EUR/USD Drops to Approximately 1.1480

The EUR/USD currency pair dips to around 1.1480 during the early hours of Monday’s Asian session. Following President Trump’s decision to engage in the ongoing conflict between Israel and Iran, anxieties persist as traders watch the developments in the Middle East closely.

This weekend, the U.S. participated in airstrikes against three Iranian sites, including key facilities at Fordow, Natanz, and Isfahan. Trump stated that significant nuclear enrichment capacities in Iran had been “completely wiped out.” He also warned of a potential “far bigger” military response if Iran does not consider peace. The increasing tensions could lead to a rise in demand for safe-haven assets like the U.S. dollar, which might act as a headwind for major currency pairs.

Meanwhile, the European Central Bank (ECB) recently cut interest rates for the eighth consecutive year to promote a gradual recovery in the eurozone. However, signs indicate a potential rate suspension in July. ECB President Christine Lagarde noted that policymakers are well-positioned to handle ongoing uncertainties, implying that the era of rate cuts may have ended. This shift in tone could help stabilize the euro’s losses in the near term.