 1.1520 during the Asian hours on Friday. The currency pair faces downward pressure as the US Dollar (USD) gains strength, propelled by renewed safe-haven demand among global investors.
The Euro (EUR) has weakened against the US Dollar (USD) amid growing Middle East tensions, particularly around the Strait of Hormuz. This currency pair has seen losses for two consecutive days, trading around 1.1520 during Asian hours on Friday. The downward pressure on EUR/USD is attributed to the US Dollar's strength, driven by safe-haven demand from global investors as market stability is shaken by the escalating tensions.
Additionally, concerns over Iran's potential restrictions on the Strait of Hormuz, coupled with rising US Treasury yields and crude oil prices, have added to market volatility and heightened expectations of a possible interest rate hike from the Federal Reserve. Meanwhile, Eurozone economic indicators, including a contraction in retail sales, present a challenging backdrop for the EUR, which is the second most heavily traded currency globally.
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