Forex
Home›Forex›Major Pairs›EUR/USD slips toward 1.1575 on US-Iran war worries
EUR/USD slips toward 1.1575 on US-Iran war worries
EUR/USD is trading around 1.1575 after snapping a three-day win streak, with traders citing risks around the Strait of Hormuz and shifting expectations for a September Fed rate hike.
The euro edged lower against the US dollar, with EUR/USD losing traction around 1.1575 in early European trade and ending a three-day winning run, FXStreet reported. The move reflects market caution tied to US-Iran war worries, including concerns related to the Strait of Hormuz.
FXStreet noted that UKMTO said it received a report of an incident in the waterway, after a vessel was allegedly struck by an unknown projectile during an outbound transit. The outlet also pointed to comments from the US president that he is not interested in renewing an expiring Iran agreement, alongside Iran’s stance that a deal has been elusive and that US pressure must change.
Tensions in the Middle East can strengthen safe-haven demand for the dollar, creating a headwind for EUR/USD, while softer US economic data has also weighed on expectations for Fed tightening. FXStreet cited retail sales falling in July for the first time in nine months and said CME FedWatch shows 35% odds of a September rate hike, down from 47% a month earlier.
FXStreet added that EUR/USD remains supported by technical levels, including a position above the 100-day simple moving average and the daily opening pivot near 1.1573, as well as an RSI(14) reading around 62 indicating firm but not extreme upside momentum. Strategists at Scotiabank were also cited for noting euro support from economic resilience and narrowing yield spreads versus the US, despite energy and drought headwinds.
Latest closeEUR/USD 1.157 ▲0.4%