- The EUR/USD is expected to break through the 1.1500 support level as President Trump calls for Iran’s “unconditional surrender.”
- Trump has insisted that Iran should “act now” to prevent total destruction.
- The US dollar is strengthening, benefiting from its safe haven status.
The EUR/USD dipped below the significant 1.1500 mark on Monday, stepping back from recent peaks due to rising geopolitical tensions which boosted the US dollar’s appeal.
Currently, the EUR/USD is trading around 1.1481, having lost nearly 0.70% during the day.
This decline followed President Trump’s remarks on Tuesday, where he demanded Iran’s “unconditional surrender” and warned of dire consequences if Tehran does not dismantle its nuclear program.
He referred to Israeli airstrikes as “excellent” and hinted that future actions could be “even more severe,” urging Iran to “strike a deal now” or face complete defeat.
After attending the G7 Summit, Trump clarified his position; he’s not looking for a ceasefire, but rather an end to Iran’s nuclear ambitions.
Earlier in the day, he urged civilians in Tehran to “evacuate soon,” claiming that US and Israeli forces maintain “full control of the skies over Iran.” In a pre-dawn message, Trump mentioned knowing the hiding location of Iran’s top leader, though he stated, “we don’t plan to take him out, at least not now.”
The day began with a somewhat softer tone as Trump expressed the hope that “Israel and Iran can come to an agreement,” but added that, “sometimes we have to fight to get there.”
He reinforced the call for civilians to leave Tehran, suggesting a likelihood of increased military action. His statements unsettle the markets, driving risk-averse behavior and prompting traders to favor the dollar while weighing on the euro, irrespective of eurozone data.
