Forex
EUR/USD Tumbles Below 1.1600 as US-Iran Conflict Looms
The EUR/USD pair declined below 1.1600 on Tuesday as traders grew cautious about the US-Iran conflict and its potential impact on global markets.
A report by UKMTO mentioned an incident in the Strait of Hormuz, where a vessel was struck by an unknown projectile while transiting the waterway.
The ongoing tensions in the Middle East could boost safe-haven currencies like the US Dollar and act as a headwind for EUR/USD in the near term.
However, lower bets for a September Federal Reserve rate hike might weigh on the USD, following soft US economic data last week. The CME FedWatch tool indicated a 35% odds of a rate hike at the Fed's September meeting, down from 47% a month earlier.