EUR/USD Slips as Hormuz Uncertainty Weighs on Euro
The EUR/USD pair has been trading with mild losses near 1.1530 during Asian trading hours on Wednesday, weighed down by uncertainty surrounding US-Iran talks.
Ongoing tensions in the Middle East continue to boost safe-haven flows, supporting the Greenback and creating a headwind for the major pair.
The Fars news agency reported that Iran rejected US Treasury Secretary Scott Bessent's claim that the Strait of Hormuz will open tomorrow under a new deal. An Iranian official insisted that its ongoing discussions with Oman are not being held with US participation, but rather to establish an intermediate corridor that would halt both current Iran-controlled northern and US-backed southern routes.
The EUR/USD is expected to be closely monitored by traders as the US July employment data is due on Friday, which could offer more clues about the health of the labour market and the US interest rate path. In case of weaker-than-expected outcomes, this could undermine the USD against the EUR in the near term.