On Thursday during Asian trading hours, the euro (EUR) dipped by 0.3% against the US dollar (USD), settling around 1.1590. It appears that significant currency pairs are experiencing heavy selling pressure, as market sentiment has turned cautious following Iran’s response to a US attack near Bandar Abbas airport, according to the Tasnim News Agency.
At that point, S&P 500 futures showed a decline of 0.3%, falling below 7,500, which indicates a notable decrease in investor optimism. Additionally, the US Dollar Index (DXY), which measures the dollar’s value against six major currencies, rose by over 0.3% to roughly 99.53.
Fars News Agency also reported that three explosions were heard to the east of Bandar Abbas, prompting air defense measures for several minutes.
In retaliation, Iran’s Islamic Revolutionary Guards Corps (IRGC) launched attacks on US military bases, warning of a “more decisive” reaction should there be further US aggression.
This cycle of attacks has dashed any hopes for a long-term agreement. Earlier this week, U.S. officials, including President Donald Trump, had expressed confidence that a deal could be in the works soon.
Meanwhile, investors are looking ahead to the release of preliminary data on the US Personal Consumption Expenditure Price Index (PCE) for April, as well as the German Harmonized Index of Consumer Prices (HICP) for May, which are due on Thursday and Friday, respectively.
