EUR/USD Sinks Amid Dovish ECB Comments and Rising US-Iran Tensions
The EUR/USD pair remains under pressure for the third consecutive day and trades around 1.1330, near its lowest level since May 2025. The European Central Bank's dovish comments from President Christine Lagarde have weighed on the shared currency.
Meanwhile, the US Dollar retains a bullish bias, trading near a two-month high. The market is pricing in over a 90% chance of a rate hike by year-end, despite New York Federal Reserve President John Williams' comments that the central bank need not rush its next move.
Hopes for a diplomatic solution to end the US-Iran conflict have faded after US President Donald Trump turned down a seven-day ceasefire proposal from Iran. The ongoing tensions underpin the safe-haven buck, validating the negative outlook for the EUR/USD pair.