EUR/USD Slumps on Geopolitical Tensions and Hawkish Fed
The EUR/USD pair is struggling to recover from its lowest point since late July, trading near 1.1475 as geopolitical risks in Europe and the Middle East continue to support the US Dollar.
European officials have warned of increased Russian drone and missile threats against NATO members supporting Ukraine, while Iran-backed Houthi forces in Yemen targeted Saudi Arabia's capital Riyadh with missiles and drones on Saturday.
The US Federal Reserve's hawkish stance is also contributing to demand for the safe-haven Greenback, with interest rates raised last Wednesday and a dot plot showing one additional rate increase this year.
ECB President Christine Lagarde is scheduled to speak later today, but market participants are likely to remain sensitive to new geopolitical headlines and the outcome of the Trump-Xi meeting on Thursday.