EUR/USD Crashes Below 1.14 Amid Ongoing Middle East Tensions
The Euro to Dollar exchange rate (EUR/USD) plummeted to three-week lows below 1.14 amid escalating oil prices due to Middle East tensions.
The conflict between the US and Iran has strengthened the Dollar, while energy markets and bond yields dominate near-term drivers.
UBS forecasts a Euro to Dollar rate of 1.18 by year-end and 1.20 by mid-2027, but warns that a prolonged escalation of the Iran conflict could lead to demand destruction in Europe and drive EUR/USD toward 1.10.